Free ACFE CFE-Law Practice Test & Real Exam Questions, Page 1

Question #1

In common law jurisdictions, which of the following scenarios would MOST LIKELY result in sanctions for an organization for failing to preserve evidence?

A. An employee abstains from destroying a document relevant to an ongoing proceeding even though this act violates the company ' s document retention policy.

B. An employee intentionally destroys a relevant document prior to the company announcing the possibility of litigation.

C. An employee unintentionally alters a digital document that is not directly relevant to any potential litigation that the company has announced to its staff.

D. An employee accidentally deletes a digital document that is relevant to litigation after the company announces that such litigation is a possibility.

Discussion 0

Correct Answer: B Vote an answer

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Question #2

Which of the following is a legal element that must be shown to prove a claim for commercial bribery?

A. The principal suffered damages as a result of the bribe

B. The defendant failed to exercise due care.

C. The defendant gave or received a thing of value.

D. The defendant acted negligently.

Discussion 0

Correct Answer: C Vote an answer

Question #3

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

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

B. Conspires with suppliers to produce fraudulent invoices

C. Purchases large quantities of goods on credit

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

Discussion 0

Correct Answer: C Vote an answer

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Question #4

Robert, a Certified Fraud Examiner (CFE), wants to ensure that the authenticity of the evidence he collected during his investigation is not compromised. His main objective should be to:

A. Limit access to the evidence to judicial officials prior to trial proceedings.

B. Establish a clear chain of custody to show that the evidence has not been altered.

C. Only alter or materially change the evidence himself if absolutely necessary.

D. Prevent all other parties from obtaining physical control of the evidence.

Discussion 0

Correct Answer: B Vote an answer

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Question #5

Which of the following scenarios is an example of the criminal sanction known as criminal forfeiture?

A. As part of her sentence for bribery a defendant is ordered to transfer a car she received as a bribe to the government

B. As part of his sentence for tax evasion, a Defendant is ordered to pay a fine of $10,000 to the government

C. As part of her sentence for money laundering a defendant is sentenced to a three- to five-year term of incarceration

D. As part of his sentence for embezzlement, a defendant is ordered to pay back his employer for the money he stole.

Discussion 0

Correct Answer: A Vote an answer

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Question #6

One of the purposes of securities regulation is to maintain market confidence.

A. False

B. True

Discussion 0

Correct Answer: B Vote an answer

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Question #7

Which of the following scenarios is an example of the criminal sanction known as criminal forfeiture?

A. As part of her sentence for bribery, a defendant is ordered to transfer a vehicle she received as a bribe to the government.

B. As part of her sentence for money laundering, a defendant is sentenced to a three- to five-year term of incarceration.

C. As part of his sentence for tax evasion, a defendant is ordered to pay a fine of $10,000 to the government.

D. As part of his sentence for embezzlement, a defendant is ordered to pay back his employer for the money he stole.

Discussion 0

Correct Answer: A Vote an answer

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Question #8

Smith, a Certified Fraud Examiner (CFE). works for the ABC Company, a private entity that operates w\ a jurisdiction with civil laws for defamation, invasion of privacy. and conflict of interest Smith seizes and searches the personal smartphone of Green an employee of ABC even though Green was not suspected of any wrongdong Assuming that Green had a reasonable expectation of privacy in the smartphone and Smith conducted the search without a legitmate interest or authority, under which of the following claims would Green MOST LIKELY be able to recover damages against Smith?

A. Slander

B. Conflict of interest

C. Intrusion into Green ' s private matters

D. Public disclosure of private facts

Discussion 0

Correct Answer: C Vote an answer

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Question #9

Which of the following is the MOST ACCURATE statement about rules prohibiting securities broker-dealers from making unsuitable recommendations on investments or investment strategies?

A. A suitability violation occurs when a broker enters into transactions and manages a client ' s account for the purpose of generating excessive commissions

B. A suitability violation occurs when a broker trades in a client ' s account without obtaining prior approval for making the transaction(s).

C. A suitability violation occurs when a broker does not carry out a trade requested by or promised to a customer

D. A suitability violation occurs when a broker recommends an investment or investment strategy that is inconsistent with the client ' s objectives

Discussion 0

Correct Answer: A Vote an answer

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Question #10

The________________requires that an employee act solely in the best interest of their employer, free of any serf-dealing, conflicts of interest, or other abuse that results in a personal advantage

A. Duty of responsibility

B. Duty of loyalty

C. Duty of care

D. Duty of employee trust

Discussion 0

Correct Answer: B Vote an answer

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Question #11

Which of the following is generally NOT one of the goals of deferred prosecution agreements?

A. To postpone prosecution until a company conducts an extensive internal investigation

B. To get an organization to reform its policies

C. To reduce the risk of illegal practices at an organization

D. To allow prosecutors to resolve a case while still punishing malfeasance

Discussion 0

Correct Answer: A Vote an answer

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