Professional Documents
Culture Documents
Prep Course
2010 Edition
Guidebook
2 CFE Exam Prep Guidebook
Keep this guidebook handy — it will provide the necessary instructions, support
and tips for helping you earn your CFE credential.
Whether you are beginning or continuing your journey in fighting fraud, obtaining
the CFE credential positions you as a leader within the anti-fraud profession.
Those who earn the CFE credential have the proven ability to detect and deter a
wide range of fraudulent conduct. Many major corporations, businesses, govern-
ment agencies and global entities regard CFE status as an indicator of excellence in
the profession.
For technical support issues or any other questions, contact the ACFE:
(800) 245-3321
+ 1 (512) 478-9000
8:00 a.m. - 5:00 p.m. CST
www.ACFE.com
memberservices@ACFE.com
Look for this symbol throughout the guide for hints and study tips.
CFE Exam Prep Guidebook 3
Table of Contents
Remember to find a pace and study method that works for you.
Becoming a CFE is a challenging process, but with dedication,
you can accomplish your goal.
4 CFE Exam Prep Guidebook
Step 4: Export your CFE Exam Prep Course progress file and e-mail
it to the ACFE.
• See pg. 15 for instructions on exporting/verifying your progress file.
• After exporting your progress file, you will receive your CFE Exam
registration key code via e-mail within three to five business days. Continue
to study and review the questions in the CFE Exam Prep Course until you
receive your CFE Exam registration key code and are ready to take the exam.
• You may continue to study with the CFE Exam Prep Course in between
taking sections of the CFE Exam
Note: To qualify for the Money-Back Pass Guarantee, you must complete the CFE Exam within 90 days of
completing step 3.
Check the following steps or requirements as you complete them. See pg. 4, “Steps
to Becoming a CFE”, for more information about each step or requirement:
Note: You will receive your official certification after the Certification Committee has evaluated all of your
documents and exam scores. Those who have attained the CFE credential will be invoiced at the CFE dues rate
upon annual membership renewal.
AcroRead Folder
This folder contains the Adobe Acrobat installation files, which will enable you to
read the PDF files.
Backup Folder
This folder is included to aid technical support staff should you have problems with
the software.
Information Files
These are the files needed to install the CFE Exam Prep Course. The following
describes the importance of these files when using the software:
• Readme.txt — This file describes the contents of this CD-ROM, system
requirements and procedures for installing the CFE Exam Prep Course, as well as
procedures for installing and troubleshooting Adobe Acrobat Reader, the Adobe
licensing agreement and the process for viewing the Fraud Examiners Manual.
Please read the contents carefully before installing the software on your computer.
• Setup.exe — This is the CFE Exam Prep Course installation file, which will
copy all necessary files into your Program Files folder on your hard drive
during installation.
• CategoryCodes.pdf — This file contains a list of the subject category codes
used in the CFE Exam Prep Course.
• 2010 Fraud Examiners Manual.pdf — This file contains the entire text of
the Fraud Examiners Manual.
Forms
Several useful forms are included on the CD-ROM:
• CFE Exam app.pdf — This is the CFE Exam Application.
• Form-Examinee Affidavit.doc — Required for those who take the CFE Exam.
• Evaluation.pdf — Prep Course evaluation form.
• Money Pass Back Guarantee Waiver.doc — Those who sign this waiver are not
bound by the requirements of the Money-Back Pass Guarantee (See pg. 18).
8 CFE Exam Prep Guidebook
Administrator Permissions
To install the CFE Exam Prep Course, you must have administrator permission. The
default installation directory is c:\program files\CFE. Once installed, administrator
permission can be removed from the user’s logon account but it must have at least
“write permission” on the installation directory. “Write permission” is required since
the progress information and the exam answers are written to a file in that directory.
Getting Started
CFE Exam Prep Course/CFE Exam Topics
There are four main sections of the CFE Exam Prep Course and the CFE Exam.
Each main section includes topic-specific subsections — you can view these subsec-
tions and the number of questions in each by selecting “Status”, then “Detailed
Status Report.”
The bottom of each prep session screen displays a summary of information that will
help guide you through the session. Holding the mouse over each panel along the
bottom will give you an explanation of the panel’s contents.
*Note: You cannot select marked questions from a single subsection. All marked questions from the selected
main section will be presented.
**Note: Subsection mode includes all questions in the subsection including questions that were previously
answered correctly.
12 CFE Exam Prep Guidebook
Note: Individual session report summaries CANNOT be retrieved after the application is closed
Practice Exams
The practice test is designed to allow you to familiarize yourself with the mechanics
of the program prior to starting a test. You can access the practice test by clicking
on the Practice Test menu or the File menu labeled Practice Test. This will give you
an understanding of what to expect when taking the four tests that make up the
exam. You may take the practice tests as many times as you like, but only the last
score is saved.
• Detailed Status Report — The second way to examine your progress is the
Detailed Status Report. This report breaks down each section into topic-
related subsections and shows your percentage of correct answers. You will
be able to view the number of questions you answered correctly out of the
number of total questions in each subsection. This report highlights topics
you may need to study further.
Make sure you are consistently scoring at 85% or higher in each main
section to ensure that you are ready for the Exam. Answer as few or
as many questions in a given sitting and the software will calculate the
percent answered correctly.
“
By setting daily goals of more than was required to finish within
one year, it enabled me to be worry free if an unforeseen ob-
stacle occurred. Weekly reanalyzing of my progress was encour-
aging to know I was ahead of completion scheduled.”
— Crystal Watson, CFE
14 CFE Exam Prep Guidebook
A PDF copy of the manual is installed on your computer with the Prep Course. It is
titled, “2010 Fraud Examiners Manual.pdf.” You must use Adobe Acrobat Reader
to view the file. If you do not have Adobe Acrobat already installed, please open the
“AcroRead” folder on the CD and choose “setup.exe” to install the Reader software.
You may also print out all or part of the manual. Alternatively, a printed version of
the Fraud Examiners Manual is available for purchase from the ACFE (visit
www. ACFE.com/Shop for details.) You may also use the Fraud Examiners Manual
as a reference tool separately from the CFE Exam Prep Course.
Note: Previously marked questions will not show up as marked on the second computer. Progress files from two
computers cannot be merged.
2. Select your save destination and enter the file name using firstname_lastname.
2. Select the file from the location where your progress file was previously saved
and click “Open”:
3. Confirm that you wish to overwrite the previous progress file by selecting “Yes”*:
*You will not be able to retrieve the previous Prep data once you have
overwritten the file.
CFE Exam Prep Guidebook 17
You must submit your CFE Exam Application form with proof of your education,
three CFE Candidate Recommendation Forms, a recent photograph and payment.
A photocopy of transcripts or certificates for any degrees earned and professional
certifications acquired are acceptable for proof of education.
You may waive your option to qualify for the Money-Back Pass Guarantee. Use the
Money-Back Pass Guarantee Waiver included on your CD-ROM, fill out the form
and fax or mail it to the ACFE.
Note: If you qualify for the Money-Back Pass Guarantee and you fail any of the four sections of the Exam,
you may retake those sections again at no additional cost. If you do not wish to retake the sections, then you
may receive a refund of the purchase price of the CFE Prep Exam Prep Course software. (Please note that if
you received/purchased this software in connection with a special offer such as a bundle or as part of a live
instructional program, you may only receive a refund of that portion of the purchase price that is allocated to
the Prep Course software.)
The CFE Exam contains 500 multiple choice and true/false questions designed to
test your knowledge in four areas:
• Fraud Prevention and Deterrence
• Financial Transactions and Fraud Schemes
• Legal Elements of Fraud
• Fraud Investigation
CFE Exam Prep Guidebook 19
Approximately 90% of the questions on the CFE Exam come from the Fraud
Examiners Manual. The remaining questions are derived from the Corporate Fraud
Handbook, Second Edition by Joseph T. Wells (2007, published by John Wiley &
Sons, ISBN 9780470095911).
Purchasing the Corporate Fraud Handbook is optional — use of the book is not
needed to successfully complete the Prep Course or the exam; however, we do
recommend it as an excellent reference tool.
At least 10 hours of CPE credit must be fraud-related. CFEs must certify their com-
pliance with CPE requirements on an annual basis according to their anniversary
date. For more information about CPE compliance, visit www.ACFE.com/CPE.
CFE Exam Prep Guidebook 21
Troubleshooting
Message: Run-Time Error (insufficient permissions)
After installing the CFE Exam Prep Course, launch the application and enter the
activation code. When you press ‘Enter,’ the application writes your activation
information to a file located in the installation directory (default location is C:\
Program Files\CFE). If you do not have at least “write permission,” you will receive
the following error:
Someone with “Administrator Permission” on your local machine will have to give
you at least “write permission” to the installation directory in order to avoid this
error.
When I try to access Help.HLP in Windows Vista, the file will not
open:
1. To resolve this error visit www.microsoft.com.
2. Download WinHlp32.exe (can be located by using search box).
3. Install WinHlp32.exe.
4. The Help and Glossary files should now open in Windows Vista.
1. GRANT OF LICENSE
This Section of the EULA describes Your general rights to install and use the Software Product. The
license rights described in this Section are subject to all other terms and conditions of this EULA.
General License Grant to Install and Use Software Product. Subject to the terms and conditions of the EULA,
ACFE grants to You and You hereby accept, without the right to sublicense, a nonexclusive, nontransferable
license to install and use the Software Product. You may install and use one copy of the Software Product on a
single computer, device, workstation, terminal, or other digital electronic or analog device (“Device”). You may
make a second copy of the Software Product and install it on a portable Device for the exclusive use of the
person who is the primary user of the first copy of the Software Product. A license for the Software Product
may not be shared, sublicensed, sold, or otherwise transferred to a third party without the express written
consent of ACFE.
Additional License Grant for Media Elements. The Software Product may include certain photographs,
clip art, animations, sounds, music and video clips (together “Media Elements”). If so, the following
terms describe Your rights to the Media Elements:
Reservation of Rights. All rights not expressly granted are reserved by ACFE.
24 CFE Exam Prep Guidebook
Copy Protection. The Software Product may include copy protection technology to prevent the unau-
thorized copying of the Software Product or may require original media for use of the Software Product
on the Device. It is illegal to make unauthorized copies of the Software Product or to circumvent any copy
protection technology included in the Software Product.
Limitations on Reverse Engineering, Decompilation, and Disassembly. You may not reverse engi-
neer, decompile, or disassemble the Software Product, except and only to the extent that such activity is
expressly permitted by applicable law notwithstanding this limitation.
Separation of Component Parts. The Software Product is licensed as a single product. Its component
parts may not be separated for use on more than one Device unless expressly permitted by this EULA.
Trademarks. This EULA does not grant You any rights in connection with any trademarks or service
marks of ACFE.
Support Services. ACFE may provide You with support services related to the Software Product (“Support
Services”). Any supplemental software code provided to You as part of the Support Services are considered
part of the Software Product and subject to the terms and conditions of this EULA. You acknowledge and
agree that ACFE may use technical information You provide to ACFE as part of the Support Services for its
business purposes, including for product support and development. ACFE will not utilize such technical
information in a form that personally identifies you.
Termination. Without prejudice to any other rights, ACFE may terminate this EULA if You fail to comply
with the terms and conditions of this EULA. In such event, You must destroy all copies of the Software
Product and all of its component parts.
4. BACKUP COPY
After installation of one copy of the Software Product pursuant to this EULA, you may keep the original
media on which the Software Product was provided by ACFE solely for backup or archival purposes. If
the original media is required to use the Software Product on the Device, you may make one copy of
the Software Product solely for backup or archival purposes. Except as expressly provided in this EULA,
you may not otherwise make copies of the Software Product or the printed materials accompanying the
Software Product.
CFE Exam Prep Guidebook 25
6. EXPORT RESTRICTIONS
You acknowledge that the Software Product is of U.S. origin. You agree to comply with all applicable
international and national laws that apply to the Software Product, including the U.S. Export Administra-
tion Regulations, as well as end-user, end-use and destination restrictions issued by U.S. and other
governments.
7. APPLICABLE LAW
This EULA shall be interpreted, construed, enforced and governed by and in accordance with the laws of
the State of Texas without regard to conflict of law provisions. Venue for all disputes shall lie exclusively
in Travis County, Texas. You consent to the jurisdiction of any court of competent jurisdiction situated in
Travis County, Texas.
8. LIMITED WARRANTY
ACFE warrants that the Software Product will perform substantially in accordance with the accompany-
ing materials for a period of one year from the date of receipt.
If an implied warranty or condition is created by your state/jurisdiction and federal or state/provincial law
prohibits disclaimer of it, you also have an implied warranty or condition, BUT ONLY AS TO DEFECTS
DISCOVERED DURING THE PERIOD OF THIS LIMITED WARRANTY (ONE YEAR). AS TO ANY
DEFECTS DISCOVERED AFTER THE ONE YEAR PERIOD, THERE IS NO WARRANTY OR CONDI-
TION OF ANY KIND. Some states/jurisdictions do not allow limitations on how long an implied warranty
or condition lasts, so the above limitation may not apply to you.
YOUR EXCLUSIVE REMEDY. ACFE’s and its suppliers’ entire liability and your exclusive remedy shall be,
at ACFE’s option from time to time exercised subject to applicable law, (a) return of the price paid (if any)
for the Software Product, or (b) repair or replacement of the Software Product, that does not meet this
Limited Warranty and that is returned to ACFE with a copy of your receipt. You will receive the remedy
elected by ACFE without charge, except that you are responsible for any expenses you may incur (e.g.
cost of shipping the Software Product to ACFE). This Limited Warranty is void if failure of the Software
Product has resulted from accident, abuse, misapplication, abnormal use or a virus. Any replacement
Software Product will be warranted for the remainder of the original warranty period or thirty (30) days,
whichever is longer. To exercise your remedy, contact: ACFE, Attn. Member Services/716 West Ave./
Austin, TX 78701.
26 CFE Exam Prep Guidebook
9. DISCLAIMER OF WARRANTIES
The limited warranty that appears above is the only express warranty made to you and is provided in
lieu of any other express warranties (if any) created by any documentation or packaging. Except for the
limited warranty and to the maximum extent permitted by applicable law, ACFE and its suppliers provide
the software and support services (if any) as is and with all faults, and hereby disclaim all other warran-
ties and conditions, either express, implied or statutory, including, but not limited to, any (if any) implied
warranties, duties or conditions of merchantability, of fitness for a particular purpose, of accuracy or
completeness or responses, of results, of workmanlike effort, of lack of viruses and of lack of negligence,
all with regard to the software, and the provision of or failure to provide support services. Also, there is
no warranty or condition of title, quiet enjoyment, quiet possession, correspondence to description or
non-infringement with regard to the software.
Purchase Date
I have 90 days from the time I completed the CFE Exam Prep
Course to take the CFE Exam: