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

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

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

2. Which of the following is a legal element that the government must show to prove a conspiracy claim?

A) The conspirators accomplished the purpose of the conspiracy that was initially established.
B) All of the conspirators knowingly committed an overt act in furtherance of the conspiracy.
C) The defendant intentionally or unintentionally joined and participated in the illegal scheme.
D) The defendant entered into an agreement to commit an illegal act with at least one other person.

3. Which of the following is NOT required for a contract transaction or scheme to be classified as an investment contract?

A) An investment of money or other asset
B) investment m a common enterprise
C) The expectation of making a profit
D) Profits derived solely from the investor ' s management activity

4. Which of the following is TRUE of a well-written fraud examination report?

A) Technical terms should be included whenever possible to convey professionalism.
B) The details of witness interviews should be reported in a separate memorandum.
C) The report should discuss only the evidence that substantiates the fraud allegation
D) All information provided by witnesses, regardless of relevance, should be included in the report.

5. Which of the following is NOT a common use of public sources of information?

A) Locating people and their assets
B) Corroborating or refuting witness statements
C) Searching an individual ' s income tax filings
D) Obtaining background information on individuals

Solutions: