ACFE CFE-Law Exam Questions Instant Access

Question 1

Slater has been appointed as a bankruptcy administrator. According to the recommendations of the World Bank Principles for Effective Insolvency and Creditor/Debtor Regimes (World Bank Principles), which of the following statements concerning Slater's role as bankruptcy administrator is MOST ACCURATE?

ASlater may investigate all contracts the debtor entered into, but he does not have the power to cancel them without the debtor's permission.

BSlater may request relevant information from the debtor's agents or others with knowledge of the debtor's affairs, but he cannot force them to provide it.

CSlater may collect, preserve, and dispose of the debtor's property.

DSlater may not interfere with contracts signed by the debtor.

Answer : C

Question 2

Ethan a U S resident, is running a Ponzi scheme As part of the scheme, he uses the U S mail system to send promotional materials to potential victims in France If the US government decides to prosecute Ethan, which of the following would provide the MOST LIKELY basis for the charges?

AMail fraud

BWire fraud

CInsider trading fraud

DCommunications fraud

Answer : A

Question 3

__________ insurance is a type of insurance under which an insured entity is covered against losses caused by the dishonest or fraudulent acts of its employees.

AFidelity

BInherent risk

COpportunity

DResidual risk

Answer : A

Question 4

Which of the following is required for a contract, transaction, or scheme to qualify as an investment contract?

AThe investment must not have been made with expectations of making a profit.

BThe investment must be made in cash.

CThe investment is in a common enterprise.

DThe investment activity is managed solely by the efforts of the investor and no others.

Answer : C

Question 5

Which of the following describes the purpose of an expert witness testimony at trial?

ATo offer an opinion as to a party's guilt or innocence

BTo give a firsthand account of the fads of the case on the record

CTo give an opinion when the fact finder needs specialized knowledge

DNone of the above

Answer : C

Question 6

Which of the following choices is a method of pretrial civil discovery that is often found in common law jurisdictions?

AInjunctions

BProduction writs

CIndictments

DAffidavits of documents

Answer : D

Question 7

Which of the following statements regarding using front businesses as a method of laundering money is MOST ACCURATE?

AFront businesses are a favored method because it is easy to match the costs associated with providing customers food, liquor, and entertainment with the revenues produced.

BBars, restaurants, and nightclubs are commonly used as front businesses because these venues tend to charge relatively low prices and customers rarely vary in their purchases.

CFront businesses can often be detected because these businesses have a large number of customers during peak operating hours and high income.

DA front business that conducts legitimate business can provide cover for delivery and transportation related to illegal activity.

Answer : D

ACFE Certified Fraud Examiner (CFE) - Law CFE-Law Exam Questions