ACFE CFE Certifications CFE-LAW Questions & Answers

• Question 41:

  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.

  Correct Answer: B

• Question 42:

  Nora, a health care provider, is convicted of health care fraud in criminal court. After her conviction, the national health agency begins a proceeding to prohibit Nora from seeking reimbursement from government health care programs for five years. Which type of administrative penalty is the national health agency seeking?

  A. License revocation

  B. License suspension

  C. Disenfranchisement

  D. Debarment

  Correct Answer: D

• Question 43:

  Which of the following is NOT a right of the accused under the United Nations' (UN) International Covenant on Civil and Political Rights (ICCPR)?

  A. Right to be presumed innocent until proven guilty

  B. Freedom from arbitrary arrests

  C. Right of the accused to be informed of criminal charges

  D. Right to a trial by jury

  Correct Answer: D

• Question 44:

  Which of the following typically does NOT have to be present for communications between an attorney and the attorney's client to be protected by a legal professional privilege?

  A. Communication between a legal advisor and a client

  B. Purpose of the communications was to seek or provide legal advice

  C. A lawsuit has been filed

  D. Intent to keep the communications confidential

  Correct Answer: D

• Question 45:

  Under the World Bank Principles for Effective Insolvency and Creditor/Debtor Regimes (World Bank Principles); which of the following parties should administer the debtor's estate in liquidation bankruptcy proceedings?

  A. The jurisdiction's commerce department or equivalent agency

  B. An independent insolvency representative

  C. The debtor, supervised by an independent insolvency representative

  D. The creditor with the largest claim against the debtor

  Correct Answer: B

• Question 46:

  Which of the following statements about the International Organization of Securities Commissions (IOSCO) is TRUE?

  A. IOSCO is recognized as the international standard-setter for securities markets.

  B. IOSCO is an oversight body responsible for issuing and enforcing regulations that govern all international securities markets.

  C. IOSCO provides a forum for regular cooperation on banking supervisory matters affecting developing nations.

  D. IOSCO is a self-regulatory organization for companies that have securities traded on international securities markets.

  Correct Answer: A

• Question 47:

  A. The employee was acting within the scope of their employment.

  B. Management was directly involved with the offense.

  C. Management knew of the underlying offense but did not correct it.

  D. The corporation had previous violations of a similar nature.

  Correct Answer: B

• Question 48:

  Which of the following statements about the appeals process in criminal cases is MOST ACCURATE?

  A. Appellate courts will usually reverse a conviction even if the trial court's error did not affect the outcome of the case.

  B. In civil law jurisdictions, appellate courts are generally not permitted to make their own legal conclusions when reviewing a case.

  C. Appellate courts will usually hear an appeal even if the petition was not filed in a timely manner.

  D. In common law jurisdictions, appellate courts are generally not permitted to make their own factual

  determinations when reviewing a case.

  Correct Answer: A

• Question 49:

  Which of the following is a legal element that the government must show to prove a criminal conspiracy?

  A. The defendant knew all the details or objectives of the conspiracy.

  B. The defendant knew the identity of all the participants in the conspiracy.

  C. One of the conspirators knowingly committed an overt act in furtherance of the conspiracy.

  D. The conspirators accomplished the purpose of the conspiracy that was initially established.

  Correct Answer: A

• Question 50:

  Which of the following is a red flag that an entity is operating a security business without the proper license or registration?

  A. There is an unexplained absence of customer complaints against the entity.

  B. The entity's website contains detailed background information.

  C. The agents working at the entity have criminal records.

  D. There are justified gaps in the work history of promoters at the entity.

  Correct Answer: D