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ACFE Certified Fraud Examiner Sample Questions:

1. Which of the following is the MOST ACCURATE statement about the litigation privilege in common law jurisdictions?

A) The litigation privilege applies only to documents and materials prepared in anticipation of litigation
B) The litigation privilege applies only while a trial is underway
C) The primary purpose of the litigation privilege is to protect confidential communications between a client and the client's legal representative
D) The litigation privilege only protects documents and materials prepared by an attorney

2. Which of the following can affect the rights that employees may have during an internal investigation?

A) Existence of fraud risk factors
B) Existence of violation red flags
C) Existence of an employment contract
D) Existence of interstate compacts

3. According to the best practices regarding large cash transactions with customers as provided by the Financial Action Task Force (FATF) Recommendations, which of the following transactions would require a report to be filed with the government?

A) A single cash purchase of restaurant supplies for a sum that is above the jurisdiction's designated threshold.
B) A domestic cash deposit into a bank of a sum that is below the jurisdiction's designated threshold.
C) A single cash purchase of casino credits for a sum that is above the jurisdiction's designated threshold.
D) All of the above.

4. Alicia has been charged with tax evasion. As a defense, Alicia claims that she made an honest mistake due to the complexity of the tax law and did not intentionally violate the jurisdiction's tax laws. If the court finds that her mistake was made in good faith, then she will most likely NOT be found to have willfully engaged in fraudulent actions to avoid reporting or paying her taxes.

A) True
B) False

5. The________________requires that an employee act solely in the best interest of their employer, free of any serf-dealing, conflicts of interest, or other abuse that results in a personal advantage

A) Duty of employee trust
B) Duty of care
C) Duty of responsibility
D) Duty of loyalty

Solutions: