The CFE
More than just a Credential
Sixth Biennial National Fraud Awareness Conference
Transportation Infrastructure Programs
July 28, 2010
Goals for This Session
The Credential
Career Impacts
Getting Certified
Post-Certification
Association of Certified Fraud Examiners
 Association of Certified Fraud Examiners formed, in part,
by Joseph T. Wells, CFE, CPA in 1988
 Wells’ Vision: Like-minded professionals who collaborate
and work toward a common goal
 ACFE Goal: Reduce WCC & instances of fraud
 Worldwide provider of anti-fraud training
 Multi-disciplinary, globally recognized professional
designation
Certified Fraud Examiner (CFE)
CFE’s posses expertise in all aspects of the anti-fraud
profession and have the proven ability to detect, prevent,
and investigate a wide range of fraud.
A CFE might perform any of the following functions:
Resolve allegations of fraud from inception to disposition
Gather evidence
Take Statements
Write Reports
Testify to findings
CFE’s are Found in Many Fields
 Jobs
 Law Enforcement
 Accountants
 Auditors (internal and external)
 Investigators
 Loss Prevention Specialists
 Where
 CPA firms
 Consulting Firms
 Government Agencies
 Law Firms
 College and University Scholars
 Others Interested in Anti-Fraud Efforts
Core Technical Knowledge of a CFE
Criminology
Financial Transactions
Fraud Investigation
Legal Elements of Fraud
Other Useful Knowledge & Skills
Attention to Detail
Analysis of Large Volumes of Data
Business Function
Computer Systems & Applications
Interview Techniques
Government Structure & Function
Other Useful Personal Traits
Adapts to stressful situations
Critical thinker
Takes ownership and accountable
High integrity, sound judgment
Flexible
Communication: Oral, Written
Able to Develop Rapport
CFE’s in the Federal Government:
Examples of What We Do
 Financial Statement Analysis
 Efficiency assessments
 Regulation compliance
 Budget development
 Financial data examination
 Internal control assessments
 Report preparation
Who Can Become A CFE?
Academic Requirement
Professional Requirement
References Attest to High Moral Character
Abide by ACFE Bylaws and Code of
Professional Ethics
Associate ACFE Member in good standing
Recommended Path of Study
CFE Exam Prep Course ($815 / $1,268):
CD-ROM study guide
Fraud Examiners Manual
Practice Exam
Exam study discussion forum
Exam preparation e-Newsletter
Live Coaching
CFE Exam
Exam is administered on a CD-ROM and
contains 500 questions, consisting of four parts:
Criminology and Ethics
Financial Transactions
Fraud Investigation
Legal Elements of Fraud
CFE Exam
Each section has 125 questions which must
be completed in the 2.5 hours allotted
Each question has a maximum time limit of
75 seconds
Test is multiple choice and true/false
Passing score is 75 percent on each section
You’ve passed!! Now what?
 Having a CFE credential does not make you a CFE, it enables you
to become a CFE
 Increase your vigilance
 The bar is raised
 Apply what you learn – formally and informally
 Give back to your profession
 Mentoring new CFE’s
 “Great power & great responsibility”
 Continuing education
 Adherence to Code of Ethics & Professional Standards
 “Do a Great Job and Make a Difference”
Maintaining your CFE Credential
Required annual Continuing Education:
The minimum required is 20 credits per year
At least 10 credits directly related to detection
and deterrence
Keep records of your CE for at least three
years
Adherence with Code of Ethics
Observe Professional Standards
What Does It Mean To Be a CFE ?
Professional Growth / Development
Networking & Knowledge Sharing
Recognized leader in detection,
deterrence and investigation of fraud
Salary Enhancement
Getting Involved
National level membership
Local level membership: Metro-DC Chapter
Mutually exclusive; several member
categories:
Certified Fraud Examiner
Associate member
Educator Associate member
Student Associate member
Participation at the Local Level
Quality, affordable training
Networking opportunities
Leadership skills development
Mentoring potential
Community Involvement
CFE exam study support
Active Involvement at the Local Level
Serve on a committee or support a committee
Programs & Training
Community & Membership Outreach
Speakers’ Bureau
Regular attendance at events
Speak on behalf of the chapter
Promote the Chapter in the Community
Join the Board of Directors
Example ACFE Certification Q&A’s
Blue, a fraud offender, had no known history of criminality.
One theory of crime causation suggests that people are not
inherently bad, but rather are taught to commit crime
through life's experiences. This is called the:
a. social causation theory b. trait theory c. social learning
theory d. none of the above
Example ACFE Certification Q&A’s
According to research, most embezzlers decide to
commit their crimes because:
a. they are essentially dishonest
b. they are living beyond their means
c. they have drug problems
d. none of the above
Example ACFE Certification Q&A’s
Given all of the following fraud prevention methods
within organizations, which one is probably the most
effective?
a. reducing rationalization
b. having an open-door policy
c. increasing the perception of detection
d. screening employees
Example ACFE Certification Q&A’s
White, an employee of ABC Corporation, intentionally issued two
payments for the same invoice. After the disbursements had been
mailed, White called the vendor and explained that a double payment
had been made by mistake. She asked the vendor to return one of the
checks to her attention. When the vendor returned the check, White
took it and cashed it. According to Occupational Fraud and Abuse, this
is an example of:
a. a shell company scheme
b. pass-through scheme
c. a receivables skimming scheme
d. a pay-and-return scheme
Example ACFE Certification Q&A’s
The statute that specifically outlaws the giving or
receiving of anything of value for the purpose of
improperly obtaining or receiving favorable treatment in
connection with U.S. government contracts is
a. the Foreign Corrupt Practices Act
b. the Anti-Kickback Act of 1986
c. the Civil False Claims Act
d. the "Honest Services"
Join Us, Won’t You?
Metro-DC Chapter of ACFE – Events
Provide more than 28 CPE’s per year covering topics
from FCPA, AML/Virtual Currency, to Legal Updates
Five 4 CPE Training Opportunities
One 8 CPE Training Opportunity
4-5 Networking Events
Find Us on Facebook & Linked In
Find Us at www.acfedc.org
Questions?
Metro-DC Chapter of ACFE
2121 Eisenhower Avenue, Suite 200
Alexandria, VA 22314
(888) 825-8021
(888) 868-4320 (f)
GA.Smith@acfedc.org
Cheryl.Hyder@acfedc.org
Chapter@acfedc.org