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

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

A) There is no tax deficiency.
B) The taxpayer has filed for bankruptcy.
C) The taxpayer relied on an attorney or accountant.
D) The taxpayer has a mental illness.

2. Which of the following would be direct evidence that an employee committed a cash larceny scheme that resulted in the theft of $800 from their employer ' s safe?

A) A witness testifies that the employee was usually the last person to leave the office.
B) A coworker states that the employee appeared to be nervous on the day of the theft.
C) A witness testifies that they saw the employee take the money.
D) A diagram is used to display the location of the employer ' s safe.

3. Which of the following statements regarding data visualization is TRUE?

A) Geospatial analysis displays keywords of various sizes to indicate their frequency and level of importance.
B) Tree maps provide a hierarchical structure of data using rectangular space that is divided into regions.
C) Color-coding and compatibility are the objectives of communications involving data visualizations.
D) Link analysis depicts intersections between various data types and their corresponding geographical locations.

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

A) A judgment in one jurisdiction is enforceable against assets in another country if the foreign jurisdiction has laws or agreements that recognize foreign judgments.
B) A judgment in a domestic jurisdiction can be used to recover a defendant's assets in a foreign jurisdiction, regardless of the foreign jurisdiction.
C) A judgment in a foreign jurisdiction can be enforceable in a domestic jurisdiction if it involves criminal matters but not civil matters.
D) A judgment in a domestic jurisdiction can be enforced in a foreign jurisdiction only with the consent of both parties and the judge.

5. Which of the following terms BEST describes the process or methodology of resolving allegations of fraud from inception to disposition, as well as assisting in the prevention and detection of fraud?

A) Fraud response.
B) Fraud management.
C) Fraud examination.
D) Fraud deterrence.

Solutions: