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

1. Each of the following statements concerning cross-examination of witnesses in adversarial jurisdictions is accurate EXCEPT:

A) During cross-examination, opposing counsel is mostly concerned with discovering information that was previously undiscovered in the case.
B) One of the goals of cross-examination is to discredit the witness's testimony.
C) Opposing counsel will generally cross-examine a witness only if it would help the case.
D) If opposing counsel asks a very complex question, then the witness should ask for the question to be rephrased.

2. Willa is chairperson of ACME Construction's board of directors. Willa develops a substance use disorder and falls behind on her duties at ACME. Willa's inattentiveness results in significant losses to ACME shareholders following an incident that likely would have been prevented had she fulfilled her duties. If Willa is sued for violating her fiduciary duties, under which theory is the suit MOST LIKELY to be filed?

A) Violating the duty of responsibility.
B) Violating the duty of loyalty.
C) Violating the duty of care.
D) Violating the duty of transparency.

3. Which of the following statements concerning civil trials in civil law jurisdictions is most accurate?

A) Civil trials are typically a single event rather than a continual series of meetings and correspondences.
B) Neither side may appeal an adverse judgment in a civil case.
C) The standard of proof in civil trials is often described as the inner conviction of the judge.
D) The standard of proof in civil trials is lower than it is in criminal trials.

4. Sarah is conducting an admission-seeking interview of a suspect. Throughout the interview, the suspect makes little eye contact with Sarah. Based on this information atone, can Sarah conclude that the suspect is being deceptive?

A) Yes, because it is safe to assume that suspects who avoid eye contact are most likely being deceptive.
B) No, because avoiding eye contact is not directly linked to deception.
C) No, because this is not enough information to conclude that the suspect is being deceptive
D) Yes, because avoiding eye contact is a sign of deceptive.

5. Abram, a fraud examiner, is attempting to determine the disposition of funds and assets that were acquired illicitly by Niko, a procurement employee of TLM Corp., who allegedly conducted a bribery scheme with company vendors. Which of the following statements regarding why Abram should obtain Niko's credit card records and statements is MOST ACCURATE?

A) Abram should obtain Niko's credit card records because they will show detailed information about suspicious deposits.
B) Abram should obtain Niko's credit card statements because they will show whether Niko used illicit funds to pay the credit card bills.
C) Abram should obtain Niko's credit card statements because they likely contain information about Niko' s credit history.
D) Abram should obtain Niko's credit card records because they can reveal Niko's spending patterns and habits.

Solutions: