ACFE CFE-Law Exam Practice Test Instant Access

Question 1

Which of the following is the MOST ACCURATE statement about serf-regulatory organizations (SROs) in the securities industry?

AAn SRO generally has sole regulatory authority over the securities industry in the jurisdiction in which it operates

BIn most jurisdictions. SROs are prohibited from participating in the resolution of disputes related to securities transactions

CAn SRO is a governmental entity that exercises regulatory authority over the securities industry in its jurisdiction

DIn some jurisdictions SROs establish the standards and rules under which members of the securities industry operate

Answer : D

Question 2

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

ACivil jury trials must have the same number of jurors as in criminal jury trials.

BNeither side may appeal an adverse judgment in a civil case

CJury verdicts m civil trials must always be unanimous

Din most civil cases, the standard of proof is the preponderance of the evidence

Answer : C

Question 3

Greta is convicted of white-collar crime. However, her sentence is suspended in return for her promise of good behavior. Which of the following BEST describes Greta's sentence?

ADeterminate sentence

BProbation

Cindeterminate sentence

DDeferred prosecution agreement

Answer : B

Question 4

Which of the following statements concerning alternative remittance systems is INCORRECT?

AThe systems are not necessarily illegal.

BFunds are sent and received without the use of traditional financial institutions.

CThe systems are characterized by a lack of physical or digital transfer of currency between payers and payees.

DThe ledgers used typically contain information regarding payers and payees, such as names and account numbers.

Answer : A

Question 5

All of the following are common legal defenses for tax evasion EXCEPT:

AMental illness of the taxpayer

BDeath of the taxpayer

CThe taxpayer s reliance on an attorney or accountant

DThe actions were tax avoidance not tax evasion

Answer : B

Question 6

Which of the following is the MOST ACCURATE statement about rules prohibiting securities broker-dealers from making unsuitable recommendations on investments or investment strategies?

AA suitability violation occurs when a broker does not carry out a trade requested by or promised to a customer

BA suitability violation occurs when a broker recommends an investment or investment strategy that is inconsistent with the client's objectives

CA suitability violation occurs when a broker trades in a client's account without obtaining prior approval for making the transaction(s).

DA suitability violation occurs when a broker enters into transactions and manages a client's account for the purpose of generating excessive commissions

Answer : D

Question 7

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

ACFE Certified Fraud Examiner (CFE) - Law CFE-Law Exam Practice Test