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ACFE Certified Fraud Examiner (CFE) - Fraud Investigations and Legal Issues Sample Questions:
1. At the end of a civil proceeding, the court finds the defendant, a company, liable and orders it to pay a large sum of money to compensate for the plaintiffs losses. Which of the following BEST describes this type of remedy?
A) Declaratory relief
B) Injunction
C) Carnages
D) Equitable relief
2. Which of the following statements is MOST ACCURATE regarding cross-examination of witnesses in adversarial systems?
A) The general rule is for opposing counsel to cross-examine all witnesses to ensure that important details are not missed by the fact finder
B) If opposing counsel asks an overly complex question during cross-examination, witnesses should ask for the question to be rephrased
C) If an expert witness ' s opinion is at risk of being distorted during cross-examination, the expert should avoid answering the question
D) The primary purpose of cross-examination is for opposing counsel to discover information previously unknown to opposing counsel.
3. Ellis works for a business that filed for bankruptcy. The administrator presiding over the bankruptcy contacts Ellis and requests information regarding his employer ' s financial affairs Assuming the administrator has all of the powers recommended in the World Bank Principles for Effective Insolvency and Creditor/Debtor Regimes (World Bank Principles) which of the following is TRUE?
A) The administrator may not obtain the information unless the business agrees in writing
B) The administrator has no power to obtain the information under any circumstances
C) The administrator may compel Ellis to provide the information despite Ellis ' s relationship to the business
D) The administrator may only seek information regarding the bus ness that filed bankruptcy if Ellis consents to providing it.
4. Which of the following statements concerning judgments involving parties that are in multiple jurisdictions is MOST ACCURATE?
A) Whether a foreign judgment is enforceable always depends on where the defendant ' s assets are located.
B) If a party obtains a judgment in one jurisdiction, then that party will automatically be able to enforce the judgment wherever the defendant resides.
C) If a party obtains a judgment in one jurisdiction, then that party will automatically be able to enforce the judgment in any jurisdiction.
D) Whether a foreign judgment is enforceable might depend on whether the two jurisdictions have an enforcement treaty.
5. During a bankruptcy bustout scheme, or planned bankruptcy, the debtor committing the fraud typically performs which of the following actions?
A) Purchases large quantities of goods on credit
B) Bribes a trustee to overlook assets in the debtor ' s possession
C) Colludes with creditors and the trustee to pay some creditors but not ethers
D) Conspires with suppliers to produce fraudulent invoices
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: B | Question # 3 Answer: C | Question # 4 Answer: D | Question # 5 Answer: A |





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