CERTIFIED AML AND FRAUD PROFESSIONAL
EXAM 2026 FULL PRACTICE TEST WITH
DETAILED SOLUTIONS
◉ T/F - CFEs can accurately determine the age of ink on paper..
Answer: False
◉ Fictitious Refund Scheme. Answer: An employee pretends to
return non-existent merchandise and pockets the cash. The register
log will balance with the register.
◉ Rent-A-Patient Schemes. Answer: Paying patients to undergo
medical procedures, then billing the insurer.
◉ Forged Maker Scheme vs. Forged Endorsement Scheme. Answer:
Maker = Someone who signs the check with a forged signature;
Endorsement = Someone who forges the endorsement with the third
party's name.
◉ The 3 common methods for concealing liabilities and expenses
are .... Answer: (1) Omitting liabilities and/or expenses (2)
Improperly capitalizing costs rather than expensing them (3) Failing
to disclose warranty costs & product-return liabilities.
,◉ False Accounting Entry. Answer: An employee debits the general
ledger and credits their own account.
◉ Current Procedural Terminology (CPT). Answer: Describes
inpatient and outpatient health care services.
◉ Purpose of U.S. Corporate Sentencing Guidelines. Answer: To
provide incentives for organizations to maintain internal
mechanisms for preventing, detecting, and reporting criminal
conduct.
◉ Sarbanes-Oxley Act. Answer: Prevents retaliation against whistle
blowers (public & nonpublic; civil & criminal).
◉ T/F - In white-collar crime, higher status increases probability of
imprisonment.. Answer: True
◉ Compliance
Deterrence. Answer: Control crime through incentives and admin.
Control crime through detection and punishment.
◉ Mitigating the Risk. Answer: Reducing the probability of an
adverse event
, ◉ The lowest level of reference for making moral decisions is ....
Answer: The law
◉ 2016 Report to the Nations identified 3 major categories of
occupational fraud:. Answer: 3 major categories of occupational
fraud: (1) asset misappropriation [most common, least costly] (2)
corruption (3) financial statement fraud [least common, most costly]
◉ Rule 10b-5 states (Securities Exchange Act of 1934) .... Answer:
Prohibits false statements and other fraudulent activity in
connection with the purchase or sale of any security.
◉ Rule 702 of the U.S. Federal Rules of Evidence states that ....
Answer: an expert witness may give their opinion if doing so will
help the court understand related evidence.
◉ Arraignment. Answer: The part in open court where the charges
are read and the defendant pleads.
◉ Futures contract. Answer: An agreement to buy or sell at a specific
date in the future at a predetermined price.
◉ T/F - A document is not a forgery just because it contains a false
representation.. Answer: True, written forgeries as a whole must
have apparent legal significance (Fake ≠ Forgery).
EXAM 2026 FULL PRACTICE TEST WITH
DETAILED SOLUTIONS
◉ T/F - CFEs can accurately determine the age of ink on paper..
Answer: False
◉ Fictitious Refund Scheme. Answer: An employee pretends to
return non-existent merchandise and pockets the cash. The register
log will balance with the register.
◉ Rent-A-Patient Schemes. Answer: Paying patients to undergo
medical procedures, then billing the insurer.
◉ Forged Maker Scheme vs. Forged Endorsement Scheme. Answer:
Maker = Someone who signs the check with a forged signature;
Endorsement = Someone who forges the endorsement with the third
party's name.
◉ The 3 common methods for concealing liabilities and expenses
are .... Answer: (1) Omitting liabilities and/or expenses (2)
Improperly capitalizing costs rather than expensing them (3) Failing
to disclose warranty costs & product-return liabilities.
,◉ False Accounting Entry. Answer: An employee debits the general
ledger and credits their own account.
◉ Current Procedural Terminology (CPT). Answer: Describes
inpatient and outpatient health care services.
◉ Purpose of U.S. Corporate Sentencing Guidelines. Answer: To
provide incentives for organizations to maintain internal
mechanisms for preventing, detecting, and reporting criminal
conduct.
◉ Sarbanes-Oxley Act. Answer: Prevents retaliation against whistle
blowers (public & nonpublic; civil & criminal).
◉ T/F - In white-collar crime, higher status increases probability of
imprisonment.. Answer: True
◉ Compliance
Deterrence. Answer: Control crime through incentives and admin.
Control crime through detection and punishment.
◉ Mitigating the Risk. Answer: Reducing the probability of an
adverse event
, ◉ The lowest level of reference for making moral decisions is ....
Answer: The law
◉ 2016 Report to the Nations identified 3 major categories of
occupational fraud:. Answer: 3 major categories of occupational
fraud: (1) asset misappropriation [most common, least costly] (2)
corruption (3) financial statement fraud [least common, most costly]
◉ Rule 10b-5 states (Securities Exchange Act of 1934) .... Answer:
Prohibits false statements and other fraudulent activity in
connection with the purchase or sale of any security.
◉ Rule 702 of the U.S. Federal Rules of Evidence states that ....
Answer: an expert witness may give their opinion if doing so will
help the court understand related evidence.
◉ Arraignment. Answer: The part in open court where the charges
are read and the defendant pleads.
◉ Futures contract. Answer: An agreement to buy or sell at a specific
date in the future at a predetermined price.
◉ T/F - A document is not a forgery just because it contains a false
representation.. Answer: True, written forgeries as a whole must
have apparent legal significance (Fake ≠ Forgery).
