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

1. Which of the following is NOT a legal element that must be shown to prove a claim for fraudulent misrepresentation of material facts?

A) The defendant made a false statement (i, e., a misrepresentation of fact)
B) The victim suffered damages as a result of the misrepresentation
C) The defendant acted negligently
D) The victim relied on the misrepresentation

2. In an inquisitorial judicial proceeding, which of the following parties is primarily responsible for questioning witnesses and generally has a larger role in the evidence-gathering process?

A) The judge
B) The prosecution
C) The grand jury
D) The defendant ' s counsel

3. An attorney hires a fraud examiner to work on an embezzlement case. In connection with the case, the attorney emails the fraud examiner a copy of a memorandum that is protected by a legal professional privilege. Which of the following statements is most accurate?

A) The attorney did not waive the privilege because the attorney hired the fraud examiner to work on the case.
B) The attorney waived the privilege because they transmitted the protected information to a third party.
C) The attorney did not waive the privilege because the legal professional privilege belongs to the client, not the attorney.
D) The attorney waived the privilege because they used email to transmit the protected information.

4. Even if a government agent obtains consent to search by force duress or bribery, the consent will still constitute a valid waiver of the consenting party ' s right to be free from searches.

A) False
B) true

5. Diana is conducting a fraud investigation and wants to use an informant. The informant requests confidentiality and payment in exchange for their cooperation. If Diana agrees, which of the following options describes a best practice that she should follow?

A) Omitting any references to the informant in the final report to ensure confidentiality.
B) Explaining to the informant that they must be willing to sign a receipt to be paid.
C) Referring to the informant by their full name when writing an investigation memorandum.
D) Asking a third party to provide payment to the informant to make the paper trail less obvious.

Solutions: