ACFE CFE-Law Certified Fraud Examiner (CFE) - Law Exam Exam Practice Test Questions

• Question 1

  Grant, a fraud examiner is investigating Beatrice for embezzlement on his employer's behalf. During his investigation. Grant learns that Beatrice has cheated on her spouse and he tells several of Beatrice's coworkers about it Beatrice discovers that Grant revealed the unflattering (albeit true) information about her and decides to file a claim of defamation against Grant. Which of the following is the BEST explanation of why Beatrice will not win her defamation case?

  • The information was true
  • The communications to the subject's coworkers were privileged
  • The news was not communicated to enough people
  • The statement was not printed and distributed

  Show Answer Answer: A Next

• Question 2

  Which of the following statements concerning front businesses as a method of laundering money is the LEAST ACCURATE?

  • A red flag of a front business is the observation of a large number of customers during peak operating hours
  • Front businesses provide cover for delivery and transportation related to illegal activity
  • From criminals' perspective a disadvantage to front businesses is that they generally must pay taxes on the illicit income
  • Front businesses benefit launderers by providing a safe place to manage criminal activities

  Show Answer Answer: A Next

• Question 3

  A prosecutor died criminal charges against Rosa calming that she stole Juan's personal information and sold his identity on the dark web Juan wants to file a civil lawsuit against Rosa to recover damages arising from the identity theft Can Juan file the civil action before the criminal action against Rosa is completed?

  • Yes, the evil action can be filed if the jurisdiction permits parallel proceedings.
  • No, the civil action cannot be filed if the jurisdiction prohibits counterclaims.
  • Yes, the evil action can be filed if the jurisdiction permits analogous cairns.
  • No, the civil action cannot be filed if the jurisdiction prohibits double jeopardy.

  Show Answer Answer: A Next

• Question 4

  To determine if a misrepresentation in the offer or sale of any securities is material a fraud examiner should answer which of the following questions?

  • "Did the person who made the representation believe that it was suitable for potential investors?"
  • "Was the misrepresentation made by an authorized individual?"
  • "Would a reasonable investor wish to know the information to make an informed decision?"
  • ''Did the person who made the representation intend to mislead potential investors?

  Show Answer Answer: C Next

• Question 5

  In common law jurisdictions failing to suspend routine destruction of electronic data can result in sanctions for failure to preserve relevant evidence

  • True
  • False

  Show Answer Answer: B Next