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Certified Fraud Examiner (CFE) - Law

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Total Questions : 212

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Question # 11

Which of the following statements concerning front businesses as a method of laundering money is the LEAST ACCURATE?

Options:

A.  

A red flag of a front business is the observation of a large number of customers during peak operating hours

B.  

Front businesses provide cover for delivery and transportation related to illegal activity

C.  

From criminals ' perspective a disadvantage to front businesses is that they generally must pay taxes on the illicit income

D.  

Front businesses benefit launderers by providing a safe place to manage criminal activities

Discussion 0
Question # 12

Which of the following is NOT one of the elements that the government must prove to establish a violation of a law criminalizing false statements to government agencies?

Options:

A.  

The government relied on the false statement

B.  

The defendant knew the statement was false

C.  

The defendant made a false statement

D.  

The false statement was material

Discussion 0
Question # 13

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

Options:

A.  

True

B.  

False

Discussion 0
Question # 14

Management at ABC Org. suspects that Marcia, an employee in charge of negotiating vendor contracts, has a conflict of interest. For ABC Org. ' s conflict-of-interest claim to be actionable, which of the following scenarios must be TRUE?

Options:

A.  

The alleged conflict must have resulted in a direct personal benefit for Marcia.

B.  

Marcia must have failed to disclose that she had a personal or economic interest in a matter that could influence her professional role.

C.  

Marcia must have informed the organization that she had a connection to one or more of the vendors with whom she was negotiating.

D.  

The alleged conflict must have resulted in a financial loss for the organization.

Discussion 0
Question # 15

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 # 16

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 # 17

Which of the following is an example of a trade-based money laundering scheme?

Options:

A.  

An importer and an exporter conspire to conceal illicit funds by creating invoices that understate the quantity of goods shipped internationally

B.  

An accountant overstates a restaurants revenues to hide illegal funds that are secretly laundered through the business

C.  

A drug cartel outside of the United States launders illicit funds by hiring runners to deposit small amounts of money in bank accounts throughout the United States

D.  

A businessperson deposits illicit funds into the bank account of a company they secretly own which then lends the funds back to them

Discussion 0
Question # 18

In jurisdictions that allow criminal bargaining agreements the defendant ' s counsel generally has the discretion to determine whether a bargaining agreement is available to the defendant.

Options:

A.  

True

B.  

False

Discussion 0
Question # 19

In most countries, it is not necessary for employers to provide notice to their employees before implementing an employee monitoring program.

Options:

A.  

True

B.  

False

Discussion 0
Question # 20

Which of the following is generally NOT one of the goals of deferred prosecution agreements?

Options:

A.  

To postpone prosecution until a company conducts an extensive internal investigation

B.  

To get an organization to reform its policies

C.  

To allow prosecutors to resolve a case while still punishing malfeasance

D.  

To reduce the risk of illegal practices at an organization

Discussion 0
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