ACFE CFE-Law Dumps

Question # 1

Which of the following is a method of disguising money acquired from illegal sources byrecording more income on a business's books than the business actually generates?

A. Overstating revenues 
B. Reporting real estate purchases 
C. Recording but not depositing revenue 
D. None of the above 

Show Answer

Question # 2

Which of the following statements regarding using front businesses as a method of laundering money is MOST ACCURATE? 

A. Front businesses are a favored method because it is easy to match the costs associated with providing customers food, liquor, and entertainment with the revenues produced. 
B. Bars, restaurants, and nightclubs are commonly used as front businesses because these venues tend to charge relatively low prices and customers rarely vary in their purchases.
C. Front businesses can often be detected because these businesses have a large number of customers during peak operating hours and high income. 
D. A front business that conducts legitimate business can provide cover for delivery and transportation related to illegal activity. 

Show Answer

Question # 3

Which of the following is a red flag that might be indicative of an entity operating a securitybusiness without the proper license or registration?

A. There are justified gaps in the work history of promoters at the entity. 
B. The entity is known to have a history of regulatory problems. 
C. There is a lack of customer complaints against the entity. 
D. The entity's website contains detailed background information. 

Show Answer

Question # 4

Lorna is an employee at Victorian Inc., a private company in a jurisdiction in which thepublic has the legal right to be free from unreasonable search and seizure by governmentauthorities. Management suspects that Lorna is misappropriating funds from the company,so it instructs Charlie, an investigator employed by Victorian, to search Lorna’s companyissued laptop. Charlie finds incriminating evidence on Lorna’s laptop and gives it to law enforcement. However, by failing to obtain a search warrant before conducting his search,Charlie violated Lorna’s rights.

A. True 
B. False 

Show Answer

Question # 5

Which of the following schemes involves disguising money from illegal nonbusinesssources by recording more income on a business's books than the business actuallygenerates?

A. Overstate revenues 
B. Structured deposits 
C. Trade-based laundering 
D. None of re above 

Show Answer

Question # 6

Suri is conducting a fraud examination in a country where courts apply laws from codifiedstatutes to each case and their decisions are not bound by similar court decisions fromprevious cases. This type of judicial system is best known as a:

A. Codified law system 
B. Common law system 
C. Statutory law system 
D. Civil law system 

Show Answer

Question # 7

Which of the following statements regarding the qualifications of expert witnesses in mostinquisitorial jurisdictions is CORRECT?

A. Certification in a specific field is always enough to qualify an expert 
B. An excerpt is not qualified to testify unless all parties to the litigation approve 
C. Experts are generally prohibited from serving as expert witnesses in multiple cases 
D. The qualification of an expert is generally based on standardized requirements 

Show Answer

Question # 8

Evidence that tends to make some tact at issue more or less likely than it would be without the evidence is called: 

A. Circumstantial evidence 
B. Testamentary evidence 
C. Demonstrative evidence 
D. Relevant evidence 

Show Answer

Question # 9

Which of the following statements concerning examinations of expert witnesses in mostinquisitorial jurisdictions is accurate?

A. Both the parties and the judge may determine how much consideration should be givento an expert's testimony.
B. Both the parties and the judge may question an expert's credibility. 
C. Only the parties are allowed to make objections regarding an expert's biases. 
D. Only the judge is allowed to question the expert's analysis and the methods that they used in their determinations.

Show Answer

Question # 10

The Organisation for Economic Co-operation and Developments (OECD) Recommendationon Combating Bribery m International Business (Recommendation) urges member statesto combat the bribery of foreign public officials by taking steps to improve which of thefollowing primary areas within their respective infrastructures?

A. Public health and safety regulations 
B. Laws and regulations related to public subsidies licenses, and contract procurement 
C. Laws and regulations covering e-commerce 
D. Consumer data protection laws 

Show Answer

Question # 11

In common law jurisdictions, which of the following scenarios would MOST LIKELY result insanctions for an organization for failing to preserve evidence?

A. An employee intentionally destroys a relevant document prior to the companyannouncing the possibility of litigation.
B. An employee unintentionally alters a digital document that is not directly relevant to anypotential litigation that the company has announced to its staff.
C. An employee accidentally deletes a digital document that is relevant to litigation after thecompany announces that such litigation is a possibility.
D. An employee abstains from destroying a document relevant to an ongoing proceedingeven though this act violates the company's document retention policy.

Show Answer

Question # 12

In jurisdictions that allow for corporate criminal liability which of the following is typically required for the corporation to be vicariously liable for the acts of one of its employees? 

A. Management was directly involved with the offense 
B. Management knew of the underlying offense but did not correct it 
C. The corporation had previous violations of a similar nature 
D. The employee was acting within the scope of their employment 

Show Answer

Question # 13

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

A. A domestic credit card purchase of a piece of jewelry above the jurisdiction's designated threshold
B. A cash payment to a restaurant supplier for restaurant supplies 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 lump-sum cash deposit to a bank above the jurisdiction's designated threshold 

Show Answer

Question # 14

Which of the following statements concerning the selection of expert witnesses during trial is MOST ACCURATE?

A. Generally, the court selects the primary expert witnesses in adversarial jurisdictions andthe parties do not participate in the selection.
B. Generally, the parties select the expert witnesses in both inquisitorial and adversarial jurisdictions.
C. Generally, the court selects the primary expert witnesses in inquisitorial jurisdictions and the parties do not hire them directly.
D. Generally, the parties select expert witnesses in inquisitorial jurisdictions but not in adversarial jurisdictions.  

Show Answer

Question # 15

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

A. True 
B. False 

Show Answer

Question # 16

Which of the following typically does NOT need to be present for communications betweenan attorney and the attorney’s client to be protected by a legal professional privilege?

A. Communication between a legal advisor and a client 
B. Purpose of the communications was to seek or provide legal advice 
C. A written contract with the attorney requiring confidentiality 
D. Intent to keep the communications confidential 

Show Answer

Question # 17

Management at ABC Org. suspects that Marcia, an employee in charge of negotiatingvendor contracts, has a conflict of interest. For ABC Org.'s conflict-of-interest claim to beactionable, which of the following scenarios must be TRUE?

A. The alleged conflict must have resulted in a direct personal benefit for Marcia. 
B. Marcia must have failed to disclose that she had a personal or economic interest in amatter that could influence her professional role.
C. Marcia must have informed the organization that she had a connection to one or more ofthe vendors with whom she was negotiating.
D. The alleged conflict must have resulted in a financial loss for the organization. 

Show Answer

Question # 18

In most countries employers must provide notice to their employees before they implement an employee monitoring program 

A. True 
B. False 

Show Answer

Question # 19

Frederick has multiple high-volume foreign bank accounts. The country he lives in requireshim to report such accounts annually for tax purposes but he regularly and intentionallyfails to report his accounts in order to reduce the amount of taxes he must pay. Which ofthe following schemes has Frederick MOST LIKELY committed?

A. A tax credit evasion scheme 
B. A value-added tax evasion scheme 
C. An excise tax evasion scheme 
D. An income and wealth tax evasion scheme 

Show Answer

Question # 20

The________________requires that an employee act solely in the best interest of theiremployer, free of any serf-dealing, conflicts of interest, or other abuse that results in apersonal advantage

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

Show Answer