ACFE CFE-Law Exam Dumps

Certified Fraud Examiner (CFE) - Law

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Exam Code	CFE-Law
Exam Name	Certified Fraud Examiner (CFE) - Law
Questions	217 Questions Answers With Explanation
Update Date	06, 11, 2026
Price	Was : $81 Today : $45 Was : $99 Today : $55 Was : $117 Today : $65

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Demo Questions

Question # 1

Which of the following is the MOST ACCURATE statement about serf-regulatory organizations (SROs) in the securities industry? 

A. An SRO generally has sole regulatory authority over the securities industry in the jurisdiction in which it operates 
B. In most jurisdictions. SROs are prohibited from participating in the resolution of disputes related to securities transactions
C. An SRO is a governmental entity that exercises regulatory authority over the securities industry in its jurisdiction 
D. In some jurisdictions SROs establish the standards and rules under which members of the securities industry operate

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Question # 2

Company A used Company B to recover damages for the breach of a contract. In the sameproceeding. Company B sought damages for an allegation that Company A fraudulentlyinduced Company B into entering the contract. In this case, what would Company B's claimagainst Company A be called?

A. Counterclaim 
B. Collateral attack 
C. Reversal 
D. Cross-claim 

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Question # 3

Jay files for bankruptcy in order to settle all of his debts. During the bankruptcy proceeding,the court sells off his property and uses the proceeds to pay Jay's creditors, therebydischarging all of Jay's dischargeable debts. This type of bankruptcy proceeding can BESTbe described as:

A. Debt adjustment bankruptcy 
B. Liquidation bankruptcy 
C. Reorganization bankruptcy 
D. Debt dismissal bankruptcy 

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Question # 4

In most civil law jurisdictions which of the following BEST describes when a party isrequired to begin taking steps to preserve and produce relevant evidence?

A. When the court orders such steps to be taken 
B. When litigation has started 
C. When the party receives a service of process 
D. When the charging documents are filed 

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Question # 5

Cora, a Certified Fraud Examiner (CFE), wants to ensure that the authenticity of theevidence she collected during her investigation is not compromised. Her main objectiveshould be to:

A. Only release the evidence to the judge who will be presiding over the case. 
B. Establish a clear chain of custody to show that the evidence has not been changed. 
C. Require opposing parties to present a court order to access any physical evidence. 
D. Prevent all other parties from obtaining physical control of the evidence. 

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Question # 6

The same customer comes into a casino each day and deposits a large amount of cashinto an account but after very little gambling the customer withdraws the funds The casinoemployees suspect that the customer may be engaged in money laundering activityAssuming that the anti-money laundering (AML) regulations that govern the casino’sactivities correspond to the Financial Action Task Force (FATF) Recommendations thecasino:

A. May, but is not required to file a report of suspicious transactions related to possiblemoney laundering with appropriate authorities
B. May not file a report of suspicious transactions related to potential criminal activity withappropriate authorities
C. Is required to file a report of suspicious transactions with appropriate authoritiesbecause the employees suspect money laundering violations
D. Is required to file a cash transaction report for possible criminal activity with appropriateauthorities because cash was involved

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Question # 7

Which of the following statements concerning the appointment of expert witnesses at that is accurate? 

A. Generally, the court appoints the primary expert witnesses in inquisitorial jurisdictions. 
B. Generally, only the parties may select expert witnesses in inquisitional jurisdictions. 
C. Generally the court selects the primary expert witnesses in adversarial jurisdictions. 
D. Generally, only the parties may select experts to introduce testimony in adversarial jurisdictions

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Question # 8

Slater has been appointed as a bankruptcy administrator. According to therecommendations of the World Bank Principles for Effective Insolvency and Creditor/DebtorRegimes (World Bank Principles), which of the following statements concerning Slater'srole as bankruptcy administrator is MOST ACCURATE?

A. Slater may investigate all contracts the debtor entered into, but he does not have thepower to cancel them without the debtor's permission.  
B. Slater may request relevant information from the debtor's agents or others with knowledge of the debtor's affairs, but he cannot force them to provide it.
C. Slater may collect, preserve, and dispose of the debtor's property. 
D. Slater may not interfere with contracts signed by the debtor. 

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Question # 9

Davis is an employee at Waccamaw Homeplace a publicly traded corporation Davis knowsthat Waccamaw is about to publicly announce a new joint venture project in China, so hebuys shares of Waccamaw stock Assuming that his conduct was illegal m the jurisdiction inwhich he works and resides, what type of crime did Davis MOST LIKELY commit?

A. Churning 
B. Futures fraud 
C. Insider trading 
D. Trading on margin 

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Question # 10

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

A. A diagram is used to display the location of the store's registers 
B. A witness testifies that they saw the defendant take the money 
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

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Question # 11

An attorney hires a fraud examiner to work on an embezzlement case. In connection withthe case, the attorney emails the fraud examiner a copy of a memorandum that is protectedby a legal professional privilege. Which of the following statements is most accurate?

A. The attorney did not waive the privilege because the legal professional privilege belongsto the client, not the attorney
B. The attorney did not waive the privilege because the attorney hired the fraud examinerto work on the case
C. The attorney waived the privilege because they transmitted the protected information to a third party.
D. The attorney waived the privilege because they used email to transmit the protected information.

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Question # 12

Which of the following statements concerning digital currencies, such as bitcoin, is MOST ACCURATE?

A. Digital currencies are subject to all of the same regulations as payments made through traditional financial institutions
B. Digital currencies are attractive to money launderers because payments often crossjurisdictional boundaries, making it difficult for authorities to pursue enforcement
C. Digital currencies are attractive to money launderers because they are a paymentmethod that provides complete anonymity
D. Digital currencies are not typically used to launder money due to strict customeridentification or recordkeeping requirements enforced in all jurisdictions

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Question # 13

Which of the following is a requirement of the European Union's (EU) General Data Protection Regulation (GDPR)? 

A. An organization must obtain a data subject's consent before collecting or processing personal data about that individual. 
B. An organization must refrain from confirming or denying whether it is in possession of a data subject's personal data even if the data subject requests this information.
C. An organization must provide a data subject's personal data upon that individual's request for a reasonable fee. 
D. An organization must notify all affected data subjects within six months when a data breach occurs that is likely to result in a high risk to their rights and freedoms.

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Question # 14

Each of the following statements concerning cross-examination of witnesses in adversarial jurisdictions is accurate EXCEPT:

A. If opposing counsel asks a very complex question, then the witness should ask for the question to be rephrased.
B. One of the goals of cross-examination is to discredit the witness’s testimony. 
C. Opposing counsel will generally cross-examine a witness only if it would help the case. 
D. During cross-examination, opposing counsel is mostly concerned with discovering information that was previously undiscovered in the case. 

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Question # 15

Ramona is investigating Eugene for misconduct Ramona and Eugene both work for ElekTek, which operates in a jurisdiction with evil laws for defamation, invasion of privacy andconflict of interest During the investigation Ramona obtained ^formation that Eugene ischeating on his spouse Ramona to a large group of Elek-Tek employees that Eugene wascommitting adultery, which turned out to be true Which cause of action would give Eugenethe BEST chance for success m a civil suit against Ramona?

A. Conflict of interest 
B. Defamation 
C. Public disclosure of private facts 
D. Slander 

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Question # 16

The government filed a avil action against a politician for accepting real estate as a bribe.There is a possibility that the politician could transfer the real estate to a third party beforethe court enters a final judgment Which type of order should the government seek from thecourt to prevent the politician from transferring the real estate?

A. Preservation order 
B. Declaratory relief 
C. Prejudgment attachment 
D. Litigation hold 

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Question # 17

Regarding the litigation privilege in common law jurisdictions, which of the following is theMOST ACCURATE statement?

A. The litigation privilege prevents disclosure of documents prepared in anticipation of litigation
B. The litigation privilege does not protect communications made by third-party agents, such as consultants.
C. The litigation privilege prevents disclosure of documents entered as evidence during the course of litigation.
D. The litigation privilege protects all communications related to a case, regardless of when they occurred

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Question # 18

All of the following are methods of pretrial civil discovery commonly found in common law jurisdictions EXCEPT:

A. Affidavits of documents or records 
B. Written examinations 
C. Injunctions 
D. Oral examinations 

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Question # 19

During a trial in an adversarial system an attorney calls an expert witness to the stand andasks "Could you please describe the procedures you performed in your examination?''Based on this question, which type of testimony is MOST LIKELY being presented'?

A. Impeachment 
B. Direct exam Ml mi 
C. Cross-examination 
D. Request for admission 

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Question # 20

Before Monique’s criminal trial for embezzlement, she contacts witnesses against her andoffers to pay them if they change their stories regarding the embezzlement. Monique’sactions would MOST LIKELY cause the government to bring additional charges against herfor:

A. Obstruction of justice 
B. Conspiracy to influence the court 
C. Fraudulent misrepresentation 
D. Judicial extortion 

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Question # 21

In systems using adversarial processes, an attorney may impeach an opposing party's witness by showing that the witness:

A. Testified from personal knowledge 
B. Has a reputation for being truthful 
C. Made prior inconsistent statements 
D. Possesses a strong ability to observe 

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Question # 22

Clara is a fraud examiner investigating a potentially fraudulent misrepresentation made inthe sale of a security. Which of the following questions should Clara ask to determine if themisrepresentation was material?

A. "Would a reasonable investor want to know the information to make an informed decision?"
B. "Is the person who made the misrepresentation registered as a broker-dealer?" 
C. "Were potential investors promised guaranteed returns in the misrepresentation?" 
D. "Did the person who made the representation have authorization to make thestatements that are in dispute?"

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Question # 23

Amanda works for a government contractor. She informs the government that her employerhas been submitting false claims to the government for payment. Later, it is discovered thatAmanda misappropriated more than $150,000 of her employer’s money. Amanda qualifiesas a whistleblower entitled to anti-retaliation protection under the law because of her reportto the government. Which of the following statements about Amanda is correct?

A. The employer can terminate Amanda for misappropriating funds. 
B. The employer cannot terminate Amanda for any reason. 
C. The employer can terminate Amanda for making the report to the government. 
D. None of the above. 

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Question # 24

Freya, a government contractor, has been convicted of colluding with other contractors tomanipulate the competitive bidding process. After her conviction, Freya’s name is added toa list of individuals who are prohibited from bidding on government contracts for a period offive years. The administrative penalty that Freya received is BEST described as:

A. License revocation 
B. Disenfranchisement 
C. Debarment 
D. License suspension 

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Question # 25

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

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

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