ACFE CFE Certifications CFE-LAW Questions & Answers

• Question 31:

  In most countries, employers must provide notice to their employees before they implement an employee monitoring program.

  A. True

  B. False

  Correct Answer: B

• Question 32:

  In systems using adversarial processes, an attorney may impeach an opposing party's witness by showing that the witness:

  A. Made prior consistent statements

  B. Is influenced by bias or self-interest

  C. Has a keen ability to observe

  D. Testified from personal knowledge

  Correct Answer: D

• Question 33:

  The Financial Action Task Force (FATF) Recommendations advise countries to do all of the following EXCEPT:

  A. Use a risk-based approach when setting anti-money laundering policies.

  B. Enable authorities to trace, freeze, and confiscate assets suspected in money laundering and terrorist financing.

  C. Require financial institutions to monitor their customers' political affiliations.

  D. Require financial institutions to keep certain records and establish anti-money laundering policies.

  Correct Answer: C

• Question 34:

  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

  Correct Answer: D

• Question 35:

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

  A. Front businesses provide cover for delivery and transportation related to illegal activity.

  B. A red flag of a front business is the observation of a large number of customers during peak operating hours.

  C. From criminals' perspective, a disadvantage to front businesses is that they generally must pay taxes on the illicit income.

  D. Front businesses benefit launderers by providing a safe place to manage criminal activities.

  Correct Answer: B

• Question 36:

  During an internal investigation, Todd, a Certified Fraud Examiner (CFE), interviewed Janessa, a fraud suspect. Although Janessa wanted to leave in the middle of the interview, Todd blocked the exit and prevented her from leaving. Janessa subsequently confessed to committing fraud. If, under these facts, Janessa files a lawsuit for false imprisonment against Todd, Todd will likely:

  A. Win the case if he did not know the conduct was illegal

  B. Win the case because he is protected under the qualified business privilege

  C. Lose the case if a trier of fact concludes that he restrained Janessa without consent or legal justification

  D. Lose the case because Janessa did not leave the interview

  Correct Answer: C

• Question 37:

  Which of the following is NOT a requirement of the European Union's (EU) General Data Protection Regulation (GDPR)?

  A. An organization generally must notify all affected data subjects without undue delay when a high-risk data breach occurs.

  B. An organization must confirm or deny that it possesses a data subject's personal data upon that individual's request.

  C. An organization must delete a data subject's personal data automatically when the data are no longer in use.

  D. An organization must obtain a data subject's consent before collecting or processing personal data about that individual.

  Correct Answer: C

• Question 38:

  During a bankruptcy bustout scheme, or planned bankruptcy the debtor committing the fraud typically performs which of the following actions?

  A. Purchases large quantities of goods on credit

  B. Bribes a trustee to overlook assets in the debtor's possession

  C. Conspires with suppliers to produce fraudulent invoices

  D. Colludes with creditors and the trustee to pay some creditors but not others

  Correct Answer: A

• Question 39:

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

  A. Testamentary evidence

  B. Circumstantial evidence

  C. Demonstrative evidence

  D. Relevant evidence

  Correct Answer: D

• Question 40:

  The most common bankruptcy fraud scheme is:

  A. A planned bustout

  B. A credit card bustout

  C. Forged filing

  D. Concealment of assets

  Correct Answer: D