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CFE Certified Fraud Examiner Review Sessions Law Examination Preparation Course With Latest Updated Solutions 2024

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CFE Certified Fraud Examiner Review Sessions Law Examination Preparation Course With Latest Updated Solutions 2024

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CFE Certified Fraud Examiner Review
Sessions Law Examination Preparation
Course With Latest Updated Solutions 2024



Paula dis don dthe dboards dof dtwo dcompanies dthat dcompete din dthe dhighway dconstruction
dindustry. dPaula ddoes dnot ddisclose dthis dconflict, dand dshe ddoes dnot dstep ddown dfrom dthe

dboard dof deither dcompany. dIf dPaula's dacts dare ddiscovered dand dshe dis dsued dfor dviolating

dher dfiduciary dduties, dunder dwhat dtheory dis dthe dsuit dMOST dLIKELY dto dbe dfiled?

A. dViolating dthe dduty dof dcare d
B. dViolating dthe dduty dto ddisclose d
C. dViolating dthe dduty dof dfair dcompetition d
D. dViolating dthe dduty dof dloyalty d- dcorrect danswer.D. dViolating dthe dduty dof dloyalty

People din da dposition dof dtrust dor dfiduciary drelationship—such das dofficers, ddirectors, dhigh-
level demployees, dagents, d& dbrokers—owe dcertain dduties dto dtheir demployers, dand dany
daction dthat druns dafoul dof dsuch dfiduciary dduties dconstitutes da dbreach. dThe dprincipal

dfiduciary dduties dare dLOYALTY dand dCARE. dThe dduty dof dloyalty drequires dthat dthe

demployee dact dsolely din dthe dbest dinterest dof dthe demployer dwithout dany dself-dealing,

dconflicts dof dinterest, dor dother dabuses dfor dpersonal dadvantage




In dcivil dlaw dsystems, dthe dstandard dof dproof din dcivil dtrials dand dcriminal dtrials dis dgenerally
dthe dsame.

A. dTrue
B. dFalse d- dcorrect danswer.A. dTrue

Haley, dan dinvestment dprofessional, dwas dresponsible dfor dmanaging dthe dbrokerage
daccount dof dher dclient dTammie. dTammie dhad dlittle dinvestment dexperience dand dtrusted

dHaley dto dcontrol dher daccount. dOver dan deight-month dperiod, dHaley dexecuted dmore dthan

done dhundred dtrades don dTammie's dbehalf dfor dthe dpurpose dof dincreasing dher down

dcommissions. dHaley dexecuted dthe dtrades dwithout dregard dfor dTammie's dinvestment

dgoals. dThis dsecurities dfraud dscheme dis dBEST dknown das:

A. dSelling daway d
B. dChurning d
C. dRunning d

,D. dInsider dtrading d- dcorrect danswer.B. dChurning

CHURNING dIS dthe dexcessive dtrading dof da dcustomer daccount dto dgenerate dcommissions
dwhile ddisregarding dthe dcustomer's dinterests. dChurning doccurs dwhen dan dinvestment

dprofessional dexcessively dtrades dan daccount dfor dthe dpurpose dof dincreasing dtheir

dcommissions, dinstead dof dfurthering dthe dcustomer's dinvestment dgoals




If dan demployee dcommits dinternal dfraud, dthen dTHE dONLY dFEASIBLE dWAY dthe demployer
dcan drecover dthe dlosses dis dto dget dthem dfrom dthe demployee dthrough dagreement dor

dlitigation.

A. dTrue d
B. dFalse d- dcorrect danswer.B. dFalse

Given dthe dprevalence dof dfraud d& dthat dIT'S dDIFFICULT dTO dRECOVER dALL dLOSSES
dFROM dFRAUD, dmany dbiz dhave dFIDELITY dINSURANCE. dFidelity dinsurance dor dcrime

dinsurance dor demployee-dishonesty dinsurance dis doften doverlooked das da dmethod dof

drecovery. dFidelity dinsurance dis da dtype dof dinsurance dunder dwhich dthe dInsured dis dcovered

dagainst dlosses dcaused dby ddishonest dor dfraudulent dacts dby dits demployees




The dmain ddistinction dbetween dmediation dand darbitration dis dthat dwith darbitration, dthe
darbitrator ddecides dwho dwins dthe dcase. dIn dcontrast, din dmediation, dthe dmediator dtries dto

dhelp dthe dparties dreach da dsettlement.

A. dTrue
B. dFalse d- dcorrect danswer.A. dTrue

In da dbustout dscheme, dwhich dof dthe dfollowing dtypes dof dassets ddoes dthe dfraudster
dtypically dpurchase dand dthen dsell dprior dto dclosing dthe dbusiness?

A. dReal destate d
B. dInventory dor dgoods
C. dLegal dor daccounting dservices d
D. dBusiness dinsurance dpolicies d- dcorrect danswer.B. dInventory dor dgoods

BUSTOUT dSCHEME dIS da dplanned d& dfraudulent dbankruptcy. dThe dbasic dapproach dis dfor
dan dapparently dlegitimate dbiz dto dorder dlarge dquantities dof dinventory dor dother dgoods dusing

dcredit, dthen ddispose dof dthose dgoods dthrough dlegitimate dor dillegitimate dchannels.

dBecause dthe dpoint dof dBustout dScheme dis dto dquickly dresell dthe dgoods dfor dcash, dthe

dFraudster dis dlikely dto dpurchase dmore dliquid ditems dlike dinventory dthan dreal destate,

dinsurance dpolicies, dor dservices. dThe dperpetrator dthen dcloses dthe dbiz, dabsconding dwith

dthe dproceeds, d& dleaving dthe dsuppliers dunpaid. dThe dDebtor dmight dthen dgo dinto

dbankruptcy. dOften dby dthis dpoint, dthe dDebtor dhas dalready dmade dfalse daccounting dentries

dor dtaken dother dsteps dto dconceal dthe dassets dor dmake dthe dsales dlook dlegitimate. dOther

dtimes, dthe dDebtor dflee dthe djurisdiction dor ddon't dshow dup dat dthe dproceedings




Which dof dthe dfollowing dstatements dconcerning dexpert dwitnesses din dmost dinquisitorial
djurisdictions dis dFALSE?

,A. dAn dexpert dwho dis dcertified din da dspecific dfield dis dalways dqualified dto dtestify das dan
dexpert dwitness

B. dExperts dare doften dallowed dto dserve das dexpert dwitnesses din dmultiple dcases
C. dExpert dwitnesses dare doften dselected dfrom da dlist dmaintained dby dcourts, dchambers dof
dcommerce, dor dother dorganizations

D. dThe djudge dmakes dthe dfinal ddetermination dof dwhether dan dexpert dis dqualified d- dcorrect
danswer.A. dAn dexpert dwho dis dcertified din da dspecific dfield dis dalways dqualified dto dtestify das

dan dexpert dwitness




The dprimary dexperts din dinquisitorial djurisdictions dis dusually dappointed d& dpresented dby
dthe dJudge drather dthan dthe dparties. dLike din dadversarial djurisdictions, dthe dJudge dmakes

dthe dfinal ddetermination dof dwhether dan dexpert dis dqualified. dHowever, dmost dinquisitorial

djurisdictions dhave dmore dstandardized dqualification drequirements. dMany djurisdictions

dmaintain dlists dof dexperts din dcertain dfields dfrom dwhich dthe dCourt dmay dchoose dfor da

dparticular dcase. dThese dexperts dare dgenerally dqualified dif dthey dmeet dnational dstandards

d(being dcertified din da dspecific dfield); dhowever, dthe dJudge dwill dtake dthe dissues dinvolved din

dthe dcase dinto dconsideration d& dmake dthe dfinal ddecision. dSome djurisdictions dallow djudges

dto dlook doutside dof dthe dlists dfor dexperts. dDue dto dthe dmaintenance dof dexpert dlists d& dthe

drelatively dlow-perceived dbias dof dexperts din dinquisitorial djurisdictions, dit's dacceptable dfor

dexpert dwitnesses dto doffer dtheir dservices din dcourt dmore doften dthan din dadversarial

djurisdictions




The dpresence dof dsecurities dregulation dtends dto dDECREASE dinvestors' dconfidence din
dthe dmarket.

A. dTrue d
B. dFalse d- dcorrect danswer.B. dFalse

Securities dregulation dmust dbalance dthe dlegitimate dneeds dof dbiz dto draise dcapital dagainst
dthe dneed dto dprotect dinvestors. dSecurities dregulation dalso:

· dPromoting dan dactive d& dcompetitive dmarket
· dMaintaining dmarket dconfidence
· dReducing dfinancial dcrime
· dDiscouraging dbehavior dthat dmight dharm dthe dmarket

A dreport dby da dCertified dFraud dExaminer d(CFE) dstates dthat d$11,354.56 dwas dwithdrawn
dwithout dauthorization dfrom dthe dplaintiff's dbusiness daccount don dDecember d3, dand don

dDecember d6 dof dthe dsame dyear, d$11,354.56 dwas ddeposited dinto dan daccount downed dby

dthe ddefendant. dDuring da dcriminal dtrial dfor dtheft dagainst dthe ddefendant, dthe dgovernment

dintroduces dthis dinformation das devidence dof dthe ddefendant's dguilt. dWhat dkind dof

devidence dis dthe dinformation dcontained din dthis dreport?

A. dIndirect devidence
B. dCircumstantial devidence
C. dInferential devidence d
D. dNone dof dthe dabove d- dcorrect danswer.B. dCircumstantial devidence

, There dare d2 dcategories dof dadmissible devidence: dDIRECT dEVIDENCE dand
dCIRCUMSTANTIAL dEVIDENCE. dDIRECT dEVIDENCE dIS devidence dthat dtends dto dprove

dor ddisprove da dfact din dissue ddirectly d(eyewitness dtestimony, dconfession).

dCIRCUMSTANTIAL dEVIDENCE dIS devidence dthat dtends dto dprove dor ddisprove dfacts din

dissue dindirectly dor dby dinference d(dugaan)




The dOrganisation dfor dEconomic dCo-operation dand dDevelopment's d(OECD)
dRecommendation don dCombating dBribery din dInternational dBusiness d(the

dRecommendation) durges dmember dstates dto dcombat dthe dbribery dof dforeign dpublic

dofficials dby dtaking dsteps dto dimprove dcertain dareas dwithin dtheir drespective

dinfrastructures. dWhich dof dthe dfollowing dis dNOT done dof dthose dprimary dareas?

A. dLaws dand dregulations dcovering dthe dhandling dof dsensitive dprotected ddata
B. dTax dsystems dand dregulations d
C. dCriminal, dcivil, dcommercial, dand dadministrative dlaws d
D. dBanking dand daccounting drequirements dand dpractices d- dcorrect danswer.A. dLaws dand
dregulations dcovering dthe dhandling dof dsensitive dprotected ddata




The dRecommendation, dwhich dwas dpublished dby dOECD din d1994, durges dmember dstates
dto ddeter d& dpenalize dthe dbribery dof dForeign dPublic dOfficials dby dtaking d"concrete d&

dmeaningful dsteps" dto dimprove dthe dfollowing dareas dwithin dtheir drespective

dinfrastructures:

· dCriminal, dcivil, dcommercial, d& dadministrative dlaws
· dTax dsystems d& dregulations
· dBanking d& daccounting drequirements d& dpractices
· dLaws d& dregulations drelated dto dpublic dsubsidies, dlicenses, d& dcontract dprocurement

Which dof dthe dfollowing dBEST ddescribes dthe dstandard dof dproof dfor dcivil dtrials din dcivil dlaw
djurisdictions?

A. dThe dinner dconviction dof dthe djudge
B. dMore dlikely dthan dnot d
C. dPreponderance dof dthe devidence d
D. dClear dand dconvincing d- dcorrect danswer.A. dThe dinner dconviction dof dthe djudge

Which dof dthe dfollowing dis da dBASIC dEXCEPTION dfor dthe drequirement dthat da dpolice
dofficer dmust dobtain da dsearch dwarrant dbefore dconducting da dsearch dof da dperson, dlocation,

dor dvehicle dfor devidence dof da dcrime?

A. dSearches dwhere dthere dis d"reasonable dbelief" din dthe dsuspect's dguilt
B. dSearches dwhere dthere dis dcircumstantial dproof dthat dthe dsuspect dis dguilty d
C. dSearches dwhen da dconfession dhas dbeen dmade d
D. dSearches dconducted dpursuant dto da dvalid, dvoluntary dconsent d- dcorrect danswer.D.
dSearches dconducted dpursuant dto da dvalid, dvoluntary dconsent




Even dif da dwarrant dis dtechnically drequired, dthere dare da dnumber dof drecognized dexceptions
dto dthe dwarrant drequirement. d2 dkey dexceptions dare: dCONSENT dSEARCHES d&

dEVIDENCE dIN dPLAIN dVIEW

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