CFE Question of the Day: Specific Intent in Fraud

Quiz Yazan Ibrahim
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CFE exam practice question — CFE Question of the Day: Specific Intent in Fraud

CFE exam practice question: daily practice for the Certified Fraud Examiner (CFE) exam — domain: Law.

Question

A company controller created backdated vendor credits and redirected payments to a personal account. Which element must the prosecutor prove beyond a reasonable doubt to secure a criminal conviction for fraud in most jurisdictions?

  • A. The defendant acted with specific intent to deprive the company of money or property.
  • B. The defendant's actions were negligent and resulted in financial loss to the company.
  • C. The defendant had a motive, such as personal debt or financial pressure, to commit the act.
  • D. The defendant's conduct was reckless but lacked purposeful intent to deceive.
Show the answer and explanation

Correct answer: A. The defendant acted with specific intent to deprive the company of money or property.

The correct answer is that the prosecutor must prove specific intent to deprive the company of money or property. Criminal fraud offenses generally require a knowing or purposeful deception to obtain an unlawful benefit—mere negligence or accident is insufficient. Option B is wrong because negligence can support civil liability but typically does not meet the mens rea for criminal fraud. Option C is incorrect because motive may be probative but is not an essential element the prosecution must prove. Option D is wrong because recklessness (awareness of risk) falls short of the purposeful, knowing deception required for most fraud statutes.

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