Becoming a Certified Fraud Examiner (CFE) increases employment opportunities and earning potential. To obtain certification, an application, exam fees, and three professional letters of recommendation are required. The four-part exam covers criminology and ethics, financial transactions, fraud investigation, and legal elements of fraud. Preparation includes studying the Fraud Examiners Handbook and attending a CFE exam preparation course.
A Certified Fraud Examiner (CFE) is a person who has gone through school to become an expert in the detection, prevention, investigation and deterrence of fraud. While it is not necessary to become a CFE to gain employment in the fraud examination field, obtaining the credential helps increase a person’s likelihood of becoming employed in the field and increases their earning potential. In fact, a 2005 study by the Association of Certified Fraud Examiners (ACFE) showed that those with certification earn an average of 26% more than those without CFE certification.
To obtain CFE certification, you must complete an application, which includes a recent photo, proof of education, and three professional letters of recommendation, and submit exam fees to the ACFE. There are strict guidelines on what should be included in the letter of recommendation, such as how well the writer knows you and your opinions regarding your integrity, character and professional skills. The next step in earning the CFE certification is to complete a four-part exam. Areas covered on the CFE exam are criminology and ethics, financial transactions, fraud investigation, and the legal elements of fraud.
The criminology and ethics section of the CFE exam covers areas such as fraud prevention theories, criminal justice administration, source of information about crimes, theories of criminal causes, and ethical situations. The financial transactions section of the CFE exam requires proof of knowledge in basic auditing and accounting theory, internal controls for fraud deterrence, and fraud schemes. The fraud investigation portion covers taking statements, interviewing individuals, methods of obtaining information from public records, evaluating fraud, how to track illicit transactions, and reporting. The legal elements of the fraud section of the CFE exam test an individual’s knowledge of civil law, criminal law, legal aspects of fraud exams, rules regarding evidence, and the rights of the accuser and the accused.
To prepare for the CFE exam, one can obtain and study the Fraud Examiners Handbook. Approximately 80% of the questions on the CFE exam are derived directly from this handbook. The remaining questions come from other study materials, a list of which can be downloaded from the ACFE website. Another option is to attend a CFE exam preparation course, a computer course offered by ACFE.
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