Certified Fraud Examiner - CFE-Law Exam Practice Test

Question 1

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.

A. True

B. False

Correct Answer: A

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Question 2

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

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

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

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

Correct Answer: D

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Question 3

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

A. The judge is not allowed to question the expert ' s credibility under any circumstance

B. The parties determine the extent of consideration to be given to the expert ' s testimony

C. The parties are often allowed to question the expert ' s methods and analysis

D. The expert has the discretion to determine the scope of the examinations

Correct Answer: C

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Question 4

An attorney hires a fraud examiner to work on an embezzlement case. In connection with the case, the attorney emails the fraud examiner a copy of a memorandum that is protected by a legal professional privilege. Which of the following statements is most accurate?

A. The attorney waived the privilege because they transmitted the protected information to a third party.

B. The attorney waived the privilege because they used email to transmit the protected information.

C. The attorney did not waive the privilege because the attorney hired the fraud examiner to work on the case.

D. The attorney did not waive the privilege because the legal professional privilege belongs to the client, not the attorney.

Correct Answer: C

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Question 5

Lorna is an employee at Victorian Inc., a private company in a jurisdiction in which the public has the legal right to be free from unreasonable search and seizure by government authorities. Management suspects that Lorna is misappropriating funds from the company, so it instructs Charlie, an investigator employed by Victorian, to search Lorna's company-issued 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

Correct Answer: B

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Question 6

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

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 currency exchange is classified as an MSB.

D. A check cashing company is classified as an MSB.

Correct Answer: B

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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?

A. The defendant made a false statement

B. The victim did not exercise due care in relying on the representation.

C. The victim suffered damages because of the misrepresentation.

D. The victim relied on the misrepresentation.

Correct Answer: B

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Question 8

Bob owns a struggling business called Luxury Rentals that has ten luxury vehicles. A week before Luxury Rentals files for bankruptcy, Bob transfers ownership of one of the vehicles to his wife. Which type of fraud scheme has Bob most likely committed?

A. A fraudulent bankruptcy

B. A fraudulent conveyance

C. A concealed transfer

D. A planned bustout

Correct Answer: B

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Question 9

After the government charged Angel with money laundering, he forcibly entered his accountant's office and destroyed incriminating documents. Angel's actions would most likely cause the government to bring additional charges against him for:

A. Misappropriation of evidence

B. Obstruction of justice

C. Fraudulent misrepresentation

D. Conspiracy to influence the court

Correct Answer: B

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Question 10

Each of the following statements concerning cross-examination of witnesses in adversarial jurisdictions is accurate EXCEPT:

A. One of the goals of cross-examination is to discredit the witness's testimony.

B. If opposing counsel asks a very complex question, then the witness should ask for the question to be rephrased.

C. During cross-examination, opposing counsel is mostly concerned with discovering information that was previously undiscovered in the case.

D. Opposing counsel will generally cross-examine a witness only if it would help the case.

Correct Answer: C

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ACFE Certified Fraud Examiner - CFE-Law Exam Practice Test

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