CFE-LAW Online Practice Questions and Answers

Bob receives a memorandum from his attorney that is protected by a legal professional privilege. Bob emails the memorandum to a third party who has no need to know the information in the memorandum. Which of the following statements is MOST ACCURATE?

A. Bob might have waived the privilege because he transmitted the protected information to a third party who has no need to know the information.

B. Bob might have waived the privilege because he used email to transmit the protected information.

C. Bob did not waive the privilege because the legal professional privilege belongs to the attorney, not the client.

D. Bob did not waive the privilege because the legal professional privilege cannot be waived by transmitting protected information to a third party.

Which of the following is NOT a legal element that must be shown to prove a claim for fraudulent misrepresentation of material facts?

A. The victim suffered damages as a result of the misrepresentation.

B. The defendant acted negligently.

C. The victim relied on the misrepresentation.

D. The defendant made a false statement (i.e., a misrepresentation of fact).

Davis is an employee at Waccamaw Homeplace, a publicly traded corporation. Davis knows that Waccamaw is about to publicly announce a new joint venture project in China, so he buys shares of Waccamaw stock. Assuming that his conduct was illegal in the jurisdiction in which he works and resides, what type of crime did Davis MOST LIKELY commit?

A. Insider trading

B. Trading on margin

C. Futures fraud

D. Churning

Which of the following statements regarding the qualifications of expert witnesses in most inquisitorial jurisdictions is CORRECT?

A. The qualification of an expert is generally based on standardized requirements.

B. An expert is not qualified to testify unless all parties to the litigation approve.

C. Certification in a specific field is always enough to qualify an expert.

D. Experts are generally prohibited from serving as expert witnesses in multiple cases.

ABC 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 ABC searches the desk of Denise, an ABC employee, and finds illegal narcotics. The investigator seizes the narcotics and turns them over to members of law enforcement. The investigator violated Denise's rights by failing to obtain a search warrant before conducting the search.

A. True

B. False

Which of the following is the MOST ACCURATE statement about the circumstances under which a conflict of interest claim would be actionable against an agent?

A. The agent must have informed the principal of their actions.

B. The agent must have had an undisclosed interest in a matter that could influence their professional role.

C. The agent must have purported to act on behalf of, or as an agent for, an identified principal.

D. The agent must have been authorized by someone with actual authority to carry out the transaction at issue.

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

A. In an arbitration proceeding, the arbitrator acts as a judge or jury by deciding the dispute at issue on its merits.

B. The decisions reached in all arbitrations are always binding.

C. The agreements reached in mediations are generally nonbinding.

D. In a mediation session, the mediator decides who should win the dispute at issue.

During an internal investigation, Todd, a Certified Fraud Examiner (CFE), interviewed Janessa, a fraud suspect. Although Janessa wanted to leave in the middle of the interview, Todd blocked the exit and prevented her from leaving. Janessa subsequently confessed to committing fraud. If, under these facts, Janessa files a lawsuit for false imprisonment against Todd, Todd will likely:

A. Win the case if he did not know the conduct was illegal

B. Win the case because he is protected under the qualified business privilege

C. Lose the case if a trier of fact concludes that he restrained Janessa without consent or legal justification

D. Lose the case because Janessa did not leave the interview

In systems using adversarial processes, an attorney may impeach an opposing party's witness by showing that the witness:

A. Made prior consistent statements

B. Is influenced by bias or self-interest

C. Has a keen ability to observe

D. Testified from personal knowledge

Which of the following is NOT an element generally required to establish a claim alleging the common law civil wrong for intentional infliction of emotional distress?

A. The defendant acted intentionally or recklessly.

B. The victim suffered distress as a result of the defendant's conduct.

C. The victim was an employee of the defendant.

D. The defendant engaged in extreme and outrageous conduct.

Even if a government agent obtains consent to search by force, duress, or bribery, the consent will still constitute a valid waiver of the consenting party's right to be free from searches.

A. True

B. False

Which of the following situations would constitute a violation of the U.S. Foreign Corrupt Practices Act (FCPA)?

A. A private U.S. company pays a $2,000 foreign corporation fee that is required in order to do business within the country.

B. A private U.S. company transfers $100,000 to the sole proprietor of a Brazilian company to influence the award of a commercial imports contract.

C. A private UK company transfers $25,000 to a Chilean public official to influence the award of lucrative overseas contracts.

D. A private U.S. company transfers $45,000 to a foreign official to influence the award of a public construction contract.

If Mary uses legal means to lower her tax bill through legitimate deductions and credits, she is engaging in tax evasion.

A. True

B. False

The same customer comes into a casino each day and deposits a large amount of cash into an account, but, after very little gambling, the customer withdraws the funds. The casino employees suspect that the customer may be engaged in money laundering activity. Assuming that the anti-money laundering (AML) regulations that govern the casino's activities correspond to the Financial Action Task Force (FATF) Recommendations, the casino:

A. May, but is not required to, file a report of suspicious transactions related to possible money laundering with appropriate authorities

B. May not file a report of suspicious transactions related to potential criminal activity with appropriate authorities

C. Is required to file a cash transaction report for possible criminal activity with appropriate authorities because cash was involved

D. Is required to file a report of suspicious transactions with appropriate authorities because the

employees suspect money laundering violations

In a particular country's judicial process, the judge oversees the investigation of a case, is primarily

responsible for questioning witnesses, and generally plays a larger role in the evidence-gathering process

than the parties' legal counsel.

Which of the following best describes this type of judicial process?

A. Substantive law process

B. Common law process

C. Inquisitorial process

D. Adversarial process