Spring Sale Discount Flat 70% Offer - Ends in 0d 00h 00m 00s - Coupon code: 70diswrap

DumpsWrap Logo

ACFE CFE-Law Dumps

Page: 1 / 17
Total 171 questions
Get CFE-Law Full Access Download CFE-Law PDF

Certified Fraud Examiner (CFE) - Law Questions and Answers

Question 1

A company files a civil lawsuit against one of its directors for insider trading. At the end of the trial, a court orders the director to refrain from purchasing or obtaining the stock of a particular corporation. Which of the following BEST describes this type of remedy?

Options:

A.

Punitive damages

B.

Declaratory relief

C.

Injunction

D.

Monetary relief

Question 2

The Organisation for Economic Co-operation and Developments (OECD) Recommendation on Combating Bribery m International Business (Recommendation) urges member states to combat the bribery of foreign public officials by taking steps to improve which of the following primary areas within their respective infrastructures?

Options:

A.

Public health and safety regulations

B.

Laws and regulations related to public subsidies licenses, and contract procurement

C.

Laws and regulations covering e-commerce

D.

Consumer data protection laws

Question 3

Ellis works for a business that filed for bankruptcy. The administrator presiding over the bankruptcy contacts Ellis and requests information regarding his employer's financial affairs Assuming the administrator has all of the powers recommended in the World Bank Principles for Effective Insolvency and Creditor/Debtor Regimes (World Bank Principles) which of the following is TRUE?

Options:

A.

The administrator may only seek information regarding the bus ness that filed bankruptcy if Ellis consents to providing it.

B.

The administrator has no power to obtain the information under any circumstances

C.

The administrator may compel Ellis to provide the information despite Ellis's relationship to the business

D.

The administrator may not obtain the information unless the business agrees in writing

Question 4

Which of the following statements about the appeals process in cranial cases is MOST ACCURATE?

Options:

A.

In common law jurisdictions, appellate courts are generally not permitted to make their own factual determinations when reviewing a case

B.

In civil law jurisdictions appellate courts are generally not permitted to make their own legal conclusions when reviewing a case

C.

Appellate courts will usually hear an appeal even if the petition was not filed in a timely manner

D.

Appellate courts will usually reverse a conviction even if the trial court's error did not affect the outcome of the case

Question 5

Each of the following is a common legal defense for tax evasion EXCEPT:

Options:

A.

The taxpayer relied on an attorney or accountant.

B.

The taxpayer has filed for bankruptcy.

C.

The taxpayer has a mental illness.

D.

There is no tax deficiency.

Question 6

Which of the following is an example of a trade-based money laundering scheme?

Options:

A.

An importer and an exporter conspire to conceal illicit funds by creating invoices that understate the quantity of goods shipped internationally

B.

An accountant overstates a restaurants revenues to hide illegal funds that are secretly laundered through the business

C.

A drug cartel outside of the United States launders illicit funds by hiring runners to deposit small amounts of money in bank accounts throughout the United States

D.

A businessperson deposits illicit funds into the bank account of a company they secretly own which then lends the funds back to them

Question 7

Which of the following is NOT a legal element that must be shown to prove a claim for fraudulent misrepresentation of material facts?

Options:

A.

The victim relied on the misrepresentation

B.

The defendant acted negligently

C.

The defendant made a false statement (i, e., a misrepresentation of fact)

D.

The victim suffered damages as a result of the misrepresentation

Question 8

During an internal investigation Todd a Certified Fraud Examiner (CFE) interviewed Janessa a fraud suspect Although Janessa wanted to leave in the middle of the interview, Todd blocked the exit and prevented her from leaving Janessa subsequently confessed to committing fraud If under these facts Janessa files a lawsuit (or false imprisonment against Todd, Todd will likely

Options:

A.

Win the case because he is protected under the qualified business privilege

B.

Lose the case if a trier of fact concludes that he restrained Janessa without consent or legal justification

C.

Lose the case because janessa did not leave the interview

D.

Win the case if he did not know the conduct was illegal

Question 9

Which of the following statements concerning money services businesses (MSBs) is INCORRECT?

Options:

A.

MSBs tend to have a tower money laundering risk than other financial institutions.

B.

MSBs are generally less strictly regulated than traditional financial institutions.

C.

A check cashing company is classified as an MSB.

D.

A currency exchange is classified as an MSB.

Question 10

Which of the following statements is MOST ACCURATE concerning how criminal bargaining agreements are typically handled in jurisdictions where such agreements are allowed?

Options:

A.

The defense generally has the discretion to decide whether to settle charges with a bargaining agreement.

B.

Both the prosecution and the defense have the discretion to decide whether to settle charges with a bargaining agreement.

C.

Only the judge assigned to the case has the discretion to decide whether to settle charges with a bargaining agreement.

D.

The prosecution generally has the discretion to decide whether to settle charges with a bargaining agreement.

Question 11

Frederick has multiple high-volume foreign bank accounts. The country he lives in requires him to report such accounts annually for tax purposes but he regularly and intentionally fails to report his accounts in order to reduce the amount of taxes he must pay. Which of the following schemes has Frederick MOST LIKELY committed?

Options:

A.

A tax credit evasion scheme

B.

A value-added tax evasion scheme

C.

An excise tax evasion scheme

D.

An income and wealth tax evasion scheme

Question 12

All of the following are common legal defenses for tax evasion EXCEPT:

Options:

A.

Mental illness of the taxpayer

B.

Death of the taxpayer

C.

The taxpayer s reliance on an attorney or accountant

D.

The actions were tax avoidance not tax evasion

Question 13

Calvin, an attorney, sends a letter that is protected by a legal professional privilege to Katrina, one of his clients. Upon receiving the letter, Katrina emails it to her coworker who has no need to know the information contained in the letter. Which of the following statements is MOST ACCURATE?

Options:

A.

The privilege might have been waived because Katrina used email to transmit the protected information.

B.

The privilege might have been waived because Katrina transmitted the protected information to a third party who has no need to know the information.

C.

The privilege was not waived by Katrina because the legal professional privilege belongs to the attorney, not the client.

D.

The privilege was not waived because the legal professional privilege cannot be waived by transmitting protected information to a third party.

Question 14

Which of the following statements concerning judgments involving parties in multiple jurisdictions is MOST ACCURATE?

Options:

A.

Whether a foreign judgment is enforceable always depends on where the defendant's assets are located

B.

If a party obtains a judgment in one jurisdiction, that party will automatically be able to enforce the judgment in any jurisdiction

C.

If a party obtains a judgment in one jurisdiction, that party will automatically be able to enforce the judgment wherever the defendant resides

D.

Whether a foreign judgment is enforceable might depend on whether the two jurisdiction have an enforcement treaty

Question 15

Before Monique’s criminal trial for embezzlement, she contacts witnesses against her and offers to pay them if they change their stories regarding the embezzlement. Monique’s actions would MOST LIKELY cause the government to bring additional charges against her for:

Options:

A.

Obstruction of justice

B.

Conspiracy to influence the court

C.

Fraudulent misrepresentation

D.

Judicial extortion

Question 16

Which of the following statements regarding civil lawsuits in most jurisdictions is CORRECT?

Options:

A.

The plaintiffs initial filing does not typically need to contain a summary of the evidence

B.

Civil lawsuits begin with the filing of a pleading, usually in the jurisdiction in which the defendant resides or where the claim arose

C.

The plaintiff’s initial filing with the court does not typically need to include the specific facts on which the claim relies.

D.

All of the above are correct

Question 17

Which of the following is NOT an element that is generally required to establish a claim alleging the common law civil wrong for intentional infliction of emotional distress?

Options:

A.

The defendant acted intentionally or recklessly.

B.

The victim's distress occurred for at least two years.

C.

The defendant engaged in extreme and outrageous conduct.

D.

The victim suffered distress due to the defendant's conduct.

Question 18

Which of the following examples of judicial systems would BEST be described as a civil law system?

Options:

A.

The courts are allowed to consider both codified statutes and previous court decisions but are bound by neither

B.

The courts are bound by both previous court decisions and codified principles or statutes

C.

The courts are bound primarily by previous court decisions to reserve legal issues

D.

The courts are bound by codified principles or statures but are not bound by previous court decisions

Question 19

Which of the following statements concerning civil trials in common law jurisdictions is MOST ACCURATE?

Options:

A.

Civil jury trials must have the same number of jurors as in criminal jury trials.

B.

Neither side may appeal an adverse judgment in a civil case

C.

Jury verdicts m civil trials must always be unanimous

D.

in most civil cases, the standard of proof is the preponderance of the evidence

Question 20

Which of the following is a red flag that might be indicative of an entity operating a security business without the proper license or registration?

Options:

A.

There are justified gaps in the work history of promoters at the entity.

B.

The entity is known to have a history of regulatory problems.

C.

There is a lack of customer complaints against the entity.

D.

The entity's website contains detailed background information.

Question 21

Which of the following statements concerning alternative remittance systems is INCORRECT?

Options:

A.

The systems are not necessarily illegal.

B.

Funds are sent and received without the use of traditional financial institutions.

C.

The systems are characterized by a lack of physical or digital transfer of currency between payers and payees.

D.

The ledgers used typically contain information regarding payers and payees, such as names and account numbers.

Question 22

Which of the following would be direct evidence that the criminal defendant a former cashier for a home improvement store committed a cash larceny scheme that resulted in the theft of more than $5 000 from the store?

Options:

A.

A diagram is used to display the location of the store's registers

B.

A witness testifies that they saw the defendant take the money

C.

A witness testifies that the defendant was almost always the last cashier to leave the store

D.

A coworker testifies that the defendant was acting nervously the day the money was taken

Question 23

Which of the following is the MOST ACCURATE statement about the litigation privilege in common law jurisdictions?

Options:

A.

The primary purpose of the litigation privilege is to protect confidential communications between a client and the client's legal representative

B.

The litigation privilege only protects documents and materials prepared by an attorney

C.

The litigation privilege applies only while a trial is underway

D.

The litigation privilege applies only to documents and materials prepared in anticipation of litigation

Question 24

Dodd is a Certified Fraud Examiner (CFE) who works for Weathervane, a private company Dodd suspects that Burton a Weathervane employee has embezzled money from the company Dodd plans to conduct an internal investigation into the missing funds Based on these facts which of the following is the MOST ACCURATE statement?

Options:

A.

Burton has a duty to cooperate with the investigation even if what is requested from him is not reasonable

B.

Burton can refuse to cooperate with the investigation because he has a fundamental right to privacy

C.

Burton likely has a duty to cooperate with the investigation as part of the employer-employee relationship

D.

Burton can refuse to cooperate with the investigation because he has a fundamental right to remain silent

Question 25

Country A's government requires financial institutions to report all instances of a customer depositing or withdrawing more than $10,000 in a day. To avoid attention regarding his illicit assets, James deposits $9,000 each day. In which of the following schemes is James engaging?

Options:

A.

Mobile payment scheme

B.

Integration scheme

C.

Reverse deposit scheme

D.

Structuring scheme

Question 26

Which of the following is a method of disguising money acquired from illegal sources by recording more income on a business's books than the business actually generates?

Options:

A.

Overstating revenues

B.

Reporting real estate purchases

C.

Recording but not depositing revenue

D.

None of the above

Question 27

Ramona is investigating Eugene for misconduct Ramona and Eugene both work for Elek-Tek, which operates in a jurisdiction with evil laws for defamation, invasion of privacy and conflict of interest During the investigation Ramona obtained ^formation that Eugene is cheating on his spouse Ramona to a large group of Elek-Tek employees that Eugene was committing adultery, which turned out to be true Which cause of action would give Eugene the BEST chance for success m a civil suit against Ramona?

Options:

A.

Conflict of interest

B.

Defamation

C.

Public disclosure of private facts

D.

Slander

Question 28

All of the following are methods of pretrial civil discovery commonly found in common law jurisdictions EXCEPT:

Options:

A.

Affidavits of documents or records

B.

Written examinations

C.

Injunctions

D.

Oral examinations

Question 29

Which of the following is generally one of the goals of deferred prosecution agreements?

Options:

A.

To help reduce the risk of future illegal practices by an organization accused of misconduct.

B.

To save trial resources by getting the defendant to plead guilty to a less serious offense.

C.

To postpone prosecution until a company conducts an adequate internal investigation.

D.

To increase the likelihood of conviction if a company is accused of subsequent misconduct.

Question 30

XYZ Company sued Faith to recover damages based on a claim of misappropriation of funds. In the same civil proceeding, Faith sued XYZ for false imprisonment that allegedly occurred during an interview. In this situation, the claim by Faith against XYZ Company can BEST be described as a:

Options:

A.

Reverse action

B.

Parallel proceeding

C.

Counterclaim

D.

Cross-claim

Question 31

Which of the following scenarios MOST ACCURATELY represents a suitability violation in a jurisdiction that imposes a suitability requirement on broker-dealers?

Options:

A.

A broker-dealer is unfamiliar with their client's risk appetite, so they refuse to make any investments on the client's behalf without additional information.

B.

A broker-dealer learns about a promising investment and recommends it to their new client without knowing the client's relevant personal and financial information.

C.

A broker-dealer makes an extremely conservative recommendation to a client that aligns with their risk profile and financial information.

D.

A broker-dealer makes an investment for a client without first obtaining the client's approval to make that specific transaction on their behalf.

Question 32

Which of the following is NOT an element generally required to establish a claim alleging the common law civil wrong for intentional infliction of emotional distress?

Options:

A.

The defendant acted intentionally or recklessly

B.

The victim was an employee of the defendant

C.

The victim suffered distress as a result of the defendants conduct

D.

The defendant engaged in extreme and outrageous conduct

Question 33

According to the Organisation for Economic Co-operation and Development’s OECD Recommendation on Combating Bribery in International Business, member states are encouraged to combat the bribery of foreign public officials by improving which of the following primary areas within their respective infrastructures?

Options:

A.

Initiatives related to stronger data protection

B.

Criminal, civil, commercial, and administrative laws

C.

E-commerce business practices and regulations

D.

Regulations related to the public’s health and safety

Question 34

The________________requires that an employee act solely in the best interest of their employer, free of any serf-dealing, conflicts of interest, or other abuse that results in a personal advantage

Options:

A.

Duty of care

B.

Duty of responsibility

C.

Duty of employee trust

D.

Duty of loyalty

Question 35

Which of the following can affect the rights that employees may have during an internal investigation?

Options:

A.

Existence of fraud risk factors

B.

Existence of violation red flags

C.

Existence of interstate compacts

D.

Existence of an employment contract

Question 36

Each day, Rachel purchases $14 500 in bearer instruments with cash from a bank where all currency transactions above 515,000 must be reported to the government Rachets actions are a red flag of which of the following schemes'?

Options:

A.

Channel stuffing

B.

Alternative remittance system

C.

Structuring

D.

Real estate laundering

Question 37

Cory has been charged with lax evasion for filing a false tax return. As a defense, Cory claims that he made an honest mistake due to the tax law's complexity, and he did not intentionally submit an incorrect tax return If the court finds that his mistake was in good faith the most likely will NOT be found to have "willfully'" engaged m fraudulent actions to avoid reporting or paying his taxes.

Options:

A.

True

B.

False

Question 38

Which of the following is TRUE in regard to authenticating evidence in most common law systems?

Options:

A.

Digital records cannot be authenticated by testimony from a witness with personal knowledge

B.

For evidence to be authenticated it must be reviewed and voted on by a jury

C.

Exhibits that cannot be authenticated will not be admitted regardless of relevance

D.

The purpose of authentication is to ensure that hearsay is not admitted into evidence

Question 39

Jackson believes he has a legal cause of action against Alice, who lives in a foreign country. The fact that Jackson is the plaintiff allows him to bring the lawsuit against Alice in any court in the country where he lives.

Options:

A.

True

B.

False

Question 40

Allison works for a government contractor She informs the government that her employer has been submitting false claims to the government for payment Later it is discovered that Allison has misappropriated more than $50,000 of her employer's money Alison qualifies as a whistleblower entitled to anti-retaliation protection under the law because of her report to the government Which of the following statements about Allison is CORRECT?

Options:

A.

Allison cannot be fired for misappropriating funds from her employer

B.

Allison cannot be fired for any reason

C.

Alison cannot be fired for informing the government of her employee’s fraud

D.

None of the above

Question 41

Which of the following situations would constitute a violation of the US Foreign Corrupt Practices Act (FCPA)

Options:

A.

A private U.S company pays a S2.000 foreign corporation fee that is required in order to do business within the country

B.

A private UK company transfers $25,000 to a Chilean public official to influence the award of lucrative overseas contracts.

C.

A private U S company transfers $45,000 to a foreign official to influence the award of a public construction contract.

D.

A private U.S company transfers $100,000 to the sole proprietor of a Brazilian company to influence the award of a commercial imports contract.

Question 42

Which of the following is the MOST ACCURATE statement about the UK Bribery Act?

Options:

A.

Like the FCPA the UK Bribery Act contains an explicit exception for facilitating payments

B.

Even if an organization's anti-corruption program complies with the FCPA, it might not be sufficient for the purpose of complying with the UK Bribery Act

C.

Unlike the FCPA. the UK Bribery Act makes it a crime to bribe a foreign public official in connection with international business transactions

D.

The UK Bribery Act only exercises jurisdiction over individuals and corporate entities for acts of corruption when the offense occurs outside the United Kingdom

Question 43

The Financial Action Task Force (FATF) Recommendations advise countries to do all of the following EXCEPT:

Options:

A.

Use a risk-based approach when setting anti-money laundering policies

B.

Require financial institutions to keep certain records and establish anti-money laundering policies.

C.

Require financial institutions to monitor their customers' political affiliations.

D.

Enable authorities to trace freeze, and confiscate assets suspected in money laundering and terrorist financing

Question 44

Which of the following statements concerning the appointment of expert witnesses at that is accurate?

Options:

A.

Generally, the court appoints the primary expert witnesses in inquisitorial jurisdictions.

B.

Generally, only the parties may select expert witnesses in inquisitor jurisdictions

C.

Generally the court selects the primary expert witnesses in adversarial jurisdictions

D.

Generally, only the parties may select experts to introduce testimony in adversarial jurisdictions

Question 45

Antonio is investigating Sam on behalf of their employer, XYZ Company. During the investigation, Antonio tells a group of their coworkers who are not involved in the investigation that he discovered Sam has a serious gambling addiction, which is true. Assuming that their jurisdiction has civil laws for all of the following causes of action, which one would give Sam the BEST chance for success if he decides to bring a civil action against Antonio?

Options:

A.

Public disclosure of private facts

B.

Negligent misrepresentation

C.

Slander

D.

Defamation

Question 46

Company A used Company B to recover damages for the breach of a contract. In the same proceeding. Company B sought damages for an allegation that Company A fraudulently induced Company B into entering the contract. In this case, what would Company B's claim against Company A be called?

Options:

A.

Counterclaim

B.

Collateral attack

C.

Reversal

D.

Cross-claim

Question 47

The concealment of assets occurs most commonly in which of the following types of fraud schemes?

Options:

A.

Bankruptcy fraud

B.

Fictitious revenues

C.

Payroll fraud

D.

Income smoothing

Question 48

A custodial arrest occurs when a law enforcement officer informs the suspect of their rights as a criminal defendant

Options:

A.

True

B.

False

Question 49

The same customer comes into a casino each day and deposits a large amount of cash into an account but after very little gambling the customer withdraws the funds The casino employees suspect that the customer may be engaged in money laundering activity Assuming that the anti-money laundering (AML) regulations that govern the casino’s activities correspond to the Financial Action Task Force (FATF) Recommendations the casino:

Options:

A.

May, but is not required to file a report of suspicious transactions related to possible money laundering with appropriate authorities

B.

May not file a report of suspicious transactions related to potential criminal activity with appropriate authorities

C.

Is required to file a report of suspicious transactions with appropriate authorities because the employees suspect money laundering violations

D.

Is required to file a cash transaction report for possible criminal activity with appropriate authorities because cash was involved

Question 50

In most civil law jurisdictions which of the following BEST describes when a party is required to begin taking steps to preserve and produce relevant evidence?

Options:

A.

When the court orders such steps to be taken

B.

When litigation has started

C.

When the party receives a service of process

D.

When the charging documents are filed

Question 51

Which of the following would be direct evidence that an employee committed a cash larceny scheme that resulted in the theft of $800 from their employer's safe?

Options:

A.

A coworker states that the employee appeared to be nervous on the day of the theft.

B.

A diagram is used to display the location of the employer's safe.

C.

A witness testifies that they saw the employee take the money.

D.

A witness testifies that the employee was usually the last person to leave the office.

Load More CFE-Law Questions
Page: 1 / 17
Total 171 questions
Get CFE-Law Full Access Download CFE-Law PDF