ACFE CFE-LAW Online Practice Questions and Exam Preparation

ACFE CFE-LAW Online Questions & Answers

• Question 1:

  At the end of a civil proceeding, the court finds the defendant, a company, liable and orders it to pay a large sum of money to compensate for the plaintiff's losses. Which of the following BEST describes this type of remedy?

  A. Declaratory relief
  B. Equitable relief
  C. Damages
  D. Injunction
  C. Damages

• Question 2:

  Which of the following describes the purpose of an expert witness's testimony at trial?

  A. To offer an opinion as to a party's guilt or innocence
  B. To give a firsthand account of the facts of the case on the record
  C. To give an opinion when the fact finder needs specialized knowledge
  D. None of the above
  B. To give a firsthand account of the facts of the case on the record

• Question 3:

  Which of the following is NOT an element that must be proven to establish a perjury offense?

  A. The defendant made a false statement that was material.
  B. The defendant made a false statement in a court of law.
  C. The defendant made a false statement while under oath.
  D. The defendant made the statement with knowledge of its falsity.
  B. The defendant made a false statement in a court of law.

• Question 4:

  In most civil law jurisdictions, which of the following BEST describes when a party's requirement to take steps to preserve and produce relevant evidence arises?

  A. When the charging documents are filed
  B. When the party receives a service of process
  C. When litigation is reasonably anticipated
  D. When the court orders such steps to be taken
  D. When the court orders such steps to be taken

• Question 5:

  Which of the following is the MOST ACCURATE statement about the different types of alternative dispute resolution?

  A. In an arbitration proceeding, the arbitrator acts as a judge or jury by deciding the dispute at issue on its merits.
  B. The decisions reached in all arbitrations are always binding.
  C. The agreements reached in mediations are generally nonbinding.
  D. In a mediation session, the mediator decides who should win the dispute at issue.
  B. The decisions reached in all arbitrations are always binding.

• Question 6:

  Which of the following statements concerning digital currencies, such as bitcoin, is MOST ACCURATE?

  A. Digital currencies are attractive to money launderers because they are a payment method that provides complete anonymity.
  B. Digital currencies are attractive to money launderers because payments often cross jurisdictional boundaries, making it difficult for authorities to pursue enforcement.
  C. Digital currencies are not typically used to launder money due to strict customer identification or recordkeeping requirements enforced in all jurisdictions.
  D. Digital currencies are subject to all of the same regulations as payments made through traditional financial institutions.
  A. Digital currencies are attractive to money launderers because they are a payment method that provides complete anonymity.

• Question 7:

  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:

  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 cash transaction report for possible criminal activity with appropriate authorities because cash was involved
  D. Is required to file a report of suspicious transactions with appropriate authorities because the employees suspect money laundering violations
  A. May, but is not required to, file a report of suspicious transactions related to possible money laundering with appropriate authorities

• Question 8:

  Company A sued 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?

  A. Collateral attack
  B. Reversal
  C. Counterclaim
  D. Cross-claim
  C. Counterclaim

• Question 9:

  The __________ requires that an employee act solely in the best interest of their employer, free of any self-dealing, conflicts of interest, or other abuse that results in a personal advantage.

  A. Duty of responsibility
  B. Duty of care
  C. Duty of employee trust
  D. Duty of loyalty
  D. Duty of loyalty

• Question 10:

  Claude stole a large amount of cash from his employer and then deposited the funds into a domestic bank account. Next, he wired the illicit funds to a foreign bank account and engaged in several other transactions using foreign accounts to make them difficult to trace. Finally, he transferred the funds back to a domestic account and then spent the money. Which of the following actions was the layering stage of Claude's money laundering scheme?

  A. When he first deposited the funds into a domestic account
  B. When he spent the money
  C. When he moved the funds through several transactions using foreign accounts
  D. When he first stole the cash from his employer
  C. When he moved the funds through several transactions using foreign accounts