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| Section | Weight | Objectives |
|---|
| Specialized Fraud Laws | 15-25% | - Money laundering and financial regulations - Securities fraud - Tax fraud - Bankruptcy fraud
|
| Law Related to Fraud | 10-15% | - Conspiracy and obstruction of justice - Mail, wire, and false claims fraud - Fraud and misrepresentation - Corruption and bribery laws
|
| Fraud Investigation Methodology | 20-25% | - Interview and interrogation techniques - Investigation planning and scope - Data analysis and tracing illicit transactions - Evidence collection and preservation - Investigation reporting and documentation
|
| Individual Rights During Examinations | 10-15% | - Whistleblower protections - Rights in public vs private sector - Employee rights and duties
|
| Rules of Evidence and Testimony | 10-15% | - Admissibility of evidence - Expert witness standards and testimony - Hearsay and exceptions
|
| Legal Systems and Procedures | 10-15% | - Civil and criminal litigation
- 1. Civil litigation process
- 2. Criminal prosecution procedures
- Overview of legal systems
- 1. Civil vs. common law
- 2. Adversarial vs. inquisitorial processes
|
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CFE-Fraud-Investigations-and-Legal-Issues practice test questions, answers, explanations
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ACFE Certified Fraud Examiner (CFE) - Fraud Investigations and Legal Issues Sample Questions (Q436-Q441):
NEW QUESTION # 436
Marcus is trying to locate the financial statements of Acme Airlines, a multinational publicly traded corporation. Which of the following sources would be MOST EFFECTIVE for finding this information?
- A. Commercial filings
- B. Regulatory securities records
- C. Organizational filings
- D. Civil litigation records
Answer: B
Explanation:
"Securities regulators... require disclosures that typically include: corporate financial statements, identification of officers and directors, identification of significant owners... and a history of the business"
#10:2014 International Fraud Examiners Manual.pdf L73-L95#.
Thus, regulatory securities records are the best source for financial statements.
NEW QUESTION # 437
Cory has been charged with lax evasion for filing a false tax return. As a defense, Cory claims that he made an honest mistake due to the tax law ' s complexity, and he did not intentionally submit an incorrect tax return If the court finds that his mistake was in good faith the most likely will NOT be found to have " willfully ' " engaged m fraudulent actions to avoid reporting or paying his taxes.
Answer: B
Explanation:
This question tests your knowledge of Uncategorized.
the question asks about willfully ' , NOT.
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 # 438
Which of the following is NOT a best practice for obtaining a signed statement?
- A. Have the suspect write out the entire statement in their own handwriting
- B. Have two individuals witness the signing of the document when possible.
- C. Prepare separate statements for unrelated offenses
- D. Add subsequent facts to the statement as an addendum.
Answer: A
Explanation:
The best practices for signed statements include:
Adding omitted facts as an addendum.
Preparing separate statements for unrelated offenses.
Having witnesses to the signing.
But:
"The signed statement should be reduced to a short and concise written statement. The interviewer should prepare the statement and present it to the confessor for his signature" .
Thus, requiring the suspect to handwrite the entire statement is not a best practice.
NEW QUESTION # 439
Which of the following is the MOST ACCURATE statement about the privacy of information shared through social media?
- A. To access any user-posted information on social media sites, fraud examiners must obtain some type of legal order from the jurisdiction in which the user resides.
- B. The Privacy of Social Networks Treaty is a binding international treaty that makes it illegal for law enforcement to seek social media log-in credentials from users.
- C. Hacking or breaking into information on social media sites that is restricted as private could result in liability for fraud examiners due to violation of users ' privacy rights.
- D. A fraud examiner cannot be held liable for violating a user ' s privacy rights if they hack or break into areas of a social networking site designated as private because all social media information is public.
Answer: C
Explanation:
The Fraud Examiners Manual clearly states:
"Accessing information set to private could result in claims under privacy laws. Thus, information on social media sites that is restricted by privacy settings could result in liability for fraud examiners due to violation of users' privacy rights." Therefore, D is correct
NEW QUESTION # 440
Talia has been hired by SBS Inc. to implement a new data analysis program to search for warning signs of potential fraud within the company. Which of the following steps should Talia conduct first to MOST EFFECTIVELY use data analysis techniques for such an initiative?
- A. Monitor the data.
- B. Cleanse and normalize the data.
- C. Identify the relevant data
- D. Build a profile of potential frauds.
Answer: C
Explanation:
The Fraud Examiners Manual explains:
"Before running tests on the data, the fraud examiner must make certain the data being analysed are relevant and reliable for the objective of the engagement... Using the profile of potential frauds as a guide, the fraud examiner must identify the target data for analysis".
NEW QUESTION # 441
......
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