ACFE CFE Certifications CFE-LAW Questions & Answers

• Question 11:

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

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

  B. A currency exchange is classified as an MSB.

  C. MSBs are generally less strictly regulated than traditional financial institutions.

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

  Correct Answer: C

• Question 12:

  Which of the following schemes involves disguising money from illegal nonbusiness sources by recording more income on a business's books than the business actually generates?

  A. Overstating revenues

  B. Structured deposits

  C. Trade-based laundering

  D. None of the above

  Correct Answer: A

• Question 13:

  Which of the following is the MOST ACCURATE statement about self-regulatory organizations (SROs) in the securities industry?

  A. In some jurisdictions, SROs establish the standards and rules under which members of the securities industry operate.

  B. An SRO generally has sole regulatory authority over the securities industry in the jurisdiction in which it operates.

  C. In most jurisdictions, SROs are prohibited from participating in the resolution of disputes related to securities transactions.

  D. An SRO is a governmental entity that exercises regulatory authority over the securities industry in its jurisdiction.

  Correct Answer: A

• Question 14:

  If Mary uses legal means to lower her tax bill through legitimate deductions and credits, she is engaging in tax evasion.

  A. True

  B. False

  Correct Answer: B

• Question 15:

  During a trial in an adversarial system, an attorney calls an expert witness to the stand and asks, "Could you please describe the procedures you performed in your examination?" Based on this question, which type of testimony is MOST LIKELY being presented?

  A. Request for admission

  B. Cross-examination

  C. Impeachment

  D. Direct examination

  Correct Answer: B

• Question 16:

  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

• Question 17:

  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.

  Correct Answer: B

• Question 18:

  Which of the following is NOT one of the elements that the government must prove to establish a violation of a law criminalizing false statements to government agencies?

  A. The defendant made a false statement.

  B. The defendant knew the statement was false.

  C. The false statement was material.

  D. The government relied on the false statement.

  Correct Answer: A

• Question 19:

  Which of the following situations would constitute a violation of the U.S. Foreign Corrupt Practices Act (FCPA)?

  A. A private U.S. company pays a $2,000 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: C

• Question 20:

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

  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 plaintiffs 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.

  Correct Answer: C