Key details for this exam, checked against the published exam outline
Each question shows the correct answer and an explanation of why it is right
IBC Manufacturing is a private company in a jurisdiction in which the public has the legal right to be free from unreasonable search and seizure by government authorities. An investigator at IBC searches the desk of Denise an IBC employee and finds illegal narcotics. The investigator seizes the narcotics and turns them over to members of law enforcement. The investigator violated Denises rights by failing to obtain a search warrant before conducting the search
This question tests your knowledge of Domain 7.
In the context of Individual Rights During Examinations, specifically relating to employee, the question asks about IBC.
The correct answer is A: True.
This question relates to individual rights during examinations. The correct answer accurately describes the legal protections, obligations, or privacy considerations that apply in workplace investigations. Fraud examiners must balance investigative needs with legal protections for individuals.
- CFE Exam Content Outline: Domain 7: Individual Rights During Examinations
- employee
- Fraud Examiners Manual, Law Section
Scarlett, a Certified Fraud Examiner (CFE), is conducting an admission-seeking interview of Plum, a fraud suspect. After Scarlett defused Plum's alibis. Plum became withdrawn and slowly began to slouch in her chair, bowing her head. What should Scarlett do now?
When a suspect becomes withdrawn or emotional after alibis are diffused: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.
During an interview, Alex asked a fraud suspect if he could retrieve the suspect's account records from her bank. The suspect said, "yes." but she did not provide consent in writing Although the suspect orally consented, the suspect's bank is NOT required to allow Alex to access the suspect's account records at this point.
Fraud examiners can obtain documentary evidence by consent, subpoena, or other legal means. While oral consent may sometimes be sufficient, bank records from financial institutions generally require written consent. Without written consent, the bank is not required to provide access. As stated in the manual:
''Accessing a subject's bank records from financial institutions, for instance, generally requires written consent. If no consent is given... legal action might be required, most often a subpoena or other court order''.
Thus, although the suspect gave oral consent, Alex cannot access the bank records without written authorization or legal order.
Leslie, a business owner, submits tax information regarding her company's finances to her country's taxing authority. The taxing authority allows companies to subtract the cost of production from their gross sales to determine the taxable income. To reduce her tax liability, Leslie inflates the costs of production on her tax forms. Which of the following schemes has Leslie MOST LIKELY committed?
This question tests your knowledge of Domain 6.
In the context of Tax Fraud, specifically relating to tax evasion, the question asks about her company's finances to her country's taxing authority, MOST LIKELY.
The correct answer is B: A falsified tax deduction scheme.
This question focuses on tax fraud concepts. The correct answer distinguishes between legal tax avoidance and illegal tax evasion, or identifies specific tax evasion schemes. Tax fraud investigations require specialized knowledge of tax laws and common evasion techniques.
- CFE Exam Content Outline: Domain 6: Tax Fraud
- tax evasion
- Fraud Examiners Manual, Law Section
Which of the following statements about the appeals process in cranial cases is MOST ACCURATE?
This question tests your knowledge of Domain 1.
In the context of Overview of the Legal System, specifically relating to civil, common law, the question asks about MOST ACCURATE, the appeals process in cranial cases is MOST ACCURATE.
The correct answer is A: In common law jurisdictions, appellate courts are generally not permitted to make their own factual determinations when reviewing a case.
This question relates to the legal system framework. Understanding the distinction between different legal systems and processes is crucial for fraud examiners. The correct answer accurately describes the relationship between different legal entities and their jurisdictions.
- CFE Exam Content Outline: Domain 1: Overview of the Legal System
- civil
- common law
- Fraud Examiners Manual, Law Section
508 questions covering all exam domains
7 domains from the ACFE CFE-Fraud-Investigations-and-Legal-Issues exam outline, with approximate weightings. Every sample question above is tagged with the domain it comes from
Learn the definition, elements and characteristics of fraud. Understand major fraud classifications including asset misappropriation, corruption and financial statement fraud. Examine behavioral and organizational factors that contribute to occupational fraud.
Apply systematic approaches to planning and conducting fraud examinations. Develop fraud response plans and understand the basis of predication. Learn to preserve confidentiality and document the investigation process.
Sample question from this domain above: Q2
Learn procedures for collecting, preserving and documenting evidence. Understand chain of custody requirements and evidence admissibility. Apply techniques for securing physical, documentary and digital evidence.
Master interview planning and questioning techniques. Learn behavioral assessment methods to detect deception. Conduct effective interrogations while maintaining legal and ethical standards.
Understand rules governing admissibility of evidence in legal proceedings. Learn about burden of proof, relevance, materiality and competence of evidence. Apply evidence rules to support investigation conclusions.
Recognize individual legal rights during fraud investigations. Understand privilege protections including attorney-client and work product privileges. Learn how to navigate privilege issues in investigation activities.
Prepare for and deliver expert witness testimony. Learn qualification requirements and direct and cross-examination techniques. Understand the role of CFE professionals in litigation support.
Common questions about the exam itself
