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ACFE Certified Fraud Examiner (CFE) - Fraud Investigations and Legal Issues Sample Questions:

1. Calvin, an attorney, sends a letter that is protected by a legal professional privilege to Katrina, one of his clients. Upon receiving the letter, Katrina emails it to her coworker who has no need to know the information contained in the letter. Which of the following statements is MOST ACCURATE?

A) The privilege was not waived because the legal professional privilege cannot be waived by transmitting protected information to a third party.
B) The privilege might have been waived because Katrina used email to transmit the protected information.
C) The privilege was not waived by Katrina because the legal professional privilege belongs to the attorney, not the client.
D) The privilege might have been waived because Katrina transmitted the protected information to a third party who has no need to know the information.

2. Which of the following statements is MOST ACCURATE regarding covert operations?

A) Fraud examiners should conduct coven operations only after attempting conventional methods of evidence-gathering
B) Covert operations rarely prove beneficial to investigations even when planned properly.
C) Mistakes in covert operations generally do not cause damage to their associated investigations
D) Most jurisdictions provide protections for investigators conducting covert operations that shield them from reputational, financial, and legal consequences.

3. Beta, a Certified Fraud Examiner (CFE). is conducting an admission-seeking interview of Gamma, a fraud suspect. After Beta gave Gamma an appropriate rationalization for his conduct, Gamma continued his denials, giving various alibis. These alibis can usually be diffused by all of the following techniques EXCEPT:

A) Discussing Gamma ' s prior deceptions
B) Displaying physical evidence
C) Discussing the testimony of witnesses
D) Downplaying the strength of the evidence

4. Which of the following, if available, would help an organization recover losses from an instance of internal fraud?

A) Fidelity insurance
B) Customer liability policy
C) Privilege insurance
D) Deposition

5. Which of the following is the MOST APPROPRIATE measure when seeking to avoid alerting suspected perpetrators who are under investigation?

A) Disclose the investigation to all employees
B) Investigate during nonbusiness hours.
C) Terminate the suspected employee.
D) Delay taking any action.

Solutions: