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

1. Talia has been hired by SBS Inc. to implement a new data analysis program to search for warning signs of potential fraud within the company. Which of the following steps should Talia conduct first to MOST EFFECTIVELY use data analysis techniques for such an initiative?

A) Build a profile of potential frauds.
B) Monitor the data.
C) Identify the relevant data
D) Cleanse and normalize the data.

2. Which of the following statements concerning civil trials in civil law jurisdictions is MOST ACCURATE?

A) The trials occur in two stages: the pretrial stage and the trial stage.
B) The trials are typically a single event rather than a continual series of meetings.
C) The parties are responsible for recording evidence in the trial record.
D) It is common for the judge to choose an expert witness to testify on technical matters.

3. Which of the following statements about how fraud examiners should approach fraud examinations is FALSE?

A) When conducting fraud examinations, fraud examiners should start with specific details and move toward more general information.
B) In most examinations, fraud examiners should start interviewing the least involved candidates and proceed toward those who are potentially more involved.
C) When conducting fraud examinations, fraud examiners should begin with general information that is known and then move to the more specific details.
D) When conducting fraud examinations, fraud examiners should adhere to the fraud theory approach.

4. Bob receives a memorandum from his attorney that is protected by a legal professional privilege Bob emails the memorandum to a third party who has no need to know the information in the memorandum Which of the following statements is MOST ACCURATE?

A) Bob did not walve the privilege because the legal professional privilege belongs to the attorney, not the client
B) Bob might have waived the privilege because he transmitted the protected information to a third party who has no need to know the information
C) Bob might have waived the privilege because he used email to transmit the protected information.
D) Bob did not waive the privilege because the legal professional privilege cannot be waived by transmitting protected information to a third party

5. Which of the following statements regarding the planning process for admission-seeking interviews is MOST ACCURATE?

A) Fraud examiners should seek to interview suspects remotely whenever possible because remote interview settings are more comfortable for interviewees and reduce potential distractions.
B) Chairs in the interview room should be positioned close together with no more than two feet of space between them to foster a sense of assurance and trust during the interview.
C) The interviewee may bring a friend or relative to the interview for translation purposes if an interpreter is required to ensure that their responses are translated accurately.
D) Fraud examiners should allow the presence of outside observers in interviews if laws or regulations in the jurisdiction require their presence or there are language barriers.

Solutions: