ACFE CFE Certifications CFE-LAW Questions & Answers

• Question 81:

  All of the following are common legal defenses for tax evasion EXCEPT:

  A. Mental illness of the taxpayer

  B. The actions were tax avoidance, not tax evasion

  C. Death of the taxpayer

  D. The taxpayer's reliance on an attorney or accountant

  Correct Answer: C

• Question 82:

  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

  Correct Answer: D

• Question 83:

  A business files for bankruptcy with the goal of obtaining relief from creditors so that it can rearrange its financial affairs and continue as a going concern. Which of the following describes this type of bankruptcy proceeding?

  A. Debt dismissal bankruptcy

  B. Liquidation bankruptcy

  C. Reorganization bankruptcy

  D. Debt adjustment bankruptcy

  Correct Answer: B

• Question 84:

  Each day, Rachel purchases $14,500 in bearer instruments with cash from a bank where all currency transactions above $15,000 must be reported to the government. Rachel's actions are a red flag of which of the following schemes?

  A. Real estate laundering

  B. Structuring

  C. Alternative remittance system

  D. Channel stuffing

  Correct Answer: B

• Question 85:

  Ramona is investigating Eugene for misconduct. Ramona and Eugene both work for ABC Company, which operates in a jurisdiction with civil laws for defamation, invasion of privacy, and conflict of interest. During the investigation, Ramona obtained information that Eugene is cheating on his spouse. Ramona told a large group of ABC Company employees that Eugene was committing adultery, which turned out to be true. Which cause of action would give Eugene the BEST chance for success in a civil suit against Ramona?

  A. Defamation

  B. Conflict of interest

  C. Public disclosure of private facts

  D. Slander

  Correct Answer: C

• Question 86:

  In most civil law systems, which of the following parties typically serves as the fact finder in criminal proceedings?

  A. A panel of court-appointed attorneys

  B. A jury

  C. A panel comprised of laypersons

  D. A judge

  Correct Answer: B

• Question 87:

  Which of the following is NOT required for a contract, transaction, or scheme to be classified as an investment contract?

  A. Investment in a common enterprise

  B. The expectation of making a profit

  C. An investment of money or another asset

  D. Profits derived solely from the investor's management activity

  Correct Answer: D

• Question 88:

  Which of the following statements regarding the qualifications of expert witnesses in most inquisitorial jurisdictions is CORRECT?

  A. The qualification of an expert is generally based on standardized requirements.

  B. An expert is not qualified to testify unless all parties to the litigation approve.

  C. Certification in a specific field is always enough to qualify an expert.

  D. Experts are generally prohibited from serving as expert witnesses in multiple cases.

  Correct Answer: A

• Question 89:

  Davis is an employee at Waccamaw Homeplace, a publicly traded corporation. Davis knows that Waccamaw is about to publicly announce a new joint venture project in China, so he buys shares of Waccamaw stock. Assuming that his conduct was illegal in the jurisdiction in which he works and resides, what type of crime did Davis MOST LIKELY commit?

  A. Insider trading

  B. Trading on margin

  C. Futures fraud

  D. Churning

  Correct Answer: A

• Question 90:

  Raj is an employee who works in a jurisdiction that prohibits unreasonable workplace searches and surveillance in areas or items where employees have a reasonable expectation of privacy. In which of the following is Raj MOST LIKELY to have a reasonable expectation of privacy?

  A. A filing cabinet in the office lobby

  B. A waste bin in the employee's office

  C. A company-issued tablet computer

  D. A backpack brought from home

  Correct Answer: A