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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 # 121

Which of the following is the MOST ACCURATE statement about the UK Bribery Act?

Options:

A.  

Like the FCPA the UK Bribery Act contains an explicit exception for facilitating payments

B.  

Even if an organization ' s anti-corruption program complies with the FCPA, it might not be sufficient for the purpose of complying with the UK Bribery Act

C.  

Unlike the FCP

A.  

the UK Bribery Act makes it a crime to bribe a foreign public official in connection with international business transactions

D.  

The UK Bribery Act only exercises jurisdiction over individuals and corporate entities for acts of corruption when the offense occurs outside the United Kingdom

Discussion 0
Question # 122

Which of the following is a common method that fraudsters use to hide their ill-gotten gains?

Options:

A.  

Purchasing a used vehicle

B.  

Creating a will to allocate assets at death

C.  

Placing assets in probate

D.  

Transferring assets into foreign trusts

Discussion 0
Question # 123

Steve, a Certified Fraud Examiner (CFE). was interviewing Michelle, a fraud suspect. Dunng the first part of the interview. Michelle was attentive. However, when he asked her more direct questions about the fraud, she suddenly seemed unconcerned, alternately chewing on her pen cap and picking at a loose piece of fabric on the arm of her chair. From this conduct. Steve is likely to conclude that Michelle

Options:

A.  

Is feeling bored by the interview process

B.  

Is being deceptive

C.  

Does not know the answers to Steve ' s questions

D.  

Is telling the truth

Discussion 0
Question # 124

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

Options:

A.  

Has a keen ability to observe

B.  

Made poor consistent statements

C.  

Testified from personal knowledge

D.  

Is influenced by bias or self-interest

Discussion 0
Question # 125

Jim is being investigated for violations resulting from fraudulent health care claims he submitted. When a government auditor arrives to review documentation supporting the claims, Jim stages a fake emergency that prevents the auditor from completing their review. After the incident, Jim continues to evade the auditor. Jim has MOST LIKELY committed which of the following crimes?

Options:

A.  

Conspiracy to influence the court.

B.  

Fraudulent misrepresentation.

C.  

Obstruction of justice.

D.  

Misappropriation of evidence.

Discussion 0
Question # 126

Which of the following statements concerning access to nonpublic records is FALSE?

Options:

A.  

When civil litigation has commenced, a party often may obtain a subpoena or legal order for an individual ' s relevant bank records.

B.  

A fraud examiner can request a business ' s bank records even if the business is not legally obligated to comply.

C.  

An audit clause can be designed to allow a party to inspect the books of a business partner or vendor.

D.  

During the government ' s criminal investigation, a fraud examiner not employed by the government has a right to access relevant documents that the government has obtained.

Discussion 0
Question # 127

Which of the following situations would constitute a violation of the US Foreign Corrupt Practices Act (FCPA)

Options:

A.  

A private U.S company pays a S2.000 foreign corporation fee that is required in order to do business within the country

B.  

A private UK company transfers $25,000 to a Chilean public official to influence the award of lucrative overseas contracts.

C.  

A private U S company transfers $45,000 to a foreign official to influence the award of a public construction contract.

D.  

A private U.S company transfers $100,000 to the sole proprietor of a Brazilian company to influence the award of a commercial imports contract.

Discussion 0
Question # 128

If Mary uses legal means to lower her tax bill through legitimate deductions and credits, then she is engaging in tax evasion.

Options:

A.  

True

B.  

False

Discussion 0
Question # 129

An attorney hires a fraud examiner to work on an embezzlement case. In connection with the case, the attorney emails the fraud examiner a copy of a memorandum that is protected by a legal professional privilege. Which of the following statements is most accurate?

Options:

A.  

The attorney did not waive the privilege because the legal professional privilege belongs to the client, not the attorney.

B.  

The attorney did not waive the privilege because the attorney hired the fraud examiner to work on the case.

C.  

The attorney waived the privilege because they transmitted the protected information to a third party.

D.  

The attorney waived the privilege because they used email to transmit the protected information.

Discussion 0
Question # 130

Gunn, a Certified Fraud Examiner (CFE). was hired to trace Kelly ' s financial transactions. During his investigation. Gunn obtains records of electronic payments that Kelly made during the past three years. Which of the following are these records MOST LIKELY to reveal?

Options:

A.  

If Kelly has been skimming funds

B.  

The cities and countries in which Kelly conducts business

C.  

The division and distribution of Kelly ' s assets

D.  

The market value of any real property Kelly owns

Discussion 0
Question # 131

Anita is interviewing her client ' s employee, whom she suspects committed check fraud. During the interview. Anita asks if she can obtain account records from the suspect ' s bank If the suspect only gives Anita oral consent, the suspect ' s bank is required to allow Anita access to the suspect ' s account records.

Options:

A.  

True

B.  

False

Discussion 0
Question # 132

Which of the following statements regarding data visualization is TRUE?

Options:

A.  

Geospatial analysis displays keywords of various sizes to indicate their frequency and level of importance.

B.  

Tree maps provide a hierarchical structure of data using rectangular space that is divided into regions.

C.  

Color-coding and compatibility are the objectives of communications involving data visualizations.

D.  

Link analysis depicts intersections between various data types and their corresponding geographical locations.

Discussion 0
Question # 133

Eric is investigating Beth on behalf of their employer, XYZ Incorporated. During the investigation, Eric learns that Beth recently underwent surgery for a chronic illness and tells a group of their coworkers who are not involved in the investigation true details about Beth’s health issues. Assuming that their jurisdiction has civil laws for all the following causes of action, which one would give Beth the BEST chance for success if she decides to bring a civil action against Eric?

Options:

A.  

Negligent misrepresentation

B.  

Public disclosure of private facts

C.  

Defamation

D.  

Slander

Discussion 0
Question # 134

Which of the following statements regarding steps fraud examiners should take before seizing digital evidence is MOST ACCURATE?

Options:

A.  

Fraud examiners should make sure that all forensic equipment has been validated and maintain the validation on file.

B.  

Fraud examiners should assign a digital forensic tool to each member of the fraud examination team.

C.  

Fraud examiners should collect all documentary evidence and interview potential suspects before seizing any digital evidence.

D.  

Fraud examiners should plan to collect evidence in person instead of considering any remote evidence collection procedures.

Discussion 0
Question # 135

Ted works for a private company working on several government contracts in a jurisdiction with whistleblower antiretaliation protection laws. Ted informs the contracting government agency of fraud conducted by several other employees of the company, qualifying him as a whistleblower under the law. A subsequent investigation reveals that Ted made several threats of violence against the employees accused of fraud for failing to include him in their scheme. Which of the following statements regarding Ted is MOST ACCURATE?

Options:

A.  

The private company cannot terminate Ted for reporting the fraud, but it can terminate him for threatening the employees.

B.  

The private company can terminate Ted for both reporting the fraud and threatening the employees.

C.  

The private company cannot terminate Ted for any reason until the whistleblower case has concluded and his protections expire.

D.  

The private company can terminate Ted for reporting the fraud, but it cannot terminate him for threatening the employees.

Discussion 0
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