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CFE-Fraud-Investigations-and-Legal-Issues Practice Questions

Certified Fraud Examiner (CFE) - Fraud Investigations and Legal Issues

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Total Questions : 508

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Question # 16

Elsa, a fraud examiner at ABC Corp., is interviewing Leah, a fraud suspect. Leah allegedly committed a fraud scheme that resulted in a loss of $200,000 for AB

C.  

Elsa asks Leah directly whether she was involved in the fraud. Which of the following responses from Leah is MOST LIKELY an indication that she is being deceptive?

Options:

A.  

“No, I have never stolen anything from AB

C.  

B.  

“I had no involvement with the scheme.”

C.  

“Why would I do something like that?”

D.  

“No, I did not commit fraud against AB

C.  

Discussion 0
Question # 17

One of the purposes of securities regulation is to promote an active and competitive market.

Options:

A.  

True

B.  

False

Discussion 0
Question # 18

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

Options:

A.  

In common law jurisdictions, appellate courts are generally not permitted to make their own factual determinations when reviewing a 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.  

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

Discussion 0
Question # 19

Fraud examination reports should be written with which of the following audiences in mind?

Options:

A.  

The media

B.  

Opposing legal counsel

C.  

Investors and owners

D.  

All of the above

Discussion 0
Question # 20

Which of the following scenarios describes a situation that would MOST LIKELY cause an item’s authenticity to be questioned when being admitted as evidence?

Options:

A.  

A physical ledger gathered during an internal investigation is stored in a secure room with restricted and monitored access.

B.  

An electronic device seized during an investigation is placed in a storage area only accessible to company employees.

C.  

An image acquired during an investigation is stored on an organization’s private server with access logs and password protections.

D.  

A confession is recorded in a signed memorandum and placed in a secure facility until being passed to the attorney handling the litigation.

Discussion 0
Question # 21

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

Options:

A.  

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

B.  

The defendant knew the purpose of the conspiracy and intentionally joined it.

C.  

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

D.  

The defendant knew the purpose of the conspiracy and accomplished it.

Discussion 0
Question # 22

Ralph, a Certified Fraud Examiner (CFE), has been hired to investigate bribery allegations at Pippy Inc. He is preparing to interview one of Pippy’s employees who might be involved in the suspected fraud. How should Ralph introduce himself to the interviewee?

Options:

A.  

“Hello, my name is Ralph. I’m an investigator hired by Pippy Inc. I hope you can help me gather information about an issue.”

B.  

“Hello, my name is Ralph. I’m a Certified Fraud Examiner, and I hope you can help me gather information about a possible fraud.”

C.  

“Hello, my name is Ralph. I’m a Certified Fraud Examiner and have been hired by Pippy Inc. to investigate a possible fraud.”

D.  

“Hello, my name is Ralph. I work for Pippy Inc., and I hope you can help me gather some information I’m trying to collect.”

Discussion 0
Question # 23

__________ insurance is a type of insurance under which an insured entity is covered against losses caused by the dishonest or fraudulent acts of its employees.

Options:

A.  

Fidelity

B.  

Inherent risk

C.  

Opportunity

D.  

Residual risk

Discussion 0
Question # 24

During an interview with Alice, a suspect in an embezzlement case, the interviewer observes several signs of stress in Alice ' s behavior, such as shifting around in her chair, exhibiting shallow breathing, and occasionally stuttering during her replies. The interviewer should conclude that these symptoms are caused by deception.

Options:

A.  

True

B.  

False

Discussion 0
Question # 25

Which of the following methods do fraudsters commonly use to hide their ill-gotten gains?

Options:

A.  

Giving funds to charity.

B.  

Transferring assets into another person’s name.

C.  

Paying the amount of taxes owed to the government.

D.  

Purchasing a used vehicle.

Discussion 0
Question # 26

Which of the following is a measure that can help avoid alerting suspected perpetrators who are under investigation?

Options:

A.  

Terminate the suspected employee.

B.  

Notify everyone in the affected department

C.  

Delay taking any action.

D.  

Inform only those who need to know.

Discussion 0
Question # 27

Al needs to know the location of the principal office and the initial shareholders of a company he is investigating. Which of the following would be the BEST source of this reformation?

Options:

A.  

The organizational filings with the government of the jurisdiction in which the company is incorporated

B.  

The contractual documents regarding real properly owned by the corporation

C.  

The utility records in the municipality where the corporation has its principal office

D.  

The shareholder data form filed with the World Bank

Discussion 0
Question # 28

Which of the following, if available, would help an organization recover losses from an instance of internal fraud?

Options:

A.  

Privilege insurance

B.  

Customer liability policy

C.  

Fidelity insurance

D.  

Deposition

Discussion 0
Question # 29

Jackson, a digital forensic examiner for a government agency, is conducting a criminal investigation into the alleged embezzlement of funds from the government ' s Welfare Department (WD). Ginny. a WD employee, is the prime suspect. Jackson obtains a court order authorizing him to seize Ginny ' s personal computer for forensic examination. Which of the following is the MOST ACCURATE statement?

Options:

A.  

If Ginny ' s computer is running. Jackson should perform a graceful shutdown by turning it off using the normal shutdown process

B.  

If Ginny’s computer is off and Jackson needs evidence that exists only in the form of volatile data, he should turn the computer on and retrieve data directly via the computer ' s normal interface.

C.  

If Ginny ' s computer is off. Jackson should not turn it on unless he plans to use an encryption device that can guarantee that the system ' s hard drive will not be accessed during startup.

D.  

If Ginny ' s computer is running. Jackson may retrieve data from the computer directly via its normal interface if the evidence that he needs exists only in the form of volatile data

Discussion 0
Question # 30

Janet suspects that a local restaurant is being used as a front business for a criminal operation. Which of the following types of records would be the MOST LIKELY to help Janet discover who owns the restaurant building?

Options:

A.  

Commercial filings

B.  

Building permit records

C.  

Local court records

D.  

Voter registration records

Discussion 0
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