The Certified Fraud Examiner Program

The Certified Fraud Examiner program is an accrediting process for individuals with the specialized skills necessary to detect, investigate, and deter fraud. Typical members include fraud examiners, auditors, investigators, forensic accountants, loss prevention and security directors, law enforcement personnel, criminologists, academia and researchers in the area of white-collar crime.

BENEFITS:

During the last several years, fraud examination has been described in such publications as U.S. News and World Report, Working Woman, and Money magazines as one of the fastest growing career fields for the future, and that "Certified Fraud Examiners have an edge."

The designation provides Certified Fraud Examiners (hereinafter referred to as "CFEs") with a variety of benefits, including:

Professional recognition

Career opportunities

Membership in local chapters

Professional anti-fraud training

Bimonthly magazine

Established in 1988, the program is administered by the 20,000 member Association of Certified Fraud Examiners (hereinafter referred to as the "Association"). The Association is chartered as a private corporation, whose standards for admission are set by the Board of Regents, an independent body. All CFEs are automatically members of the Association. The Association is responsible for:

Setting admission standards

Preparing and administering the Uniform CFE Examination

Maintaining membership records

Providing continuing professional education

Assisting members with research and career opportunities

CFEs have the expertise to resolve allegations of fraud, obtain evidence, take statements, write reports, testify to findings and assist in the detection and prevention of fraud and white-collar crime.

"Becoming a Certified Fraud Examiner is not an easy task. The CFE designation is restricted to Associate Members in good standing who have proven expertise to detect, prevent, and investigate a wide range of fraudulent conduct."

EXPERIENCE:

The qualifications to become a CFE have are discussed in the "What Is A Certified Fraud Examiner?" section of this information. The experience of candidates is also critical and must be in a field related - directly or indirectly - to the detection, investigation, or deterrence of fraud. First priority is given to candidates directly employed in the fraud examination field.

However, other acceptable experience includes accounting and auditing (example: internal and external auditors); criminology and sociology with an emphasis on white-collar crime; fraud or white-collar crime investigation (example: Federal, state, and local law enforcement officials); law, as it relates to civil or criminal fraud (example: prosecutors and certain specialized attorneys); and loss prevention specialists (example: corporate fraud examination or security directors).

Academic or research experience in the above areas is also accepted. If a person's experience is not in one of those mentioned but he/she still believes they qualify, the individual can submit the application, fee, and a letter of explanation to the Admissions Office of the Association located in Austin, Texas. The individual will be advised if the experience is not acceptable, and in that case the fee will be fully refunded.

CONTINUING PROFESSIONAL EDUCATION:

CFEs are required to maintain their proficiency by obtaining at least 20 hours of continuing professional education annually, or an average of 60 hours over three years. At least fifty percent of the continuing professional education must relate directly to the detection and deterrence of fraud.

THE UNIFORM CFE EXAMINATION:

The Examination's purpose is to establish a reliable testing instrument that adequately assesses the level of competence needed to become a Certified Fraud Examiner.

A minimum score of 40 points is required to take the Examination and a minimum of 50 points is required to be certified. Required documentation must be submitted prior to taking the Examination. The application details how the point score is computed. In general, 10 points are awarded for each equivalent year of college and 5 points are given for each full year of professional experience in a related field.

EXAMINATION BY COMPUTER:

The testing procedure is unique. Rather than a proctored exam offered in limited locations on several dates, the Uniform CFE Examination is administered entirely by computer any time after the candidate has adequately prepared. Following are the steps necessary for the Examination.

1. If the individual meets the minimum score to take the Examination, they should complete the application, sign it and submit the application along with the required fee to the Association.

2. The application will be reviewed. If accepted, the individual will be provided with the computerized version of the Fraud Examiners Manual (current edition). They will also receive a list of study references. An individual can also prepare by ordering the optional computerized Uniform CFE Examination Preparation Course self-study.

3. When the individual has studied enough to take the Examination, they need to request the Examination from the Association. They will receive a set of diskettes containing the Examination and instructions. Also included is a sample Examination the individual may take to familiarize themselves with the format. The Examination has sophisticated controls to ensure the integrity of the process. All Examination questions are randomly generated from a master database. Therefore, no two Examinations are alike.

4. The Examination may be taken at a convenient place, such as your home or office. Once the Examination is installed on your computer, the candidate has 30 days to complete all four sections and return it to the Association for grading. Each Examination section is 2.5 hours in length, and one optional 5-minute break can be taken during each section. The total exam is 10 hours. The sections can be either together or separately, as long as the entire Examination is completed within 30 days.

5. When the Examination is returned, it will be graded within 30 days and the candidate will be notified of the scores. Initially, the candidate must sit for all four sections of the Examination. If every section is not successfully passed, the individual has a maximum of three consecutive sittings to pass the remainder. If not, credit will be lost for the successfully completed section(s). Currently, the Examination is only available in English.

Candidates who will receive a baccalaureate degree may sit for the Examination in their last semester before graduation. However, under no circumstances shall a Certificate be awarded to any person with less than 50 points, which must include at least two years of professional experience in a related field.

The computerized Examination requires either: an IBM-compatible computer, MSDOS 3.1 (or higher) and a minimum of 640K of RAM and 4MB hard disk space; or a Macintosh Plus (or higher) with at least 1MB of RAM, System 4.2 and Finder 6.0 (or higher), and 6MB of hard disk space.

EXAMINATION SCOPE:

The test is continually updated to be as current as possible on laws and other important pronouncements. The Examination covers the candidates knowledge in the following four areas:

1. Fraudulent Financial Transactions - Basic accounting and auditing theory; proving illicit transactions; financial statement analysis; internal controls to deter fraud; and other auditing and accounting matters

2. Fraud Investigation - Interviewing; obtaining information from public records; taking statements; evaluating deception; evidence gathering and report writing

3. Legal Elements of Fraud - Criminal and civil law; rules of evidence; expert witness matters and rights of the accused and accuser

4. Criminology and Ethics - Crime statistics; administration of criminal justice; theories of crime causation; theories of fraud prevention; crime information sources; and ethical situations

EXAMINATION GRADING:

In order to pass the test, a score of 75% on each and every part must be achieved. Previous examinations are not released. This procedure ensures the integrity of the testing process. A subcommittee of the Board of Regents uniformly scores completed examinations. The Board also conducts an analysis of the Examinations, at which time any necessary adjustments are made. Each candidate's anonymity is maintained during the grading process. In order to ensure that all are fairly graded, the Board of Regents reviews a representative sampling of all Examinations.