Certified Fraud Examiners (CFE) are professional individuals who are trained and certified to detect, prevent, and deter fraud. The organization in charge of issuing the CFE designation is the Association of Certified Fraud Examiners (ACFE). Candidates for the CFE certificate must meet certain educational and professional requirements and pass a rigorous exam that covers the principles of fraud examination in order to receive the CFE credentials.
According to the qualification section of the ACFE website the candidates’ eligibility to obtain the CFE credentials is based on a point system that awards points for education, professional affiliations, and experience. In order to be accepted to sit for the exam, candidates must obtain a minimum of 40 points. These points can be obtained through education or in combination with professional experience and professional affiliation. In general, applicants possess a bachelor degree which counts as 40 points. Although no specific field ...view middle of the document...
The first component of the exam is fraud prevention and deterrence. This section tests the candidates’ knowledge of the reasons people commit fraud and ways to prevent it. Some of the topics covered under this section are crime causation, white collar crime, fraud prevention, fraud risk assessment, and the ACFE Code of Professional Ethics. The second section of the exam covers the different types of financial transactions fraud incurred in the accounting records. The candidates must have knowledge of basic accounting and auditing concepts, fraud schemes, and internal controls to detect fraud. The third component of the exam is fraud investigation. In this section the candidates must demonstrate knowledge in conducting interview questions to witnesses and suspects of fraud, taking statements, obtaining information from public records, tracing illegal transactions, evaluating deception, and report writing. The last component of the CFE test is legal elements of fraud where the candidates must be familiar with the legal ramifications of conducting fraud examinations. Furthermore, the candidates must be familiar with the basic rules to preserve evidence and the rights of the individuals involved in the case.
In addition to passing the CFE examination the candidates must also have at least two years of direct or indirect professional experience of fraud detection or prevention. This experience can be obtained in the fields of accounting and auditing, criminology and sociology, fraud investigation, loss prevention, and law. The candidates who do not have experience in these fields can also meet this requirement if they can demonstrate experience that includes detection, investigation, or deterrence of fraud in other fields. These candidates must submit their application with a detail description of their professional experience for the board’s review (Membership & Certification, 2011).
The ACFE association is the “World’s largest anti-fraud organization” whose goal is “to reduce the incidence of fraud and white collar crime” and to “provide public confidence…within the profession” (About the ACFE, 2011). Thus, the organization ensures candidates meet the minimum educational and professional qualifications to sit for the CFE exam and administers a rigorous exam that tests the candidate’s knowledge of the principles of fraud examination.