Certified Fraud Examiner (CFE)

Definition

A Certified Fraud Examiner (CFE) is a professional who specializes in the detection, prevention, and investigation of fraud. CFEs are trained to understand the underlying principles of fraud schemes and the legal aspects involved.

5 Must Know Facts For Your Next Test

1. CFEs possess skills in forensic accounting, criminology, law, and investigation techniques.
2. Earning a CFE designation requires passing an exam administered by the Association of Certified Fraud Examiners (ACFE).
3. CFEs are often employed in roles within internal audit, compliance, and risk management departments.
4. The CFE credential is globally recognized and valued across multiple industries for its rigorous standards.
5. Managerial accountants may work closely with CFEs to develop internal controls that prevent financial fraud.

Review Questions

• What key skills do Certified Fraud Examiners bring to an organization?
• Which organization administers the certification exam for CFEs?
• How can managerial accountants collaborate with CFEs to enhance fraud prevention?

Related terms

Forensic Accounting: The use of accounting skills to investigate financial discrepancies and potential fraud.

Internal Audit: An organizational function that evaluates the effectiveness of risk management, control, and governance processes.

Risk Management:

The process of identifying, assessing, and controlling threats to an organization's capital and earnings.