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ACFE Certified Fraud Examiner (CFE) - Fraud Investigations and Legal Issues Sample Questions:

1. One of the purposes of securities regulation is to maintain market confidence.

A) True
B) False

2. Naveed, a fraud suspect, has decided to make an admission to Omar, a Certified Fraud Examiner (CFE).
Which of the following items of information should Omar obtain from Naveed during the verbal admission?

A) A general estimate of the amount of money involved in the fraud
B) A statement from Naveed indicating that his conduct was an accident
C) Controls that would have prevented Naveed from committing the fraud
D) Facts about the fraud known to co-conspirators and witnesses

3. All of the following are common legal defenses for tax evasion EXCEPT:

A) Death of the taxpayer
B) The actions were tax avoidance not tax evasion
C) The taxpayer s reliance on an attorney or accountant
D) Mental illness of the taxpayer

4. Which of the following questions is MOST HELPFUL for fraud examiners to ask themselves when determining the legality of electronically recording a conversation?

A) " Will the recording equipment produce a digital file? "
B) " Can the recording include both audio and video?
C) " How long is the anticipated recording expected to last? "
D) " Will the recorded conversation take place before or after work? "

5. If a fraud examiner needs to establish a baseline with an interviewee, which of the following questions would be MOST EFFECTIVE in accomplishing this task?

A) "Are you familiar with the company's anti-fraud policy?"
B) "What time do you usually start working each day?"
C) "Have any of your coworkers mentioned experiencing financial pressure?"
D) "How strong do you think your department's internal controls are?"

Solutions: