ACFE CFE-Fraud-Investigations-and-Legal-Issues Practice Exam Questions & Answers

This question tests your knowledge of Domain 10.

In the context of Basic Principles of Evidence, specifically relating to privilege, the question asks about NOT.

The correct answer is D: A lawsuit has been filed.

This question tests knowledge of evidence principles. The correct answer correctly distinguishes between types of evidence, admissibility requirements, or evidentiary privileges. Proper handling of evidence is crucial for successful fraud investigations and prosecutions.

- CFE Exam Content Outline: Domain 10: Basic Principles of Evidence

- privilege

- Fraud Examiners Manual, Law Section

This question tests your knowledge of Domain 2.

In the context of The Law Related to Fraud, specifically relating to misrepresentation, conspiracy, obstruction, the question asks about MOST LIKELY.

The correct answer is A: Obstruction of justice.

This question addresses fraud-related laws. The correct answer identifies the proper legal concept or violation that applies in the described scenario. Fraud examiners must understand these legal principles to properly identify and address fraudulent activities.

- CFE Exam Content Outline: Domain 2: The Law Related to Fraud

- misrepresentation

- conspiracy

- obstruction

- Fraud Examiners Manual, Law Section

Explanation with Extracts = Predication requires sufficient circumstances to suggest fraud. The CFE Prep Guide explains:

''Fraud examiners should not investigate beyond the available predication... There is insufficient predication to confront Wallace or to make any direct allegations about fraud, but Carter does have adequate predication to make discreet inquiries''.Similarly, Arnold may discreetly inquire but not accuse or search property without further evidence.

The main purpose of imaging a seized computer's hard drive is to create a forensic copy that can be used for analysis while preserving the original evidence. A forensic image is an exact duplicate of the storage media, created using proper forensic tools and verified for accuracy. Investigators generally analyze the image rather than the original device to reduce the risk of altering original evidence. Option A is incorrect because forensic analysis should not normally be performed directly on the suspect system. Option B describes documentation of the scene, which is important but not the purpose of imaging. Option D is not the primary objective. Imaging protects evidence integrity and supports later authentication and admissibility.

This question tests your knowledge of Domain 5.

In the context of Money Laundering, specifically relating to FATF, the question asks about FATF, cross-border transfers of currency Trevor is traveling from Country A to Country B while carrying $16,000 in cash which exceeds Country B's reporting threshold Trevor is required to disclose the amount of currency he is carrying to authorities in Country B.

The correct answer is A: True.

This question addresses money laundering concepts. The correct answer correctly identifies the stage, method, or regulatory framework related to money laundering or anti-money laundering efforts. Understanding these processes is critical for fraud examiners working to detect and prevent financial crimes.

- CFE Exam Content Outline: Domain 5: Money Laundering

- FATF

- Fraud Examiners Manual, Law Section

Predictive analytics is defined as:

''the use of historical data combined with statistical, analytical, and machine learning techniques to create models that capture trends and produce forecasts''.

So, option C best describes predictive analytics.

When a suspect becomes withdrawn or emotional after alibis are diffused:

''The interviewer should not remain silent or discourage the accused from showing emotion. Such reactions often indicate consideration of confession. At this point, the interviewer should present an alternative question and continue reinforcing guilt with evidence''.

Thus, Scarlett should continue presenting evidence.