How difficult is the CFE-Law exam and what do I need to pass?

The CFE-Law exam is a rigorous assessment that requires solid understanding of both legal concepts and fraud examination principles. You need to pass all three sections of the CFE exam, with CFE-Law being one component alongside Fraud Schemes and Financial Crimes and Fraud Investigations. The exam tests practical knowledge and critical thinking, and candidates typically spend 100-200 hours preparing depending on their background.

What background or experience do I need before taking CFE-Law?

You must be an Associate Member of the ACFE in good standing and accumulate at least 40 eligibility points through education and fraud-related work experience. Many candidates have a bachelor's degree plus fraud-related work experience in accounting, auditing, law, investigation, or loss prevention. You do not need prior certification, though fraud examination experience is valuable preparation.

Which section of the CFE exam do candidates struggle with most and why?

The Law section challenges many candidates because it requires understanding of both criminal and civil legal frameworks, evidence rules, and investigative procedures that vary by jurisdiction. Success depends on grasping how legal concepts apply to fraud investigation and prosecution rather than memorizing statutes. Focusing on practical application scenarios and understanding the intersection between fraud investigation and legal requirements helps most.

How long should I spend preparing for CFE-Law?

Realistic preparation typically ranges from 100 to 200 hours depending on your current knowledge of legal frameworks and fraud examination. Many candidates study for 2 to 4 months while balancing work and other commitments. The ACFE offers structured prep courses and the Fraud Examiners Manual as core study resources.

What happens on exam day for CFE-Law?

You take the exam either remotely through Prometric's ProProctor online platform from a private location, or in-person at a Prometric Testing Center. The exam is closed-book and closed-notes with 100 multiple-choice and true-false questions to complete in 120 minutes. You must ensure your environment meets specific requirements including a single monitor, proper furniture, and no other people present.

What are the rules for retaking CFE-Law if I fail?

If you fail the Law section, you pay USD 110 to retake that section only. You do not need to retake sections you passed. You can attempt each section up to five times. Additional fees apply if you reschedule within five to 29 days of your appointment, and you cannot reschedule less than five days before your test date.

How long is the CFE credential valid after I pass CFE-Law?

The CFE credential does not expire, but maintaining it requires ongoing Continuing Professional Education (CPE). You must earn 20 CPE credits per calendar year or 40 credits per two-year rolling period and pay annual ACFE membership dues to keep your certification active.

What job roles does the CFE-Law credential prepare me for?

CFE-Law is designed for attorneys, legal compliance officers, fraud investigators, auditors, and law enforcement personnel who need to understand the legal aspects of fraud detection and prosecution. Many CFEs work in internal audit, government agencies, corporate compliance, law firms, and forensic accounting firms where they apply their legal knowledge to identify and investigate fraud.

How does CFE-Law relate to the other sections of the CFE exam?

CFE-Law is one of three required sections you must pass to earn the Certified Fraud Examiner credential. The other sections are Fraud Schemes and Financial Crimes and Fraud Investigations, plus Fraud Prevention and Deterrence. Each section tests different competencies but together they cover the complete fraud examination body of knowledge. You do not need to pass all sections on your first attempt.

Can I take just the CFE-Law section or do I have to sit all three sections?

You must pass all three CFE exam sections to earn the Certified Fraud Examiner credential, though you can take them in any order and on different dates. Each section stands alone, so if you pass one you do not lose credit if you fail another. You only pay for sections you fail if you need to retake them.

CFE-Law Practice Questions with Explained Answers

5 Free Questions · Last reviewed: September 14, 2026 · Prepared & Reviewed by the ValidExamDumps Editorial Team

158 Practice Questions (Our Bank)

120 minutes Exam Duration

70% Passing Score

Exam Code: CFE-Law
Full Name: Certified Fraud Examiner (CFE) - Law
Issuing Body: Association of Certified Fraud Examiners (ACFE)
Question Format (Our Bank): Multiple Choice
Exam Fee: USD 480 (included as part of CFE Exam Application fee)
Delivery: Online proctored via Prometric ProProctor platform or in-person at Prometric Testing Centers
Eligibility: Must be an Associate Member of the ACFE in good standing and meet minimum 40-point eligibility requirement on CFE Exam Application

Question 1 Domain 2Law

Which of the following is the MOST ACCURATE statement about the UK Bribery Act?

ALike the FCPA the UK Bribery Act contains an explicit exception for facilitating payments

BEven if an organization's anti-corruption program complies with the FCPA, it might not be sufficient for the purpose of complying with the UK Bribery Act

CUnlike the FCPA. the UK Bribery Act makes it a crime to bribe a foreign public official in connection with international business transactions

DThe UK Bribery Act only exercises jurisdiction over individuals and corporate entities for acts of corruption when the offense occurs outside the United Kingdom

Correct Answer: B

Explanation Civil lawsuits follow procedural rules that establish where they can be filed. A pleading is the formal document that starts a civil action, typically a complaint. The venue requirement means the case should be filed in a jurisdiction where the defendant lives or where the events giving rise to the claim occurred. This protects the defendant's rights and ensures a logical connection between the case and the location. The other options would describe incorrect procedural steps or timing.

Question 2 Domain 1Financial Transactions and Fraud Schemes

Which of the following statements concerning judgments involving parties that are in multiple jurisdictions is MOST ACCURATE?

AIf a party obtains a judgment in one jurisdiction, then that party will automatically be able to enforce the judgment wherever the defendant resides.

BWhether a foreign judgment is enforceable always depends on where the defendant's assets are located.

CIf a party obtains a judgment in one jurisdiction, then that party will automatically be able to enforce the judgment in any jurisdiction.

DWhether a foreign judgment is enforceable might depend on whether the two jurisdictions have an enforcement treaty.

Correct Answer: D

Explanation Money laundering happens in three stages. Placement is the first stage, where illegally obtained money enters the financial system. Greta placed her illegal proceeds into a domestic bank account at this point. The second stage, layering, is when she moved funds through multiple accounts and fake transactions to obscure the origin. The third stage, integration, happens when she moved the money back and spent it. Identifying which stage occurred when requires understanding this sequence of actions.

Question 3 Domain 2Law

Allison works for a government contractor She informs the government that her employer has been submitting false claims to the government for payment Later it is discovered that Allison has misappropriated more than $50,000 of her employer's money Alison qualifies as a whistleblower entitled to anti-retaliation protection under the law because of her report to the government Which of the following statements about Allison is CORRECT?

AAllison cannot be fired for misappropriating funds from her employer

BAllison cannot be fired for any reason

CAlison cannot be fired for informing the government of her employee's fraud

DNone of the above

Correct Answer: C

Question 4 Domain 2Law

Which of the following statements concerning front businesses as a method of laundering money is the LEAST ACCURATE?

AA red flag of a front business is the observation of a large number of customers during peak operating hours

BFront businesses provide cover for delivery and transportation related to illegal activity

CFrom criminals' perspective a disadvantage to front businesses is that they generally must pay taxes on the illicit income

DFront businesses benefit launderers by providing a safe place to manage criminal activities

Correct Answer: A

Explanation In a civil lawsuit, a counterclaim is a claim filed by the defendant against the plaintiff. When Company A sued Company B for breach of contract, Company B responded with its own claim alleging fraudulent inducement. This defensive claim by Company B against Company A is a counterclaim. Other terms like cross-claim or third-party claim describe different relationships between parties. Understanding civil procedure terminology helps fraud examiners navigate the legal landscape when pursuing or defending litigation.

Question 5 Domain 2Law

Each of the following is a common legal defense for tax evasion EXCEPT:

AThe taxpayer relied on an attorney or accountant.

BThe taxpayer has filed for bankruptcy.

CThe taxpayer has a mental illness.

DThere is no tax deficiency.

Correct Answer: B

Domain 1: Financial Transactions and Fraud Schemes

This section assesses your comprehension of fraudulent financial transactions within accounting records. Demonstrate knowledge of fundamental accounting and auditing principles, various fraud schemes, and the role of internal controls in fraud deterrence, along with other pertinent accounting and auditing topics.

Sample question from this domain above: Q2

Domain 2: Law

This portion evaluates your understanding of the legal frameworks utilized in prosecuting fraud cases. Measure your awareness of the legal implications associated with conducting fraud examinations, including elements of criminal and civil law, evidentiary rules, and the legal rights of defendants and plaintiffs.

Sample questions from this domain above: Q1 Q3 Q4 Q5

Domain 3: Investigations

This domain evaluates your skills in essential investigative techniques for collecting evidence and identifying fraud perpetrators. Encompasses effective interviewing strategies, methods for obtaining statements, accessing and utilizing public records, techniques for tracking illicit financial activities, recognizing deceptive behavior, and preparing comprehensive investigation reports.

Domain 4: Fraud Prevention and Deterrence

In this segment, candidates are evaluated on their knowledge of fraud motivations and preventive strategies, as well as frameworks related to criminal behavior. Focuses on understanding the conditions that create fraud risk and the controls and awareness programs that reduce that risk.

ACFE CFE-Law Practice Exam Questions & Answers

ACFE CFE-Law Exam Details

Free CFE-Law Practice Questions

What the ACFE CFE-Law Exam Covers

CFE-Law Exam FAQ