CERTIFIED FRAUD EXAMINER EXAM REVIEW SOLVED QUESTIONS COMPLETE
ANSWERS GRADED A PLUS
Certified Fraud Examiner Practice Paper 2026/2027
Complete Solutions Questions and Answers Verified
Solutions Latest Update
Question:
Conditions of attorney-client privilege (4 conditions).
Answer:
(1) attorney-client relationship must be established (2) attorney provides legal advice to client (3)
communications are confidential (4) privilege has not been waived
Question:
Peremptory Challenge for Cause.
Answer:
Attorney can dismiss a juror for no reason. Attorney can dismiss a juror for unfit predisposition
Question:
Venire.
Answer:
A defense attorney's power to dismiss an entire jury.
Question:
Duty of Care.
Answer:
Fiduciaries must act prudently.
Question:
,Duty of Loyalty.
Answer:
Fiduciaries must act in their client's interests.
Question:
Deferred Prosecution Agreement.
Answer:
When a prosecutor delays prosecution while the company takes remedial actions.
Question:
In a general trial setting, juries __________ while judges __________.
Answer:
In a general trial, juries find facts while judges apply law, make rulings, and moderate.
Question:
Jurisdiction.
Answer:
The power of a court to hear and decide a case.
Question:
T/F - The UK Bribery Act has broader application than the U.S. Foreign Corrupt Practices Act
(FCPA) because, unlike the FCPA, it makes commercial bribery a crime.
Answer:
True, both acts make bribing government officials illegal, but the UK act also makes bribing the
public sector a crime.
Question:
,Common legal defenses include.
Answer:
. alibi, consent, de minimis infraction (trivial), duress, entrapment, ignorance, MISTAKE, necessity,
protection of property, self-defense, public duty, legal impossibility, and protection of others.
Question:
O'Connor v. Ortega, 480 U.S. 709 (1987) states that.
Answer:
Warrants are not required to search an employee's work space.
Question:
Customer Identification Program (CIP).
Answer:
A program implemented by the U.S. Patriot Act requiring that financial institutions verify the
identities of anyone seeking to open an account.
Question:
T/F - Illegal pyramid schemes and Ponzi schemes can qualify as investment contracts under certain
conditions.
Answer:
True
Question:
Self Regulatory Organizations (SRO) do the following.
Answer:
(1) enforce and create standards (2) regulate markets and members
, Question:
Alternative Remittance Systems / Parallel Banking Systems.
Answer:
A method of transferring funds without the use of either formal institutions or specific information.
Payer > Broker 1 > Broker 2 > Payee.
Question:
Impeachment.
Answer:
Attacking a witness' credibility.
Question:
Frivolous Tax Return.
Answer:
A tax return that is incorrect or does not contain enough information.
Question:
Compliance Verification.
Answer:
Determines if company policies match employee transactions.
Question:
T/F The record of contents CANNOT be obtained for a safe deposit box.
Answer:
True, banks do not have records for safe deposit box contents.
Question:
ANSWERS GRADED A PLUS
Certified Fraud Examiner Practice Paper 2026/2027
Complete Solutions Questions and Answers Verified
Solutions Latest Update
Question:
Conditions of attorney-client privilege (4 conditions).
Answer:
(1) attorney-client relationship must be established (2) attorney provides legal advice to client (3)
communications are confidential (4) privilege has not been waived
Question:
Peremptory Challenge for Cause.
Answer:
Attorney can dismiss a juror for no reason. Attorney can dismiss a juror for unfit predisposition
Question:
Venire.
Answer:
A defense attorney's power to dismiss an entire jury.
Question:
Duty of Care.
Answer:
Fiduciaries must act prudently.
Question:
,Duty of Loyalty.
Answer:
Fiduciaries must act in their client's interests.
Question:
Deferred Prosecution Agreement.
Answer:
When a prosecutor delays prosecution while the company takes remedial actions.
Question:
In a general trial setting, juries __________ while judges __________.
Answer:
In a general trial, juries find facts while judges apply law, make rulings, and moderate.
Question:
Jurisdiction.
Answer:
The power of a court to hear and decide a case.
Question:
T/F - The UK Bribery Act has broader application than the U.S. Foreign Corrupt Practices Act
(FCPA) because, unlike the FCPA, it makes commercial bribery a crime.
Answer:
True, both acts make bribing government officials illegal, but the UK act also makes bribing the
public sector a crime.
Question:
,Common legal defenses include.
Answer:
. alibi, consent, de minimis infraction (trivial), duress, entrapment, ignorance, MISTAKE, necessity,
protection of property, self-defense, public duty, legal impossibility, and protection of others.
Question:
O'Connor v. Ortega, 480 U.S. 709 (1987) states that.
Answer:
Warrants are not required to search an employee's work space.
Question:
Customer Identification Program (CIP).
Answer:
A program implemented by the U.S. Patriot Act requiring that financial institutions verify the
identities of anyone seeking to open an account.
Question:
T/F - Illegal pyramid schemes and Ponzi schemes can qualify as investment contracts under certain
conditions.
Answer:
True
Question:
Self Regulatory Organizations (SRO) do the following.
Answer:
(1) enforce and create standards (2) regulate markets and members
, Question:
Alternative Remittance Systems / Parallel Banking Systems.
Answer:
A method of transferring funds without the use of either formal institutions or specific information.
Payer > Broker 1 > Broker 2 > Payee.
Question:
Impeachment.
Answer:
Attacking a witness' credibility.
Question:
Frivolous Tax Return.
Answer:
A tax return that is incorrect or does not contain enough information.
Question:
Compliance Verification.
Answer:
Determines if company policies match employee transactions.
Question:
T/F The record of contents CANNOT be obtained for a safe deposit box.
Answer:
True, banks do not have records for safe deposit box contents.
Question:
