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

1. Llewellyn is testifying as an expert witness and is being cross-examined by an opposing party's attorney. The attorney questions Llewellyn's professionalism and the veracity of their report, suggesting that Llewellyn was directed to a particular conclusion by the party that hired them. Which of the following options BEST describes the questioning party's method?

A) Sounding board.
B) Bias.
C) Myopic vision.
D) Contradiction.

2. Robert, a Certified Fraud Examiner (CFE), wants to ensure that the authenticity of the evidence he collected during his investigation is not compromised. His main objective should be to:

A) Prevent all other parties from obtaining physical control of the evidence.
B) Establish a clear chain of custody to show that the evidence has not been altered.
C) Only alter or materially change the evidence himself if absolutely necessary.
D) Limit access to the evidence to judicial officials prior to trial proceedings.

3. The Financial Action Task Force (FATF) Recommendations concerning cross-border transfers of currency recommend that countries do which of the following?

A) Eliminate the practice of carrying currency above a certain threshold across international borders.
B) Require individuals to make a disclosure any time currency is physically transported into or out of a country, regardless of the currency amount.
C) Stipulate that financial institutions must inform authorities any time they conduct a transaction involving a cash equivalent originating from another country.
D) Establish reporting thresholds for physically carrying currency or currency equivalents into or out of a country.

4. Robert, a new investigator, asks Adam, a witness to an alleged fraud, "Didn't you think that he wasn't behaving appropriately?" This kind of question is called a(n):

A) Double-negative question
B) Complex question
C) Inverted question
D) Controlled-answer question

5. Which of the following is required for a contract, transaction, or scheme to qualify as an investment contract?

A) The investment must not have been made with expectations of making a profit.
B) The investment must be made in cash.
C) The investment activity is managed solely by the efforts of the investor and no others.
D) The investment is in a common enterprise.

Solutions: