ACFE CFE-Law Exam Dumps

Certified Fraud Examiner (CFE) - Law

ACFE CFE-Law Sample Questions

Question # 1

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

A. Overstating revenues 
B. Reporting real estate purchases 
C. Recording but not depositing revenue 
D. None of the above 

Answer: A

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Question # 2

Which of the following statements regarding using front businesses as a method of laundering money is MOST ACCURATE? 

A. Front businesses are a favored method because it is easy to match the costs associated with providing customers food, liquor, and entertainment with the revenues produced. 
B. Bars, restaurants, and nightclubs are commonly used as front businesses because these venues tend to charge relatively low prices and customers rarely vary in their purchases.
C. Front businesses can often be detected because these businesses have a large number of customers during peak operating hours and high income. 
D. A front business that conducts legitimate business can provide cover for delivery and transportation related to illegal activity. 

Answer: D

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Question # 3

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

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. 

Answer: B

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Question # 4

Lorna is an employee at Victorian Inc., a private company in a jurisdiction in which thepublic has the legal right to be free from unreasonable search and seizure by governmentauthorities. Management suspects that Lorna is misappropriating funds from the company,so it instructs Charlie, an investigator employed by Victorian, to search Lorna’s companyissued laptop. Charlie finds incriminating evidence on Lorna’s laptop and gives it to law enforcement. However, by failing to obtain a search warrant before conducting his search,Charlie violated Lorna’s rights.

A. True 
B. False 

Answer: B

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Question # 5

Which of the following schemes involves disguising money from illegal nonbusinesssources by recording more income on a business's books than the business actuallygenerates?

A. Overstate revenues 
B. Structured deposits 
C. Trade-based laundering 
D. None of re above 

Answer: A

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Question # 6

Suri is conducting a fraud examination in a country where courts apply laws from codifiedstatutes to each case and their decisions are not bound by similar court decisions fromprevious cases. This type of judicial system is best known as a:

A. Codified law system 
B. Common law system 
C. Statutory law system 
D. Civil law system 

Answer: D

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Question # 7

Which of the following statements regarding the qualifications of expert witnesses in mostinquisitorial jurisdictions is CORRECT?

A. Certification in a specific field is always enough to qualify an expert 
B. An excerpt is not qualified to testify unless all parties to the litigation approve 
C. Experts are generally prohibited from serving as expert witnesses in multiple cases 
D. The qualification of an expert is generally based on standardized requirements 

Answer: D

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Question # 8

Evidence that tends to make some tact at issue more or less likely than it would be without the evidence is called: 

A. Circumstantial evidence 
B. Testamentary evidence 
C. Demonstrative evidence 
D. Relevant evidence 

Answer: D

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Question # 9

Which of the following statements concerning examinations of expert witnesses in mostinquisitorial jurisdictions is accurate?

A. Both the parties and the judge may determine how much consideration should be givento an expert's testimony.
B. Both the parties and the judge may question an expert's credibility. 
C. Only the parties are allowed to make objections regarding an expert's biases. 
D. Only the judge is allowed to question the expert's analysis and the methods that they used in their determinations.

Answer: B

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Question # 10

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

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 

Answer: B

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Question # 11

In common law jurisdictions, which of the following scenarios would MOST LIKELY result insanctions for an organization for failing to preserve evidence?

A. An employee intentionally destroys a relevant document prior to the companyannouncing the possibility of litigation.
B. An employee unintentionally alters a digital document that is not directly relevant to anypotential litigation that the company has announced to its staff.
C. An employee accidentally deletes a digital document that is relevant to litigation after thecompany announces that such litigation is a possibility.
D. An employee abstains from destroying a document relevant to an ongoing proceedingeven though this act violates the company's document retention policy.

Answer: A

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