ACFE CFE-Law Exam Questions Instant Access

Question 1

Which of the following statements about the International Organization of Securities Commissions (IOSCO) s TRUE?

AIOSCO is a self-regulatory organization for companies that have securities traded on international securities markets

BIOSCO provides a forum for regular cooperation on banking supervisory matters affecting developing nations

CIOSCO is an oversight body responsible for issuing and enforcing regulations that govern all international securities markets

DIOSCO is recognized as the international standard-setter for securities markets

Answer : D

Question 2

During a bankruptcy bustout scheme, or planned bankruptcy, the debtor committing the fraud typically performs which of the following actions?

AColludes with creditors and the trustee to pay some creditors but not ethers

BBribes a trustee to overlook assets in the debtor's possession

CConspires with suppliers to produce fraudulent invoices

DPurchases large quantities of goods on credit

Answer : D

Question 3

Which of the following is the MOST ACCURATE statement about the different types of alternative dispute resolution'?

AThe agreements reached in mediations are generally nonbinding.

BIn a mediation session, the mediator decides who should win the dispute at issue

CThe decisions reached in all arbitrations are always binding

DIn an arbitration proceeding the arbitrator acts as a judge or jury by deciding the dispute at issue on its merits

Answer : C

Question 4

Grant, a fraud examiner is investigating Beatrice for embezzlement on his employer's behalf. During his investigation. Grant learns that Beatrice has cheated on her spouse and he tells several of Beatrice's coworkers about it Beatrice discovers that Grant revealed the unflattering (albeit true) information about her and decides to file a claim of defamation against Grant. Which of the following is the BEST explanation of why Beatrice will not win her defamation case?

AThe information was true

BThe communications to the subject's coworkers were privileged

CThe news was not communicated to enough people

DThe statement was not printed and distributed

Answer : A

Question 5

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

Question 6

Aliyah is an employee at Chatham, a publicly traded corporation, and she owns shares of Chatham's stock. Aliyah learns that Chatham is going to publicly announce low earnings, so she sells her shares of Chatham's stock. If her conduct is illegal in the jurisdiction where she works and resides, then what type of crime did Aliyah MOST LIKELY commit?

AChurning

BInsider trading

CTrading on margin

DFutures fraud

Answer : B

Question 7

The________________requires that an employee act solely in the best interest of their employer, free of any serf-dealing, conflicts of interest, or other abuse that results in a personal advantage

ADuty of care

BDuty of responsibility

CDuty of employee trust

DDuty of loyalty

Answer : D

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