CFE Certification Guide

Since our lives have moved online, the number of fraud instances and significant fraud events has increased quickly. According to recent estimates, fraud costs the economy $600 billion a year. As a result, there is a greater need for risk watchdogs to make sure that both public and private enterprises are protected against dishonest people.

Accountants have a method to distinguish themselves as authorities in the field of fraud examination thanks to the ACFE accreditation. Fraud experts concentrate on preventing, detecting, and discouraging fraud as well as a variety of minor activities that help them achieve these objectives. The certificate makes a number of employment opportunities available. 

In both the public and commercial sectors, CFE Certification can be found in positions such as compliance officer, forensic accountant, internal/external auditor, private investigator, and even in law. With their skills and professional experience, they deal with a range of fraud types and seek to reduce total fraud risk by enhancing loss prevention, preventing identity theft, offering security services, safeguarding intellectual property, and protecting intellectual property. For individuals with experience as fraud examiners, there are even high-level executive job opportunities, such as chief compliance officer, chief risk officer, and audit executive.

What is a CFE Certification?

A fraud examiner is a type of accountant that specializes in finding and exposing fraud and the criminals who commit it. They can identify fraud, conduct investigations, and wrap up cases of fraud since they have received specialized training and certification. Their work aids in preventing individuals and businesses from losing valuable money and financial transaction data to local, national, or international scammers. Additionally, they cooperate with law enforcement to ensure that they have the proof necessary to bring the criminals before a judge and jury.

What Does a Fraud Examiner Do?

A certified fraud examiner is a professional with experience in the detection, investigation, and resolution of fraud situations. They are white-collar office workers. They can be found working for many different businesses, and some even do it on their own. In reality, CFEs may be found working for the U.S. government as well as for the police, businesses, and private investigators.

CFEs who work with the police or another comparable group may spend the most of their day in an office using computers. However, they could also be tasked with leading investigations where they are required to gather evidence from a scene, question suspects, brief covert operatives, and carry out other detective-like tasks. CFEs occasionally conduct covert operations to gather data and identify fraud suspicions. All branches of law enforcement, including those at the federal, state, and local levels, use CFEs. To work in this industry, though, you'll need more than just your fraud examiner training; you'll also need to have a lot of fraud experience, have completed the right degree programme, and be able to uphold strict ethical standards and a code of ethics.

In the business setting, CFEs frequently examine their employer's finances to look for any indications of suspected theft or embezzlement. CFEs are frequently referred to as auditors in these roles. Many fraud investigators are also forensic accountants who use financial data analysis to look into potential cases of embezzlement, insurance fraud, and money laundering.

CFEs are frequently used by investigators and lawyers to determine if their clients may have been the victims of financial mismanagement. For instance, many divorce proceedings demand that a CFE Certification locate any potential missing assets and stock. In reality, a CFE Certification may get a second certification to run a private investigative business with a focus on forensic accounting and fraud investigations.

Education Requirements to Become a CFE

Degree required

Test takers must first be in good standing with the anti-fraud organization, have earned a bachelor's degree, or have similar work experience before they can register for the fraud examiner exam and get certified as a fraud examiner. In other words, applicants are not required to have a college degree.

Each year of a four-year degree that is not completed while a student counts as two years of experience toward this criterion. As a result, an applicant who has never attended college should plan to accumulate eight years of professional experience in order to apply without fulfilling the academic criteria. Therefore, earning a degree is more practical for aspirant CFEs than gaining experience. In reality, a lot of schools provide specific training in criminology, forensic accounting, and related fields.

Subject Focus

The fraud examiner exam covers the four primary areas of a CFE's professional life:

Transactions involving money and fraud schemes:

This part of the exam will cover auditing and accounting foundations, fraud schemes, procedures to combat fraud schemes, and accounting concepts and theories.

Law:

Candidates must comprehend the rules of evidence, applicable civil and criminal law, the rights of the accused and accuser, and the significance of expert witness testimony to be effective as fraud examiners.

Investigation:

Fraud examiners should be able to show that they have a working understanding of how to conduct an investigation, including how to gather information from witnesses and suspects, how to conduct effective interviews, and how to look for telltale signs of fraud, and more.

Fraud detection and aversion:

CFEs need to comprehend what drives people to commit fraud, as well as the fundamentals of fraud detection and how to avoid it. The causes and circumstances of white-collar crime, how to perform a risk assessment, and the ACFE Code of Professional Ethics are all covered in this section of the test.

How is the CFE Certification Exam Scored?

The certified fraud examiner test has four components, each of which must be passed with a score of 75% or above to pass. Within 3-5 business days of the exam, applicants receive their computer-generated results, which reflect their test-day performance. Participants in review courses also get their scores within this time limit. Every applicant has three opportunities to pass each section of the test and get certified as a fraud examiner.

Examinees should allot a whole day for the test because it takes two hours to finish each of the four segments. Candidates can request a new exam if a retake is required, and they will get a key for the new test in 3-5 business days.

Study Resources and Preparation for the Fraud Examiner Exam

Any member of the ACFE has access to a wealth of tools to help them get ready for the certification exam. The computer-based CFE Exam Prep Course is arguably the most popular exam preparation technique. This course may be done at the candidate's convenience and does not call for extra travel or unscheduled time. Another choice is to buy the premium CFE Certification Prep Toolkit, which comes with the prep course in addition to additional materials including the Fraud Examiners Manual, a test-prep flashcard software, and the CFE Certification Exam Study Guide to help you identify your test-taking strengths and weaknesses.

The AFCE provides four-day training programs with the option to take the test with a live proctor for individuals who prefer the structure and focus of an in-person event. Only a few cities in the United States host official AFCE sessions. Three sessions were planned in a recent year, one in each of Austin, Texas, New York City, and Washington, D.C. Candidates from outside the US can enroll in the course through reputable, independent third parties in international hub cities. The test may be taken by interested participants on the first day of class.

For those who prefer the structure and concentration of an in-person event, the AFCE offers four-day training courses with the option to take the exam with a live proctor. Official AFCE seminars are only held in a select few American cities. A recent year saw the scheduling of three sessions, one each in Austin, Texas, New York City, and Washington, D.C. Through trustworthy, impartial third parties in global hub cities, candidates from outside the US can enroll in the course. On the first day of class, interested individuals may take the exam.

Cost

The cost of becoming a CFE Certification may not be low. To join the ACFE, aspirants must first pay their dues. Future examiners must spend a significant amount of money on a bachelor's degree or get employment in fraud examinations to meet the experience or educational requirements. Candidates will wish to buy study materials or enroll in a conventional classroom course before taking the test.

The following costs apply to these choices:

• CFE Exam Prep Course - $796 for members; $995 for non-members
• CFE Exam Review Course (with live instructor) - Fees TBA by the association
• CFE Exam Prep Toolkit – $956 for members; $1,195 for non-members
• CFE Examination Cost – $400 or $300 with purchase of the CFE Exam Prep Course