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

1. Which of the following statements regarding the data analytics approach known as predictive analytics is MOST ACCURATE?

A) Predictive analytics involves configuring a program that imitates and integrates the actions of a human to execute certain business processes, which increases efficiency and automates repetitive manual tasks.
B) Predictive analytics involves the use of historical data, analyses, statistics, and machine learning components to build a model that depicts important trends and creates a quantitative projection about future outcomes.
C) In predictive analytics, layered artificial neural networks are used to accommodate more data and more sophisticated algorithms to identify complex patterns.
D) In predictive analytics, computer systems are used to perform human tasks, such as visual perception and decision-making.

2. Abigail, a fraud examiner at a private company, is investigating a coworker named Coraline who is suspected of committing an electronic payment tampering scheme. During the investigation, Abigail finds credible evidence that Coraline is having an affair with a married coworker and tells several colleagues. Coraline discovers that Abigail has revealed this true, but very unflattering, information about her and decides to file a claim of defamation against Abigail. Which of the following explanations BEST describes why Coraline will not win her defamation case?

A) Abigail communicated information that turned out to be true.
B) Abigail did not communicate the information to anyone outside the company.
C) Abigail informed her colleagues while Coraline was being actively investigated.
D) Abigail shared the information on a privileged occasion.

3. Steve, a Certified Fraud Examiner (CFE). was interviewing Michelle, a fraud suspect. Dunng the first part of the interview. Michelle was attentive. However, when he asked her more direct questions about the fraud, she suddenly seemed unconcerned, alternately chewing on her pen cap and picking at a loose piece of fabric on the arm of her chair. From this conduct. Steve is likely to conclude that Michelle

A) Does not know the answers to Steve ' s questions
B) Is being deceptive
C) Is telling the truth
D) Is feeling bored by the interview process

4. Which of the following can affect the rights that employees may have during an internal investigation?

A) Existence of violation red flags
B) Existence of an employment contract
C) Existence of fraud risk factors
D) Existence of interstate compacts

5. 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) Civil litigation records
B) Regulatory securities records
C) Organizational filings
D) Commercial filings

Solutions: