CFE-Law by ACFE Actual Free Exam Questions And Answers

Question 1

The same customer comes into a casino each day and deposits a large amount of cash into an account but after very little gambling the customer withdraws the funds The casino employees suspect that the customer may be engaged in money laundering activity Assuming that the anti-money laundering (AML) regulations that govern the casino's activities correspond to the Financial Action Task Force (FATF) Recommendations the casino:

A. May, but is not required to file a report of suspicious transactions related to possible money laundering with appropriate authorities

B. Is required to file a report of suspicious transactions with appropriate authorities because the employees suspect money laundering violations

C. Is required to file a cash transaction report for possible criminal activity with appropriate authorities because cash was involved

D. May not file a report of suspicious transactions related to potential criminal activity with appropriate authorities

Discussion 0

Correct Answer: B Vote an answer

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Question 2

Which of the following schemes involves disguising money from illegal nonbusiness sources by recording more income on a business ' s books than the business actually generates?

A. Structured deposits

B. None of re above

C. Trade-based laundering

D. Overstate revenues

Discussion 0

Correct Answer: D Vote an answer

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Question 3

The Financial Action Task Force (FATF) Recommendations suggest that countries should do which of the following?

A. Require financial institutions to monitor their customers ' social media activity for signs of money laundering.

B. Only conduct business with other countries that comply with the anti-money laundering recommendations.

C. Impose a sentence of five years of imprisonment for all money laundering and terrorist financing convictions.

D. Use a risk-based approach when creating and establishing their anti-money laundering policies.

Discussion 0

Correct Answer: D Vote an answer

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Question 4

Cora, a Certified Fraud Examiner (CFE), wants to ensure that the authenticity of the evidence she collected during her investigation is not compromised. Her main objective should be to:

A. Establish a clear chain of custody to show that the evidence has not been changed.

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

C. Only release the evidence to the judge who will be presiding over the case.

D. Require opposing parties to present a court order to access any physical evidence.

Discussion 0

Correct Answer: A Vote an answer

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Question 5

If Mary uses legal means to lower her tax bill through legitimate deductions and credits she is engaging m tax evasion

A. False

B. True

Discussion 0

Correct Answer: A Vote an answer

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Question 6

Antonio is investigating Sam on behalf of their employer, XYZ Company. During the investigation, Antonio tells a group of their coworkers who are not involved in the investigation that he discovered Sam has a serious gambling addiction, which is true. Assuming that their jurisdiction has civil laws for all of the following causes of action, which one would give Sam the BEST chance for success if he decides to bring a civil action against Antonio?

A. Negligent misrepresentation

B. Public disclosure of private facts

C. Defamation

D. Slander

Discussion 0

Correct Answer: B Vote an answer

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Question 7

IBC Manufacturing is a private company in a jurisdiction in which the public has the legal right to be free from unreasonable search and seizure by government authorities. An investigator at IBC searches the desk of Denise an IBC employee and finds illegal narcotics. The investigator seizes the narcotics and turns them over to members of law enforcement. The investigator violated Denises rights by failing to obtain a search warrant before conducting the search

A. False

B. True

Discussion 0

Correct Answer: B Vote an answer

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Question 8

Lance stole cash from his employer and then deposited the funds into a domestic bank account. Next, he wired the funds to a foreign bank account and engaged in several other transactions using foreign accounts to make them difficult to trace. Finally, he transferred the funds back to a domestic account and then spent the money on some home improvements. In which of the following stages of money laundering did Lance engage when he spent the money on home improvements?

A. Implementation

B. Placement

C. Integration

D. Layering

Discussion 0

Correct Answer: C Vote an answer

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Question 9

Allison works for a government contractor She informs the government that her employer has been submitting false claims to the government for payment Later it is discovered that Allison has misappropriated more than $50,000 of her employer ' s money Alison qualifies as a whistleblower entitled to anti-retaliation protection under the law because of her report to the government Which of the following statements about Allison is CORRECT?

A. Allison cannot be fired for any reason

B. Alison cannot be fired for informing the government of her employee's fraud

C. Allison cannot be fired for misappropriating funds from her employer

D. None of the above

Discussion 0

Correct Answer: B Vote an answer

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Question 10

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 11

Which of the following statements concerning civil trials in common law jurisdictions is MOST ACCURATE?

A. in most civil cases, the standard of proof is the preponderance of the evidence

B. Neither side may appeal an adverse judgment in a civil case

C. Jury verdicts m civil trials must always be unanimous

D. Civil jury trials must have the same number of jurors as in criminal jury trials.

Discussion 0

Correct Answer: C Vote an answer

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Question 12

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 (or false imprisonment against Todd, Todd will likely

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

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

C. Lose the case because janessa did not leave the interview

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

Discussion 0

Correct Answer: A Vote an answer

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ACFE Certified Fraud Examiner - CFE-Law Exam Practice Test

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