Free ACFE CFE-Fraud-Investigations-and-Legal-Issues Practice Test & Real Exam Questions

Exam Code/Number: CFE-Fraud-Investigations-and-Legal-Issues
Exam Name/Title: Certified Fraud Examiner (CFE) - Fraud Investigations and Legal Issues
Certification Provider: ACFE
Corresponding Certification: Certified Fraud Examiner

Exam Questions: 511
Updated On: Jul 06, 2026

Question #61

Which of the following is NOT an advantage to using link analysis in a fraud investigation?

A. Link analysis visually displays financial ratio analysis

B. Link analysis allows the investigator to discover patterns in data.

C. Link analysis helps identify indirect relationships with several degrees of separation.

D. Link analysis is an affective tool to demonstrate complex networks

Discussion 0

Correct Answer: A Vote an answer

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Question #62

When documenting interviews, it is best practice for the interviewer to.

A. Note impressions regarding the subject ' s guilt or innocence.

B. Write down verbatim all the information that the subject provides

C. Err on the side of taking too few notes rather than too many.

D. Covertly record all interviews with potential suspects.

Discussion 0

Correct Answer: C Vote an answer

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Question #63

Leslie, a fraud examiner for ACME Corporation, suspects that a salesperson for another company has defrauded ACME. Leslie wants to obtain a copy of the suspect individual ' s credit report and personal data from a third-party information broker If Leslie works in a jurisdiction that regulates the distribution of personal credit information, she generally can obtain the information if she has the consent of the individual.

A. False

B. True

Discussion 0

Correct Answer: B Vote an answer

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Question #64

Juniper is found guilty of skimming cash from her employer. Based on testimony from Juniper's friends and family about her character, Juniper is sentenced to supervision by a government agent for a year in place of incarceration. Which of the following options BEST describes Juniper's sentence?

A. Deferred prosecution agreement.

B. Indeterminate sentence.

C. Probation.

D. Determinate sentence.

Discussion 0

Correct Answer: C Vote an answer

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Question #65

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

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

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

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

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

Discussion 0

Correct Answer: B Vote an answer

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Question #66

In jurisdictions that allow criminal bargaining agreements the defendant ' s counsel generally has the discretion to determine whether a bargaining agreement is available to the defendant.

A. False

B. True

Discussion 0

Correct Answer: A Vote an answer

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Question #67

Which of the following is most likely to affect the rights that an employee may have during an internal investigation?

A. Whether the employee has signed a union contract

B. Whether the employee has signed a noncompetition agreement

C. The length of the employee ' s tenure at the organization

D. The likelihood of the employee ' s guilt or innocence

Discussion 0

Correct Answer: A Vote an answer

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Question #68

If your suspect is spending suspected illicit funds on consumables (e.g.. travel and entertainment) and you need to prove their illicit income circumstantially, which of the following methods of tracing assets would yield the BEST result?

A. expenditures method

B. The consumables method

C. The asset method

D. The income method

Discussion 0

Correct Answer: A Vote an answer

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Question #69

Which of the following statements is MOST ACCURATE regarding how a fraud examiner should prepare for an interview with a subject from a different jurisdiction?

A. Failing to observe cultural norms is not a concern if the interviewer is from a different country than the interviewee.

B. A fraud examiner should find out whether the interviewee can insist upon the presence of a legal representative

C. A fraud examiner does not need to research cultural considerations such as appropriate greetings and eye contact.

D. Consulting with legal counsel is only necessary when an investigation spans multiple

Discussion 0

Correct Answer: B Vote an answer

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Question #70

To determine if a misrepresentation in the offer or sale of any securities is material a fraud examiner should answer which of the following questions?

A. " Would a reasonable investor wish to know the information to make an informed decision? "

B. ' ' Did the person who made the representation intend to mislead potential investors?

C. " Did the person who made the representation believe that it was suitable for potential investors? "

D. " Was the misrepresentation made by an authorized individual? "

Discussion 0

Correct Answer: A Vote an answer

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Question #71

A custodial arrest occurs when the suspect is questioned by a law enforcement officer.

A. False

B. True

Discussion 0

Correct Answer: A Vote an answer

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Question #72

An employee submits a reimbursement request to their company for a $250 lunch with a client. Which of the following options would be circumstantial evidence that the employee committed an expense reimbursement scheme?

A. An email authored by the employee is submitted in which they confess to a coworker that the lunch cost less than $250.

B. The restaurant requires reservations and the restaurant's logbook shows no record of the lunch.

C. The client provides testimony that they never had lunch with the employee.

D. The client presents a receipt showing that they paid for the lunch with their own credit card.

Discussion 0

Correct Answer: B Vote an answer

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Question #73

Which of the following is NOT true with regard to tracing the disposition of loan proceeds?

A. Tracing loan proceeds can determine if the proceeds were deposited into hidden accounts.

B. Tracing loan proceeds can uncover previously hidden assets

C. Tracing loan proceeds can identify the presence of internal control weaknesses.

D. Tracing loan proceeds can determine if hidden accounts were used for loan payments

Discussion 0

Correct Answer: C Vote an answer

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Question #74

Which of the following is an example of a trade-based money laundering scheme?

A. A businessperson deposits illicit funds into the bank account of a company they secretly own, which then lends the funds back to them.

B. A drug cartel outside the United States launders illicit funds by hiring runners to deposit small amounts of money in bank accounts throughout the United States.

C. An importer and an exporter conspire to conceal illicit funds by creating invoices that understate the quantity of goods shipped internationally.

D. An accountant overstates a restaurant's revenues to hide illegal funds that are secretly laundered through the business.

Discussion 0

Correct Answer: C Vote an answer

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Question #75

Which of the following statements concerning the appointment of expert witnesses during trial is most accurate?

A. Generally, the parties choose expert witnesses in adversarial jurisdictions, but the court may also appoint experts.

B. Generally, only the court may appoint expert witnesses in adversarial jurisdictions.

C. Generally, the parties are primarily responsible for selecting expert witnesses in inquisitorial jurisdictions.

D. Generally, the jury selects expert witnesses in inquisitorial jurisdictions.

Discussion 0

Correct Answer: A Vote an answer

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