Exit demo CFE-LAW Certified Fraud Examiner - LAW PDF format · free preview

ACFE CFE-LAW - Questions & Answers

Free preview · every answer includes a full explanation

Product page: https://prepkeys.com/cfe-law.html

Question 1
Single choice

Greta is convicted of white-collar crime. However, her sentence is suspended in return for her promise of good behavior.

Which of the following BEST describes Greta's sentence?

A.

Determinate sentence

B.

Probation

C.

Indeterminate sentence

D.

Deferred prosecution agreement

Question 2
Single choice

Bob receives a memorandum from his attorney that is protected by a legal professional privilege. Bob emails the memorandum to a third party who has no need to know the information in the memorandum.

Which of the following statements is MOST ACCURATE?

A.

Bob might have waived the privilege because he transmitted the protected information to a third party who has no need to know the information.

B.

Bob might have waived the privilege because he used email to transmit the protected information.

C.

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

D.

Bob did not waive the privilege because the legal professional privilege cannot be waived by transmitting protected information to a third party.

Question 3
Single choice

At the end of a civil proceeding, the court finds the defendant, a company, liable and orders it to pay a large sum of money to compensate for the plaintiff's losses.

Which of the following BEST describes this type of remedy?

A.

Declaratory relief

B.

Equitable relief

C.

Damages

D.

Injunction

Question 4
Single choice

Which of the following is the MOST ACCURATE statement about rules prohibiting securities broker-dealers from making unsuitable recommendations on investments or investment strategies?

A.

A suitability violation occurs when a broker recommends an investment or investment strategy that is inconsistent with the client's objectives.

B.

A suitability violation occurs when a broker does not carry out a trade requested by or promised to a customer.

C.

A suitability violation occurs when a broker enters into transactions and manages a client's account for the purpose of generating excessive commissions.

D.

A suitability violation occurs when a broker trades in a client's account without obtaining prior approval for making the transaction(s).

Question 5
Single choice

Under the best practices listed in the Financial Action Task Force (FATF) Recommendations concerning large cash transactions with customers, which of the following transactions would require a report to be filed with the government?

A.

A domestic credit card purchase of a piece of jewelry above the jurisdiction's designated threshold

B.

A lump-sum cash deposit to a bank above the jurisdiction's designated threshold

C.

An international purchase of a small boat with a lump-sum cash payment below the jurisdiction's designated threshold

D.

A cash payment to a restaurant supplier for restaurant supplies above the jurisdiction's designated threshold

Question 6
Single choice

Which of the following examples of judicial systems would best be described as a civil law system?

A.

The courts are bound primarily by previous court decisions to resolve legal issues.

B.

The courts are bound by both previous court decisions and codified principles or statutes.

C.

The courts are allowed to consider both codified statutes and previous court decisions but are bound by neither.

D.

The courts are bound by codified principles or statutes but are not bound by previous court decisions.

Question 7
Single choice

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

A.

An accountant overstates a restaurant's revenues to hide illegal funds that are secretly laundered through the business.

B.

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.

C.

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

D.

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

Question 8
Single choice

Raj is an employee who works in a jurisdiction that prohibits unreasonable workplace searches and surveillance in areas or items where employees have a reasonable expectation of privacy.
In which of the following is Raj MOST LIKELY to have a reasonable expectation of privacy?

A.

A filing cabinet in the office lobby

B.

A waste bin in the employee's office

C.

A company-issued tablet computer

D.

A backpack brought from home

Question 9
Single choice

Which of the following would be direct evidence that the criminal defendant, a former cashier for a home improvement store, committed a cash larceny scheme that resulted in the theft of more than $5,000 from the store?

A.

A witness testifies that they saw the defendant take the money.

B.

A diagram is used to display the location of the store's registers.

C.

A witness testifies that the defendant was almost always the last cashier to leave the store.

D.

A coworker testifies that the defendant was acting nervously the day the money was taken.

Question 10
Single choice

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?

A.

A tax credit evasion scheme

B.

An income and wealth tax evasion scheme

C.

An excise tax evasion scheme

D.

A value-added tax evasion scheme

Showing 10 of 100 questions · Unlock the full set