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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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Question # 61

Which of the following is the MOST APPROPRIATE measure when seeking to avoid alerting suspected perpetrators who are under investigation?

Options:

A.  

Terminate the suspected employee.

B.  

Delay taking any action.

C.  

Investigate during nonbusiness hours.

D.  

Disclose the investigation to all employees

Discussion 0
Question # 62

Which of the following statements regarding the data analytics approach known as predictive analytics is MOST ACCURATE?

Options:

A.  

In predictive analytics, layered artificial neural networks are used to accommodate more data and more sophisticated algorithms to identify complex patterns.

B.  

Predictive analytics involves configuring a program that imitates and integrates the actions of a human to execute certain business processes, which increases efficiency and automates repetitive manual tasks.

C.  

Predictive analytics involves the use of historical data, analyses, statistics, and machine learning components to build a model that depicts important trends and creates a quantitative projection about future outcomes.

D.  

In predictive analytics, computer systems are used to perform human tasks, such as visual perception and decision-making.

Discussion 0
Question # 63

Which of the following sets of numbers could a fraud examiner MOST LIKELY benefit from running a Benford’s Law analysis on?

Options:

A.  

Telephone numbers

B.  

Vendor invoice amounts

C.  

Employee identification numbers

D.  

Bank account numbers

Discussion 0
Question # 64

Frederick has multiple high-volume foreign bank accounts. The country he lives in requires him to report such accounts annually for tax purposes but he regularly and intentionally fails to report his accounts in order to reduce the amount of taxes he must pay. Which of the following schemes has Frederick MOST LIKELY committed?

Options:

A.  

A tax credit evasion scheme

B.  

A value-added tax evasion scheme

C.  

An excise tax evasion scheme

D.  

An income and wealth tax evasion scheme

Discussion 0
Question # 65

Which of the following statements is TRUE regarding the authentication of evidence in most common law systems?

Options:

A.  

For evidence to be authenticated, it must be certified by the clerk of the court trying the case.

B.  

Digital records can be authenticated by a witness who has personal knowledge.

C.  

Unauthenticated exhibits are admissible at trial if they are offered as circumstantial evidence.

D.  

The purpose of authentication is to show that the evidence submitted is relevant to the case.

Discussion 0
Question # 66

Assuming that a jurisdiction has prohibited pretexting with financial institutes, which of the following actions would constitute illegal pretexting?

Options:

A.  

Withdrawing another person ' s funds using a stolen bank account number and PIN

B.  

Digging through a person ' s trash to obtain their bank account information

C.  

Making purchases with a credit card account under a fictitious identity

D.  

Falsely claiming to be the spouse of an account holder to access bank records

Discussion 0
Question # 67

Which of the following options are examples of nonpublic records that are generally considered to be private and confidential in most jurisdictions?

Options:

A.  

An individual’s bankruptcy court records.

B.  

An individual’s banking records.

C.  

An individual’s divorce records.

D.  

An individual’s real property records.

Discussion 0
Question # 68

Hongwei, a fraud examiner, is conducting an admission-seeking interview with Harsha, an employee suspected of making personal purchases using the company’s credit card. Which of the following options is the MOST EFFECTIVE phrasing for Hongwei to use when asking Harsha an admission-seeking question?

Options:

A.  

“Do you know all the employees who have access to the company’s credit card?”

B.  

“Did you misuse the company credit card by making personal purchases?”

C.  

“Have you heard of anyone making personal purchases using the company’s credit card?”

D.  

“Why did you make personal purchases using the company’s credit card?”

Discussion 0
Question # 69

Allison, a Certified Fraud Examiner (CFE). is investigating a potential procurement fraud scheme. While interviewing a subject, she asks. " Why did you choose to do business with that vendor? " This can BEST be described as a(n):

Options:

A.  

Open question

B.  

Complex question

C.  

Leading question

D.  

Closed question

Discussion 0
Question # 70

Before Monique’s criminal trial for embezzlement, she contacts witnesses against her and offers to pay them if they change their stories regarding the embezzlement. Monique’s actions would MOST LIKELY cause the government to bring additional charges against her for:

Options:

A.  

Obstruction of justice

B.  

Conspiracy to influence the court

C.  

Fraudulent misrepresentation

D.  

Judicial extortion

Discussion 0
Question # 71

Which of the following is NOT a legal element that must be shown to prove a claim for fraudulent misrepresentation of material facts?

Options:

A.  

The defendant made a false statement

B.  

The victim suffered damages because of the misrepresentation.

C.  

The victim did not exercise due care in relying on the representation.

D.  

The victim relied on the misrepresentation.

Discussion 0
Question # 72

Vishal, a Certified Fraud Examiner (CFE). has just initiated an interview with Steve, a fraud suspect. After a short introduction. Vishal jokes about the fact that he and Steve are wearing the same tie and then proceeds to ask Steve about the previous night ' s major sporting event Vishal is attempting to

Options:

A.  

Establish the interview theme

B.  

Condition the witness.

C.  

Establish rapport

D.  

Exhibit passive listening.

Discussion 0
Question # 73

Which of the following statements is MOST ACCURATE concerning how criminal bargaining agreements are typically handled in jurisdictions where such agreements are allowed?

Options:

A.  

The presiding judge generally has the discretion to determine whether either party will offer a bargaining agreement.

B.  

The prosecution generally has the discretion to determine whether to offer a bargaining agreement.

C.  

Both the prosecution and the judge determine whether to offer a bargaining agreement.

D.  

The defendant’s counsel determines whether to offer a bargaining agreement.

Discussion 0
Question # 74

Which of the following is TRUE of a follow-up/recommendations section in a written fraud examination report?

Options:

A.  

A follow-up recommendations section is a required part of every written fraud examination report

B.  

A follow-up/recommendations section calculates the amount of fraud-related loss sustained by the organization

C.  

A follow-up/recommendations section should state remedial measures for the organization to undertake

D.  

All of the above

Discussion 0
Question # 75

A company files a civil lawsuit against one of its directors for insider trading. At the end of the trial, a court orders the director to refrain from purchasing or obtaining the stock of a particular corporation. Which of the following BEST describes this type of remedy?

Options:

A.  

Punitive damages

B.  

Declaratory relief

C.  

Injunction

D.  

Monetary relief

Discussion 0
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