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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 # 91

Lmdsey, a Certified Fraud Examiner (CFE). has been retained to investigate allegations of bribery and kickbacks allegedly committed by a member of an organization ' s procurement department. Lindsey conducts an interview during which one of the accused ' s colleagues states that they overheard the accused discussing a free tnp received from one of the organization ' s vendors. Which type of evidence would the interviewee ' s statement be considered?

Options:

A.  

Documentary evidence

B.  

Testimonial evidence

C.  

Verbal evidence

D.  

Inconclusive evidence

Discussion 0
Question # 92

In jurisdictions that allow for corporate criminal liability, which of the following is typically required for the corporation to be vicariously liable for the acts of one of its employees?

Options:

A.  

The employee committed the offense with the intention of personal benefit.

B.  

The employee was acting outside the scope of their employment.

C.  

Management was directly involved in the underlying offense.

D.  

An employee of the corporation committed each element of a criminal offense.

Discussion 0
Question # 93

Tara. a Certified Fraud Examiner (CFE). is searching social media sites for evidence in a fraud investigation. Which of the following is the MOST ACCURATE statement regarding what Tara should do when mining social media sites for evidence of fraud?

Options:

A.  

Tara should preserve the information by saving the links of the postings as bookmarks in her browser.

B.  

Tara should preserve the metadata by printing out the web pages of each of the postings.

C.  

Tara should conduct a forensic shutdown of the computer to preserve the metadata m the social networking sites.

D.  

Tara should preserve the information from the sites so that it can be established as authentic if used in court.

Discussion 0
Question # 94

In systems using adversarial processes, an attorney may impeach an opposing party ' s witness by showing that the witness:

Options:

A.  

Testified from personal knowledge

B.  

Has a reputation for being truthful

C.  

Made prior inconsistent statements

D.  

Possesses a strong ability to observe

Discussion 0
Question # 95

After the government charged Angel with money laundering, he forcibly entered his accountant’s office and destroyed incriminating documents. Angel’s actions would most likely cause the government to bring additional charges against him for:

Options:

A.  

Fraudulent misrepresentation

B.  

Misappropriation of evidence

C.  

Conspiracy to influence the court

D.  

Obstruction of justice

Discussion 0
Question # 96

Which of the following is an element that must be proven to establish a perjury offense?

Options:

A.  

The defendant made a false statement in a court of law.

B.  

The defendant made a false statement that influenced the fact finder’s decision.

C.  

The defendant made a false statement to a judge.

D.  

The defendant made a false statement that was material to the proceeding.

Discussion 0
Question # 97

Janice, an accountant for ACME Entertainment, misappropriates a significant amount of money from ACME accounts. After an internal investigation, ACME management decides that the company likely needs to refer the case to law enforcement, but it also wants to bring a civil action against Janice. Which of the following statements is TRUE?

Options:

A.  

ACME may pursue a civil action against Janice even if she is involved in criminal action brought by law enforcement if the jurisdiction permits parallel proceedings.

B.  

ACME must refer the case to law enforcement for potential criminal action and cannot pursue a civil action.

C.  

ACME may file a civil action only if law enforcement reviews the case and decides not to pursue criminal action against Janice for misappropriating company funds.

D.  

ACME must file a civil action prior to referring the case to law enforcement for potential criminal action.

Discussion 0
Question # 98

Luisa is charged with violating a criminal law that prohibits making false statements to government agencies. Which of the following is NOT one of the elements the government must prove?

Options:

A.  

The false statement was material.

B.  

The government relied on the false statement.

C.  

The defendant knew the statement was false.

D.  

The defendant made a false statement.

Discussion 0
Question # 99

After completing all necessary investigative steps. Erica, a Certified Fraud Examiner (CFE), is reasonably sure that Justine, her primary suspect, committed the fraud in question. Before scheduling an admission-seeking interview with Justine, what else should Erica be reasonably sure of?

Options:

A.  

That Justine will confess to the accusation when prompted

B.  

That Justine ' s employer will take disciplinary action against Justine if she confesses

C.  

That the interview ' s time, place, and content can De controlled

D.  

That no other person was involved in the fraud n question

Discussion 0
Question # 100

Marilyn, a Certified Fraud Examiner (CFE). is reasonably sure that Shelly, her primary suspect, committed the fraud in question Before scheduling an admission-seeking interview with Shelly. Marilyn should be reasonably sure of all of the following EXCEPT:

Options:

A.  

That all reasonable investigative steps have been taken

B.  

That the interview ' s time and location can be controlled

C.  

That no other person was involved in the fraud in question

D.  

That the interview ' s subject matter can be controlled

Discussion 0
Question # 101

Which of the following scenarios MOST ACCURATELY represents a suitability violation in a jurisdiction that imposes a suitability requirement on broker-dealers?

Options:

A.  

A broker-dealer is unfamiliar with their client ' s risk appetite, so they refuse to make any investments on the client ' s behalf without additional information.

B.  

A broker-dealer learns about a promising investment and recommends it to their new client without knowing the client ' s relevant personal and financial information.

C.  

A broker-dealer makes an extremely conservative recommendation to a client that aligns with their risk profile and financial information.

D.  

A broker-dealer makes an investment for a client without first obtaining the client ' s approval to make that specific transaction on their behalf.

Discussion 0
Question # 102

Lorna is an employee at Victorian Inc., 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. Management suspects that Lorna is misappropriating funds from the company, so it instructs Charlie, an investigator employed by Victorian, to search Lorna’s company-issued laptop. Charlie finds incriminating evidence on Lorna’s laptop and gives it to law enforcement. However, by failing to obtain a search warrant before conducting his search, Charlie violated Lorna’s rights.

Options:

A.  

True

B.  

False

Discussion 0
Question # 103

Noah, a U.S. resident, runs a fraud operation that targets accountants at several U.S. companies across multiple states. Noah sends phishing emails in an effort to steal the accountants’ log-in credentials so that he can remotely access corporate accounts and transfer funds to bank accounts that he controls. If the U.S. government prosecutes Noah, which of the following frauds would MOST LIKELY be the basis for the charges?

Options:

A.  

Mail fraud

B.  

Communications fraud

C.  

Wire fraud

D.  

Interstate fraud

Discussion 0
Question # 104

All of the following are true with regard to textual analytics EXCEPT:

Options:

A.  

When conducting textual analysis, the fraud examiner should come up with a list of fraud keywords to search for.

B.  

Textual analytics is used to reveal patterns, sentiments, and relationships indicative of fraud

C.  

The purpose of textual analytics is to search for and find an admission of fraud that can be presented in court

D.  

Textual analytics provides the ability to uncover warning signs of potentially fraudulent employee behavior

Discussion 0
Question # 105

To prepare an organization for a formal fraud investigation, which of the following steps should be taken?

Options:

A.  

Notify all managers that an investigation will be taking place and why it will be occurring.

B.  

Alert the subject that they are being investigated by the organization and must comply with any requests.

C.  

Send an email to staff in affected departments explaining that they might be questioned as part of the investigation.

D.  

Inform both key decision-makers and the organization’s legal counsel when the investigation is about to start.

Discussion 0
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