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

1. Nobles, a digital forensic examiner for a government agency, is conducting a criminal investigation of Lucas, a construction company executive, for alleged bribery of foreign officials Nobles obtains a court order authorizing him to seize Lucas ' s personal computer for forensic examination. Which of the following is the MOST ACCURATE statement?

A) If Lucas ' s computer is off. Nobles should not turn it on unless he plans to use an encryption device that can guarantee that the system ' s hard drive will not be accessed during startup.
B) If Lucas ' s computer is running. Nobles should perform a graceful shutdown by turning it off using the normal shutdown process
C) If Lucas ' s computer is off and Nobles needs evidence that exists only in the form of volatile data, he should turn the computer on and retrieve data directly via the computer ' s normal interlace.
D) If Lucas ' s computer is running. Nobles may retrieve data from the computer directly via its normal interface 4 the evidence that he needs exists only in the form of volatile data

2. 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 did not waive the privilege because the legal professional privilege cannot be waived by transmitting protected information to a third party
C) Bob might have waived the privilege because he used email to transmit the protected information.
D) Bob did not walve the privilege because the legal professional privilege belongs to the attorney, not the client

3. Shannon, a Certified Fraud Examiner (CFE), is conducting a fraud examination for Sand Corp. Shannon is going to perform a textual analysis on unstructured data, such as emails and instant messages. Why would Shannon perform such an analysis?

A) The analysis will produce a visual representation of the data collected to track the movement of money.
B) The analysis will categorize data to reveal patterns, sentiments, and relationships that are indicative of fraud.
C) The analysis will determine whether someone is lying or telling the truth based on clues within the data.
D) The analysis will uncover an admission of fraud in an email or other communication that can be presented in court.

4. Which of the following is a common method that fraudsters use to hide their ill-gotten gains?

A) Transferring assets into foreign trusts
B) Purchasing a used vehicle
C) Placing assets in probate
D) Creating a will to allocate assets at death

5. Which of the following is NOT true with regard to tracing the disposition of loan proceeds?

A) Tracing loan proceeds can determine if hidden accounts were used for loan payments.
B) Tracing loan proceeds can reveal previous civil offenses committed by the subject
C) Tracing loan proceeds can determine if the proceeds were deposited into hidden accounts
D) Tracing loan proceeds can uncover previously unknown witnesses

Solutions: