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ACFE CFE-Law Exam Questions

ACFE CFE-Law Exam Questions Answers

Certified Fraud Examiner (CFE) - Law

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  Updated August 03,2026
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ACFE CFE-Law Practice Test Questions ( Updated) – Real Exam Questions & Dumps PDF

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ACFE CFE-Law Sample Questions – Free Practice Test & Real Exam Prep

Question #1

In common law jurisdictions, which of the following scenarios would MOST LIKELY result insanctions for an organization for failing to preserve evidence?

  • A. An employee intentionally destroys a relevant document prior to the companyannouncing the possibility of litigation.
  • B. An employee unintentionally alters a digital document that is not directly relevant to anypotential litigation that the company has announced to its staff.
  • C. An employee accidentally deletes a digital document that is relevant to litigation after thecompany announces that such litigation is a possibility.
  • D. An employee abstains from destroying a document relevant to an ongoing proceedingeven though this act violates the company's document retention policy.
Answer: A 
Question #2

In jurisdictions that allow for corporate criminal liability which of the following is typically required for the corporation to be vicariously liable for the acts of one of its employees? 

  • A. Management was directly involved with the offense 
  • B. Management knew of the underlying offense but did not correct it 
  • C. The corporation had previous violations of a similar nature 
  • D. The employee was acting within the scope of their employment 
Answer: D 
Question #3

Under the best practices listed in the Financial Action Task Force (FATF)Recommendations concerning large cash transactions with customers which of thefollowing transactions would require a report to be Wed with the government?

  • A. A domestic credit card purchase of a piece of jewelry above the jurisdiction's designated threshold
  • B. A cash payment to a restaurant supplier for restaurant supplies above the jurisdiction's designated threshold 
  • C. An international purchase of a small boat with a lump-sum cash payment below the jurisdiction's designated threshold 
  • D. A lump-sum cash deposit to a bank above the jurisdiction's designated threshold 
Answer: D 
Question #4

Which of the following statements concerning the selection of expert witnesses during trial is MOST ACCURATE?

  • A. Generally, the court selects the primary expert witnesses in adversarial jurisdictions andthe parties do not participate in the selection.
  • B. Generally, the parties select the expert witnesses in both inquisitorial and adversarial jurisdictions.
  • C. Generally, the court selects the primary expert witnesses in inquisitorial jurisdictions and the parties do not hire them directly.
  • D. Generally, the parties select expert witnesses in inquisitorial jurisdictions but not in adversarial jurisdictions.  
Answer: B 
Question #5

Alicia has been charged with tax evasion. As a defense, Alicia claims that she made anhonest mistake due to the complexity of the tax law and did not intentionally violate thejurisdiction's tax laws. If the court finds that her mistake was made in good faith, then shewill most likely NOT be found to have willfully engaged in fraudulent actions to avoidreporting or paying her taxes.

  • A. True 
  • B. False 
Answer: A 
Question #6

Which of the following typically does NOT need to be present for communications betweenan attorney and the attorney’s client to be protected by a legal professional privilege?

  • A. Communication between a legal advisor and a client 
  • B. Purpose of the communications was to seek or provide legal advice 
  • C. A written contract with the attorney requiring confidentiality 
  • D. Intent to keep the communications confidential 
Answer: C 
Question #7

Management at ABC Org. suspects that Marcia, an employee in charge of negotiatingvendor contracts, has a conflict of interest. For ABC Org.'s conflict-of-interest claim to beactionable, which of the following scenarios must be TRUE?

  • A. The alleged conflict must have resulted in a direct personal benefit for Marcia. 
  • B. Marcia must have failed to disclose that she had a personal or economic interest in amatter that could influence her professional role.
  • C. Marcia must have informed the organization that she had a connection to one or more ofthe vendors with whom she was negotiating.
  • D. The alleged conflict must have resulted in a financial loss for the organization. 
Answer: B 
Question #8

In most countries employers must provide notice to their employees before they implement an employee monitoring program 

  • A. True 
  • B. False 
Answer: A 
Question #9

Frederick has multiple high-volume foreign bank accounts. The country he lives in requireshim to report such accounts annually for tax purposes but he regularly and intentionallyfails to report his accounts in order to reduce the amount of taxes he must pay. Which ofthe following schemes has Frederick MOST LIKELY committed?

  • A. A tax credit evasion scheme 
  • B. A value-added tax evasion scheme 
  • C. An excise tax evasion scheme 
  • D. An income and wealth tax evasion scheme 
Answer: D 
Question #10

The________________requires that an employee act solely in the best interest of theiremployer, free of any serf-dealing, conflicts of interest, or other abuse that results in apersonal advantage

  • A. Duty of care 
  • B. Duty of responsibility 
  • C. Duty of employee trust 
  • D. Duty of loyalty 
Answer: D 
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