CFE-Law Practice ACFE Verified Answers - Pass Your Exams For Sure! [2026]
Valid Way To Pass Certified Fraud Examiner's CFE-Law Exam
To be eligible to take the CFE-Law Certification Exam, candidates must hold a law degree or have completed a certain number of law-related courses. They must also have at least two years of professional experience in the field of fraud prevention and detection. Once they have met these requirements, candidates can register for the exam and prepare for it using study materials provided by the ACFE.
NEW QUESTION # 54
Raj is an employee who works in a jurisdiction that prohibits unreasonable workplace searches and surveillance in areas or items where employees have a reasonable expectation of privacy. In which of the following is Raj MOST LIKELY to have a reasonable expectation of privacy?
- A. A backpack brought from home
- B. A company-issued tablet computer
- C. A filing cabinet in the office lobby
- D. A waste bin m the employee's office
Answer: A
Explanation:
This question tests your knowledge of Domain 7.
In the context of Individual Rights During Examinations, specifically relating to employee, privacy, surveillance, workplace, the question asks about MOST LIKELY.
The correct answer is A: A backpack brought from home.
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.
References:
- CFE Exam Content Outline: Domain 7: Individual Rights During Examinations
- employee
- privacy
- surveillance
- workplace
- Fraud Examiners Manual, Law Section
NEW QUESTION # 55
In an inquisitorial judicial proceeding, which of the following parties is primarily responsible for questioning witnesses and generally has a larger role in the evidence-gathering process?
- A. The grand jury
- B. The judge
- C. The defendant's counsel
- D. The prosecution
Answer: B
Explanation:
This question tests your knowledge of Domain 1.
In the context of Overview of the Legal System, specifically relating to inquisitorial, the question asks about the core concepts in this area.
The correct answer is D: The judge.
This question relates to the legal system framework. Understanding the distinction between different legal systems and processes is crucial for fraud examiners. The correct answer accurately describes the relationship between different legal entities and their jurisdictions. In adversarial systems, opposing parties present their cases before a neutral judge or jury, while in inquisitorial systems, judges take a more active role in investigating cases.
References:
- CFE Exam Content Outline: Domain 1: Overview of the Legal System
- inquisitorial
- Fraud Examiners Manual, Law Section
NEW QUESTION # 56
Which of the following statements about civil actions in most jurisdictions is CORRECT?
- A. Civil actions begin with the filing of a pleading, usually in the jurisdiction where the defendant resides or where the claim originated.
- B. The plaintiff's complaint does not need to state the grounds for legal relief.
- C. The plaintiff's complaint must typically contain a copy of all documents that might be relevant to the case.
- D. All of the above are correct.
Answer: A
Explanation:
This question tests your knowledge of Domain 1.
In the context of Overview of the Legal System, specifically relating to civil, the question asks about civil actions in most jurisdictions is CORRECT, CORRECT.
The correct answer is B: Civil actions begin with the filing of a pleading, usually in the jurisdiction where the defendant resides or where the claim originated..
This question relates to the legal system framework. Understanding the distinction between different legal systems and processes is crucial for fraud examiners. The correct answer accurately describes the relationship between different legal entities and their jurisdictions.
References:
- CFE Exam Content Outline: Domain 1: Overview of the Legal System
- civil
- Fraud Examiners Manual, Law Section
NEW QUESTION # 57
Which of the following statements about the International Organization of Securities Commissions (IOSCO) is TRUE?
- A. IOSCO is responsible for enforcing regulatory standards that govern all international securities markets.
- B. IOSCO is an international industry association that sets global accounting and financial reporting standards.
- C. IOSCO's primary goal is to establish a separate set of securities regulations for securities exchanges in developing nations.
- D. IOSCO is comprised of commissioners and administrators responsible for regulating securities and administering securities laws in their countries.
Answer: D
Explanation:
This question tests your knowledge of Domain 4.
In the context of Securities Fraud, specifically relating to securities, IOSCO, the question asks about the International Organization of Securities Commissions (IOSCO) is TRUE, TRUE, IOSCO.
The correct answer is B: IOSCO is comprised of commissioners and administrators responsible for regulating securities and administering securities laws in their countries..
This question tests knowledge of securities fraud and regulation. The correct answer accurately describes the role of regulatory bodies, securities laws, or fraud schemes in this context. Securities fraud is a specialized area requiring knowledge of specific regulations and oversight mechanisms.
References:
- CFE Exam Content Outline: Domain 4: Securities Fraud
- securities
- IOSCO
- Fraud Examiners Manual, Law Section
NEW QUESTION # 58
John deliberately understated his income so that he could pay a lesser amount on his tax bill. This is an example of tax avoidance.
- A. False
- B. True
Answer: A
Explanation:
This question tests your knowledge of Domain 6.
In the context of Tax Fraud, specifically relating to tax avoidance, the question asks about the core concepts in this area.
The correct answer is B: False.
This question focuses on tax fraud concepts. The correct answer distinguishes between legal tax avoidance and illegal tax evasion, or identifies specific tax evasion schemes. Tax fraud investigations require specialized knowledge of tax laws and common evasion techniques.
NEW QUESTION # 59
Evidence that tends to make some tact at issue more or less likely than it would be without the evidence is called:
- A. Testamentary evidence
- B. Relevant evidence
- C. Demonstrative evidence
- D. Circumstantial evidence
Answer: B
Explanation:
This question tests your knowledge of Domain 10.
In the context of Basic Principles of Evidence, specifically relating to circumstantial evidence, the question asks about the core concepts in this area.
The correct answer is D: Relevant evidence.
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.
References:
- CFE Exam Content Outline: Domain 10: Basic Principles of Evidence
- circumstantial evidence
- Fraud Examiners Manual, Law Section
NEW QUESTION # 60
Before Monique's criminal trial for embezzlement, she contacts witnesses against her and offers to pay them if they change their stories regarding the embezzlement. Monique's actions would MOST LIKELY cause the government to bring additional charges against her for:
- A. Conspiracy to influence the court
- B. Fraudulent misrepresentation
- C. Obstruction of justice
- D. Judicial extortion
Answer: C
Explanation:
According to the ACFE Fraud Examiners Manual, Law Section, under The Criminal Justice System and The Law Related to Fraud , obstruction of justice occurs when a person corruptly interferes with the administration of law or the proper functioning of the judicial process. This includes attempting to improperly influence, intimidate, or tamper with witnesses in a pending proceeding.
Offering money to witnesses in exchange for changing their testimony constitutes witness tampering, which is a classic form of obstruction of justice. The essence of obstruction is not merely the success of the interference but the corrupt attempt to impede the due administration of justice. The legal system depends on truthful testimony, and any effort to alter or influence witness statements through bribery undermines the integrity of judicial proceedings.
"Conspiracy to influence the court" is not a standard standalone criminal charge in this context, and fraudulent misrepresentation typically relates to deception for financial or property gain, not interference with judicial proceedings. Judicial extortion involves coercion under color of official authority, which does not apply here.
Therefore, Monique's conduct-offering payment to alter testimony-would most likely result in additional charges for obstruction of justice because she is attempting to corruptly interfere with the criminal trial process.
NEW QUESTION # 61
Which of the following statements concerning the appointment of expert witnesses at that is accurate?
- A. Generally, only the parties may select expert witnesses in inquisitional jurisdictions.
- B. Generally the court selects the primary expert witnesses in adversarial jurisdictions.
- C. Generally, only the parties may select experts to introduce testimony in adversarial jurisdictions
- D. Generally, the court appoints the primary expert witnesses in inquisitorial jurisdictions.
Answer: A
NEW QUESTION # 62
Each of the following statements concerning cross-examination of witnesses in adversarial jurisdictions is accurate EXCEPT:
- A. One of the goals of cross-examination is to discredit the witness's testimony.
- B. Opposing counsel will generally cross-examine a witness only if it would help the case.
- C. If opposing counsel asks a very complex question, then the witness should ask for the question to be rephrased.
- D. During cross-examination, opposing counsel is mostly concerned with discovering information that was previously undiscovered in the case.
Answer: D
Explanation:
The correct answer is D because it is the statement that is not accurate. In adversarial jurisdictions, cross- examination is generally not used primarily to discover previously unknown information. Instead, opposing counsel usually cross-examines a witness to diminish the importance of the witness's testimony, obtain admissions that support the opposing side, or attack the witness's report, opinion, or credibility. The Manual makes clear that one of the major goals of cross-examination is to discredit the testimony or the witness.
Option A is accurate because the CFE Manual advises witnesses that if opposing counsel asks an overly complex, long, or imprecise question, the witness should ask for it to be rephrased into smaller components.
Option B is also accurate because discrediting the witness or the witness's opinion is a recognized goal of cross-examination. Option C is accurate as well; the Manual states that opposing counsel's "golden rule" is to cross-examine only if it would benefit the case. Accordingly, D is the exception because cross-examination is a controlled advocacy tool, not mainly a device for open-ended information discovery.
NEW QUESTION # 63
A company files a civil lawsuit against one of its directors for insider trading. At the end of the trial, a court orders the director to refrain from purchasing or obtaining the stock of a particular corporation. Which of the following BEST describes this type of remedy?
- A. Monetary relief
- B. Declaratory relief
- C. Injunction
- D. Punitive damages
Answer: C
Explanation:
This question tests your knowledge of Domain 1.
In the context of Overview of the Legal System, specifically relating to civil, the question asks about BEST.
The correct answer is C: Injunction.
This question relates to the legal system framework. Understanding the distinction between different legal systems and processes is crucial for fraud examiners. The correct answer accurately describes the relationship between different legal entities and their jurisdictions.
References:
- CFE Exam Content Outline: Domain 1: Overview of the Legal System
- civil
- Fraud Examiners Manual, Law Section
NEW QUESTION # 64
The Financial Action Task Force (FATF) Recommendations suggest that countries should do which of the following?
- A. Require financial institutions to monitor their customers' social media activity for signs of money laundering.
- B. Use a risk-based approach when creating and establishing their anti-money laundering policies.
- C. Only conduct business with other countries that comply with the anti-money laundering recommendations.
- D. Impose a sentence of five years of imprisonment for all money laundering and terrorist financing convictions.
Answer: B
Explanation:
This question tests your knowledge of Domain 5.
In the context of Money Laundering, specifically relating to money laundering, anti-money laundering, FATF, the question asks about FATF.
The correct answer is A: Use a risk-based approach when creating and establishing their anti-money laundering policies..
This question addresses money laundering concepts. The correct answer correctly identifies the stage, method, or regulatory framework related to money laundering or anti-money laundering efforts. Understanding these processes is critical for fraud examiners working to detect and prevent financial crimes.
References:
- CFE Exam Content Outline: Domain 5: Money Laundering
- money laundering
- anti-money laundering
- FATF
- Fraud Examiners Manual, Law Section
NEW QUESTION # 65
Country A's government requires financial institutions to report all instances of a customer depositing or withdrawing more than $10,000 in a day. To avoid attention regarding his illicit assets, James deposits $9,000 each day. In which of the following schemes is James engaging?
- A. Reverse deposit scheme
- B. Structuring scheme
- C. Mobile payment scheme
- D. Integration scheme
Answer: B
Explanation:
This question tests your knowledge of Uncategorized.
the question asks about his illicit assets, James deposits $9,000 each day.
The correct answer is D: Structuring scheme.
This question tests your understanding of key fraud examination concepts and legal principles.
References:
- CFE Exam Content Outline: Uncategorized
- Fraud Examiners Manual, Law Section
NEW QUESTION # 66
Allison works for a government contractor She informs the government that her employer has been submitting false claims to the government for payment Later it is discovered that Allison has misappropriated more than $50,000 of her employer's money Alison qualifies as a whistleblower entitled to anti-retaliation protection under the law because of her report to the government Which of the following statements about Allison is CORRECT?
- A. Allison cannot be fired for any reason
- B. Allison cannot be fired for misappropriating funds from her employer
- C. Alison cannot be fired for informing the government of her employee's fraud
- D. None of the above
Answer: C
Explanation:
This question tests your knowledge of Domain 7.
In the context of Individual Rights During Examinations, specifically relating to employee, whistleblower, the question asks about Allison is CORRECT, CORRECT.
The correct answer is C: Alison cannot be fired for informing the government of her employee's fraud.
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.
NEW QUESTION # 67
IBC Manufacturing is a private company in a jurisdiction in which the public has the legal right to be free from unreasonable search and seizure by government authorities. An investigator at IBC searches the desk of Denise an IBC employee and finds illegal narcotics. The investigator seizes the narcotics and turns them over to members of law enforcement. The investigator violated Denises rights by failing to obtain a search warrant before conducting the search
- A. False
- B. True
Answer: B
Explanation:
This question tests your knowledge of Domain 7.
In the context of Individual Rights During Examinations, specifically relating to employee, the question asks about IBC.
The correct answer is A: True.
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.
References:
- CFE Exam Content Outline: Domain 7: Individual Rights During Examinations
- employee
- Fraud Examiners Manual, Law Section
NEW QUESTION # 68
Which of the following statements about the International Organization of Securities Commissions (IOSCO) is TRUE?
- A. IOSCO is responsible for enforcing regulatory standards that govern all international securities markets.
- B. IOSCO is an international industry association that sets global accounting and financial reporting standards.
- C. IOSCO's primary goal is to establish a separate set of securities regulations for securities exchanges in developing nations.
- D. IOSCO is comprised of commissioners and administrators responsible for regulating securities and administering securities laws in their countries.
Answer: D
Explanation:
This question tests your knowledge of Domain 4.
In the context of Securities Fraud, specifically relating to securities, IOSCO, the question asks about the International Organization of Securities Commissions (IOSCO) is TRUE, TRUE, IOSCO.
The correct answer is B: IOSCO is comprised of commissioners and administrators responsible for regulating securities and administering securities laws in their countries..
This question tests knowledge of securities fraud and regulation. The correct answer accurately describes the role of regulatory bodies, securities laws, or fraud schemes in this context. Securities fraud is a specialized area requiring knowledge of specific regulations and oversight mechanisms.
NEW QUESTION # 69
Which of the following is a requirement of the European Union's (EU) General Data Protection Regulation (GDPR)?
- A. An organization must refrain from confirming or denying whether it is in possession of a data subject's personal data even if the data subject requests this information.
- B. An organization must provide a data subject's personal data upon that individual's request for a reasonable fee.
- C. An organization must obtain a data subject's consent before collecting or processing personal data about that individual.
- D. An organization must notify all affected data subjects within six months when a data breach occurs that is likely to result in a high risk to their rights and freedoms.
Answer: C
Explanation:
This question tests your knowledge of Domain 7.
In the context of Individual Rights During Examinations, specifically relating to GDPR, the question asks about EU, GDPR.
The correct answer is A: An organization must obtain a data subject's consent before collecting or processing personal data about that individual..
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.
NEW QUESTION # 70
Robert, a Certified Fraud Examiner (CFE), wants to ensure that the authenticity of the evidence he collected during his investigation is not compromised. His main objective should be to:
- A. Limit access to the evidence to judicial officials prior to trial proceedings.
- B. Prevent all other parties from obtaining physical control of the evidence.
- C. Establish a clear chain of custody to show that the evidence has not been altered.
- D. Only alter or materially change the evidence himself if absolutely necessary.
Answer: C
Explanation:
This question tests your knowledge of Domain 9.
In the context of Civil Actions, specifically relating to trial, the question asks about CFE.
The correct answer is C: Establish a clear chain of custody to show that the evidence has not been altered..
This question focuses on civil action processes. The correct answer accurately describes civil litigation procedures, evidence preservation, or remedies available to fraud victims. Civil recovery is often an important component of fraud resolution.
NEW QUESTION # 71
Jackson believes he has a legal cause of action against Alice, who lives in a foreign country. The fact that Jackson is the plaintiff allows him to bring the lawsuit against Alice in any court in the country where he lives.
- A. False
- B. True
Answer: B
Explanation:
This question tests your knowledge of Uncategorized.
the question asks about the core concepts in this area.
The correct answer is A: True.
This question tests your understanding of key fraud examination concepts and legal principles.
NEW QUESTION # 72
Which of the following schemes involves disguising money from illegal nonbusiness sources by recording more income on a business's books than the business actually generates?
- A. None of re above
- B. Overstate revenues
- C. Trade-based laundering
- D. Structured deposits
Answer: B
Explanation:
This question tests your knowledge of Uncategorized.
the question asks about the core concepts in this area.
The correct answer is A: Overstate revenues.
This question tests your understanding of key fraud examination concepts and legal principles.
References:
- CFE Exam Content Outline: Uncategorized
- Fraud Examiners Manual, Law Section
NEW QUESTION # 73
Jackson believes he has a legal cause of action against Alice, who lives in a foreign country. The fact that Jackson is the plaintiff allows him to bring the lawsuit against Alice in any court in the country where he lives.
- A. False
- B. True
Answer: B
Explanation:
This question tests your knowledge of Uncategorized.
the question asks about the core concepts in this area.
The correct answer is A: True.
This question tests your understanding of key fraud examination concepts and legal principles.
References:
- CFE Exam Content Outline: Uncategorized
- Fraud Examiners Manual, Law Section
NEW QUESTION # 74
Which of the following is required for a contract, transaction, or scheme to qualify as an investment contract?
- A. The investment must be made in cash.
- B. The investment must not have been made with expectations of making a profit.
- C. The investment is in a common enterprise.
- D. The investment activity is managed solely by the efforts of the investor and no others.
Answer: C
Explanation:
This question tests your knowledge of Uncategorized.
the question asks about the core concepts in this area.
The correct answer is C: The investment is in a common enterprise..
This question tests your understanding of key fraud examination concepts and legal principles.
References:
- CFE Exam Content Outline: Uncategorized
- Fraud Examiners Manual, Law Section
NEW QUESTION # 75
Mya has been retained as an expert witness to provide testimony for a trial. Which of the following statements describes the primary purpose of Mya's testimony?
- A. Mya will assist the fact finder by drawing conclusions on the credibility of other witnesses.
- B. Mya will assist the fact finder by providing specialized knowledge on the admissibility of evidence in the case.
- C. Mya will assist the fact finder by drawing conclusions regarding the accused's guilt or innocence.
- D. Mya will assist the fact finder by providing specialized knowledge that will help them understand evidence.
Answer: D
Explanation:
This question tests your knowledge of Domain 11.
In the context of Testifying, specifically relating to expert witness, testimony, the question asks about the core concepts in this area.
The correct answer is D: Mya will assist the fact finder by providing specialized knowledge that will help them understand evidence..
This question relates to expert witness testimony. The correct answer accurately describes the role, qualifications, or techniques for effective expert testimony. Fraud examiners often serve as expert witnesses and must understand these principles. Expert witnesses provide specialized knowledge to help the fact finder understand complex issues. Their testimony must be relevant, reliable, and based on sufficient facts or data.
NEW QUESTION # 76
Which of the following is the most accurate statement about the litigation privilege in common law jurisdictions?
- A. The litigation privilege does not protect documents and materials prepared by third-party agents, such as fraud examiners.
- B. The primary purpose of the litigation privilege is to protect confidential communications between a client and the client ' s legal representative.
- C. The litigation privilege only protects documents and materials prepared in anticipation of litigation.
- D. The litigation privilege only protects documents and materials prepared after litigation commences.
Answer: C
Explanation:
The most accurate answer is A. Under the CFE Law materials, the litigation privilege in common law jurisdictions such as the United Kingdom and Canada is described as roughly comparable to the U.S. attorney work-product doctrine. It protects communications made and documents prepared for the purpose of litigation, and it arises once litigation is reasonably anticipated. That means protection is not limited only to materials created after a lawsuit has formally begun; it can attach earlier, as long as litigation was contemplated when the material was created.
Option B is incorrect because the privilege is not restricted to the period after litigation formally commences.
Option C is incorrect because the Manual states that the privilege may extend to communications and documents created by third-party agents, including consultants or fraud examiners, in preparation for litigation. Option D describes the purpose of attorney-client, legal advice, or solicitor-client privilege, which protects confidential legal communications-not litigation privilege. Therefore, among the choices provided, A is the best and most accurate statement, even though the privilege can also cover certain communications in addition to documents and materials.
NEW QUESTION # 77
In most countries employers must provide notice to their employees before they implement an employee monitoring program
- A. False
- B. True
Answer: B
Explanation:
This question tests your knowledge of Domain 7.
In the context of Individual Rights During Examinations, specifically relating to employee, the question asks about the core concepts in this area.
The correct answer is A: True.
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.
NEW QUESTION # 78
......
ACFE CFE-Law Certification Exam is open to a variety of professionals, including those in law enforcement, accounting, auditing, and other related fields. To be eligible to sit for the exam, individuals must meet certain educational and professional requirements, including a minimum of a bachelor's degree or equivalent, and at least two years of professional experience in a field related to fraud examination. CFE-Law exam consists of four sections, each lasting two hours, and includes multiple-choice questions and case studies. Upon passing the exam, individuals earn the CFE-Law certification, which is valid for two years and requires continuing education to maintain.
ACFE CFE-Law certification process is rigorous and requires a significant amount of preparation and study. Candidates must have a minimum of two years of professional experience in fraud examination, and must pass a comprehensive exam that covers all aspects of the field. CFE-Law exam is administered by the Association of Certified Fraud Examiners (ACFE), and is considered one of the most challenging certifications in the field.
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