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CFE study lessons

Certified Fraud Examiner — 25 free, citation-backed lessons covering every exam domain. Read on any device, no login.

Start with Lesson 01 →
  1. 01Welcome: Becoming a Fraud Examiner (and Passing This Exam)Meet the four sections of the CFE Exam and the mindset behind the credential: fraud is concealed by design, and your job is to detect, investigate, and deter it. Get the Fraud Triangle, the study loop, and the independence disclaimer up front so the rest of the course clicks.5 min read
  2. 02Defining Fraud and the Occupational-Fraud TaxonomyLearn the exam's working definition of fraud and the three branches of the ACFE fraud tree — asset misappropriation, corruption, and financial statement fraud. Master the inverse frequency-versus-severity relationship the exam loves to test.5 min read
  3. 03Accounting Concepts Every Examiner Must KnowBuild just enough accounting fluency to read a fraud in the books: the accounting equation, double-entry, the three financial statements, and accrual versus cash. See exactly where each concept gets manipulated and how to spot it.5 min read
  4. 04Asset Misappropriation I: Cash Receipts (Skimming & Larceny)Nail the exam's favorite distinction — skimming (off-book theft before recording) versus cash larceny (on-book theft after) — plus lapping and the controls that break it. Learn to read a scenario for the timing tell.5 min read
  5. 05Asset Misappropriation II: Fraudulent DisbursementsWork through the five disbursement families — billing, payroll, expense reimbursement, check tampering, and register schemes — with their red flags and sub-schemes. Learn the two-step exam move: name the family, then the specific scheme.5 min read
  6. 06Inventory, Non-Cash Assets, and MisuseCover how inventory and other non-cash assets are stolen and, crucially, how the shortage is concealed in the records. See why the concealment step is usually where the exam question turns.5 min read
  7. 07Corruption: Bribery, Kickbacks, and Conflicts of InterestDistinguish the four corruption sub-schemes and the discriminators that separate them — bribery versus illegal gratuity, bribery versus extortion, and the undisclosed interest that signals a conflict. Add kickbacks and bid-rigging to your toolkit.5 min read
  8. 08Financial Statement Fraud SchemesLearn the five categories of cooked books — fictitious revenues, timing differences, concealed liabilities, improper disclosures, and improper asset valuation — and why this is a management crime. Connect Sarbanes-Oxley and analysis-based detection.5 min read
  9. 09Bribery of Foreign Officials and the FCPAMaster the Foreign Corrupt Practices Act's two halves — anti-bribery and books-and-records — its elements, narrow exceptions, and classic third-party red flags. Practice splitting a fact pattern into the right half of the statute.5 min read
  10. 10Industry-Specific & Emerging SchemesRecognize the same fraud logic dressed up in banking, insurance, healthcare, and consumer settings, plus cyber and payment fraud. Learn to classify any cyber scheme back to a branch of the fraud tree.5 min read
  11. 11The Legal System, Burdens of Proof, and Fraud's ElementsGet the legal framework the rest of the section hangs on: common versus civil law, criminal versus civil actions, the three burdens of proof, and the legal elements of fraud. Stop falling for the reversed-standard distractor.5 min read
  12. 12Federal Fraud Statutes: Mail, Wire, Money Laundering, RICOMatch conduct to statute — mail fraud (§1341), wire fraud (§1343), money laundering (§1956/§1957) with its three stages, and RICO (§1961). Learn the subtle point that the mailing or wire itself need not be fraudulent.5 min read
  13. 13Securities, Tax, and Bankruptcy FraudCover securities fraud and Rule 10b-5, insider trading and the duty that makes it illegal, tax evasion versus lawful avoidance, and bankruptcy fraud. Build the habit of matching conduct to the right statutory arena.5 min read
  14. 14Individual Rights and Constitutional Limits in ExaminationsUnderstand the state-action doctrine and why a private examiner isn't a police officer — but still can't coerce, detain, or invade reasonable privacy. Apply the Fourth, Fifth, and Sixth Amendments and Miranda correctly.5 min read
  15. 15Evidence, Litigation, and the Expert WitnessLearn what makes evidence admissible — relevance, authentication, the hearsay rule and the Rule 1006 summary, privilege and work product — and the difference between a fact and an expert witness. Keep your evidence and your testimony defensible.5 min read
  16. 16Planning and Conducting the Fraud ExaminationRun an examination the way the exam expects: start only with predication, follow the fraud theory approach (analyze, hypothesize, test, refine), and work from general to specific with the suspect last. Stay objective and avoid confirmation bias.5 min read
  17. 17Evidence Collection, Chain of Custody, and DocumentationMaster the discipline that makes evidence hold up: an unbroken chain of custody, working from copies and forensic images rather than originals, and contemporaneous documentation. See how a broken chain can sink an otherwise perfect case.5 min read
  18. 18Interview Theory and ApplicationLearn the four interview types, the neutral-to-suspect order, and how to use open, closed, and leading questions — plus how to read behavior without over-reading it. Conduct a lawful, voluntary admission-seeking interview.5 min read
  19. 19Sources of Information and Public RecordsFind the case in public and open-source records — courts, corporate filings, property, and online footprints — while staying inside the law. Avoid the traps of pretexting and misusing consumer reports.5 min read
  20. 20Data Analysis, Digital Forensics, and Benford's LawPut data to work: Benford's Law for anomaly detection, duplicate and gap testing, cross-file matching, and forensic imaging with hashing. Remember that analytics flags leads — it doesn't prove fraud.5 min read
  21. 21Tracing Illicit Transactions and Report WritingChoose the right proof method — the direct (transaction) method when records exist, the indirect (net-worth) method when they don't — and write a report that states facts without opining on legal guilt. Support recovery and stay objective.5 min read
  22. 22Why People Commit Fraud: The Fraud Triangle and White-Collar CrimeGo deep on the most-tested prevention model — Cressey's Fraud Triangle and the Fraud Diamond's added capability — and learn why opportunity is the leg organizations can actually control. Turn theory into deterrence.5 min read
  23. 23Corporate Governance, Internal Controls, and the COSO FrameworkLearn the five COSO components, preventive versus detective controls, and why tone at the top and management override decide whether controls work. Connect Sarbanes-Oxley §404 and the audit committee to fraud deterrence.5 min read
  24. 24Fraud Risk Assessment, Anti-Fraud Programs, and Professional EthicsRun a fraud risk assessment by likelihood and significance, build a program around the single most effective detection method — tips and hotlines — and apply the ACFE Code of Professional Ethics to your own conduct.5 min read
  25. 25Exam Day: Strategy, Pitfalls, and Final ReviewPull the four sections together with a fast section-by-section review, the distractors to watch for, and a calm exam-day plan. Walk in knowing how to read a scenario stem and pick the best answer.6 min read

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