ACFE CFE-Fraud-Investigations-and-Legal-Issues Exam Questions Instant Access

Question 1

Which of the following situations would MOST LIKELY require access to nonpublic records to develop evidence?

AFinding out where a person lives

BReviewing an individual's personal mobile phone records

CObtaining a company's business filings

DDetermining who owns a piece of real estate

Answer : B

Phone records are classified as nonpublic records. The Fraud Examiners Manual explains that personal telephone and mobile records usually require consent, subpoena, or warrant to access. Public records, by contrast, include real property ownership and corporate filings. Therefore, B is correct.

Question 2

Which of the following, if available, would help an organization recover losses from an instance of internal fraud?

APrivilege insurance

BCustomer liability policy

CFidelity insurance

DDeposition

Answer : C

This question tests your knowledge of Domain 10.

In the context of Basic Principles of Evidence, specifically relating to privilege, the question asks about the core concepts in this area.

The correct answer is C: Fidelity insurance.

This question tests knowledge of evidence principles. The correct answer correctly distinguishes between types of evidence, admissibility requirements, or evidentiary privileges. Proper handling of evidence is crucial for successful fraud investigations and prosecutions.

- CFE Exam Content Outline: Domain 10: Basic Principles of Evidence

- privilege

- Fraud Examiners Manual, Law Section

Question 3

Vishal, a Certified Fraud Examiner (CFE). has just initiated an interview with Steve, a fraud suspect. After a short introduction. Vishal jokes about the fact that he and Steve are wearing the same tie and then proceeds to ask Steve about the previous night's major sporting event Vishal is attempting to

AEstablish the interview theme

BCondition the witness.

CEstablish rapport

DExhibit passive listening.

Answer : C

''Introductory questions should be designed to establish rapport... the interviewer must establish some common ground with the respondent before he begins the fact-gathering portion of the interview. Interviewers usually establish rapport by spending a few minutes with the respondent in an informal dialogue''.

Thus, Vishal's small talk about ties and sports is rapport-building.

Question 4

Which of the following statements is TRUE regarding the authentication of evidence in most common law systems?

AFor evidence to be authenticated, it must be certified by the clerk of the court trying the case.

BDigital records can be authenticated by a witness who has personal knowledge.

CUnauthenticated exhibits are admissible at trial if they are offered as circumstantial evidence.

DThe purpose of authentication is to show that the evidence submitted is relevant to the case.

Answer : B

Authentication is the process of showing that evidence is what its proponent claims it to be. In common law evidence systems, digital records may be authenticated through testimony from a witness with personal knowledge, circumstantial evidence showing distinctive characteristics, or certified business-record procedures. A witness might authenticate digital records by explaining how the records were created, obtained, maintained, and preserved. Option A is incorrect because certification by a court clerk is not the universal requirement for authentication. Option C is wrong because unauthenticated exhibits are generally inadmissible regardless of whether they are direct or circumstantial evidence. Option D confuses authentication with relevance; authentication concerns genuineness, not whether the evidence tends to prove a material issue.

Question 5

An employee submits a reimbursement request to their company for a $250 lunch with a client. Which of the following options would be circumstantial evidence that the employee committed an expense reimbursement scheme?

AThe client presents a receipt showing that they paid for the lunch with their own credit card.

BThe restaurant requires reservations and the restaurant's logbook shows no record of the lunch.

CThe client provides testimony that they never had lunch with the employee.

DAn email authored by the employee is submitted in which they confess to a coworker that the lunch cost less than $250.

Answer : B

Circumstantial evidence proves a fact indirectly through inference rather than directly proving the disputed fact. The restaurant's reservation logbook showing no record of the lunch does not directly prove the employee lied, but it strongly supports an inference that the claimed lunch did not occur. That makes option B circumstantial evidence. Option C is direct evidence because the client personally testifies that the lunch never occurred. Option D is also direct evidence because the employee's own email confession directly addresses the false reimbursement. Option A is stronger documentary evidence that the client paid, but the logbook example best illustrates an indirect proof pattern. Fraud examiners often use circumstantial evidence to support conclusions when direct admissions or eyewitness testimony are unavailable.

Question 6

Management at ABC Org. suspects that Marcia, an employee in charge of negotiating vendor contracts, has a conflict of interest. For ABC Org.'s conflict-of-interest claim to be actionable, which of the following scenarios must be TRUE?

AThe alleged conflict must have resulted in a direct personal benefit for Marcia.

BMarcia must have failed to disclose that she had a personal or economic interest in a matter that could influence her professional role.

CMarcia must have informed the organization that she had a connection to one or more of the vendors with whom she was negotiating.

DThe alleged conflict must have resulted in a financial loss for the organization.

Answer : B

This question tests your knowledge of Domain 7.

In the context of Individual Rights During Examinations, specifically relating to employee, the question asks about TRUE, ABC.

The correct answer is B: Marcia must have failed to disclose that she had a personal or economic interest in a matter that could influence her professional role..

This question relates to individual rights during examinations. The correct answer accurately describes the legal protections, obligations, or privacy considerations that apply in workplace investigations. Fraud examiners must balance investigative needs with legal protections for individuals.

- CFE Exam Content Outline: Domain 7: Individual Rights During Examinations

- employee

- Fraud Examiners Manual, Law Section

Question 7

Which of the following statements concerning access to nonpublic records is FALSE?

AWhen civil litigation has commenced, a party often may obtain a subpoena or legal order for an individual's relevant bank records.

BA fraud examiner can request a business's bank records even if the business is not legally obligated to comply.

CAn audit clause can be designed to allow a party to inspect the books of a business partner or vendor.

DDuring the government's criminal investigation, a fraud examiner not employed by the government has a right to access relevant documents that the government has obtained.

Answer : D

The manual notes:

''Records subpoenaed in a criminal case usually are available only to the government during the investigation, and perhaps thereafter if not disclosed at trial''.

Thus, statement D is false.

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