CFE-Law ACFE Certified Fraud Examiner (CFE) - Law Free Practice Exam Questions (2026 Updated)

This question tests your knowledge of Uncategorized.

the question asks about MOST ACCURATE, judgments involving parties in multiple jurisdictions is MOST ACCURATE.

The correct answer is D: Whether a foreign judgment is enforceable might depend on whether the two jurisdiction have an enforcement treaty.

This question tests your understanding of key fraud examination concepts and legal principles.

This question tests your knowledge of Domain 3.

In the context of Bankruptcy Fraud, specifically relating to bankruptcy, concealment of assets, the question asks about the core concepts in this area.

The correct answer is A: Bankruptcy fraud.

This question focuses on bankruptcy fraud concepts. The correct answer correctly identifies the relevant bankruptcy process, filing type, or fraud scheme. Understanding bankruptcy proceedings and the roles of various parties is essential for fraud examiners investigating these cases.

This question tests your knowledge of Domain 7.

In the context of Individual Rights During Examinations, specifically relating to employee, the question asks about the core concepts in this area.

The correct answer is D: Existence of an employment contract.

This question relates to individual rights during examinations. The correct answer accurately describes the legal protections, obligations, or privacy considerations that apply in workplace investigations. Fraud examiners must balance investigative needs with legal protections for individuals.

According to the ACFE Fraud Examiners Manual, Law Section, specifically under Basic Principles of Evidence and Admissibility of Evidence , relevant evidence is defined as evidence having any tendency to make a fact that is of consequence to the determination of the action more or less probable than it would be without the evidence. This definition focuses on the logical relationship between the evidence and a disputed issue in the case.

Relevance is a foundational requirement for admissibility. If evidence does not bear on a material fact in dispute, it is generally inadmissible because it does not assist the trier of fact in resolving the matter. The threshold for relevance is relatively low; the evidence need only slightly increase or decrease the probability of a consequential fact.

Circumstantial evidence refers to indirect evidence that requires inference to connect it to a conclusion of fact, while testimonial evidence consists of statements made by a witness under oath. Demonstrative evidence includes physical objects, models, or visual aids used to illustrate testimony. Although these are types or forms of evidence, they are not definitions of the concept described in the question.

Therefore, the correct term for evidence that makes a disputed fact more or less likely is relevant evidence.

This question tests your knowledge of Uncategorized.

the question asks about MOST ACCURATE, the circumstances under which a conflict of interest claim would be actionable against an agent.

The correct answer is B: The agent must have had an undisclosed interest m a matter that could influence their professional role.

This question tests your understanding of key fraud examination concepts and legal principles.

This question tests your knowledge of Domain 5.

In the context of Money Laundering, specifically relating to money laundering, the question asks about the core concepts in this area.

The correct answer is A: An importer and an exporter conspire to conceal illicit funds by creating invoices that understate the quantity of goods shipped internationally.

This question addresses money laundering concepts. The correct answer correctly identifies the stage, method, or regulatory framework related to money laundering or anti-money laundering efforts. Understanding these processes is critical for fraud examiners working to detect and prevent financial crimes. Money laundering typically involves three stages: placement (introducing illegal funds into the financial system), layering (creating complex transactions to hide the source), and integration (returning the funds to the launderer in an apparently legitimate form).

This question tests your knowledge of Domain 9.

In the context of Civil Actions, specifically relating to trial, the question asks about CFE.

The correct answer is C: Establish a clear chain of custody to show that the evidence has not been altered..

This question focuses on civil action processes. The correct answer accurately describes civil litigation procedures, evidence preservation, or remedies available to fraud victims. Civil recovery is often an important component of fraud resolution.

This question tests your knowledge of Domain 4.

In the context of Securities Fraud, specifically relating to securities, the question asks about the core concepts in this area.

The correct answer is A: True.

This question tests knowledge of securities fraud and regulation. The correct answer accurately describes the role of regulatory bodies, securities laws, or fraud schemes in this context. Securities fraud is a specialized area requiring knowledge of specific regulations and oversight mechanisms.

This question tests your knowledge of Domain 3.

In the context of Bankruptcy Fraud, specifically relating to bankruptcy, the question asks about BEST.

The correct answer is B: Liquidation bankruptcy.

This question focuses on bankruptcy fraud concepts. The correct answer correctly identifies the relevant bankruptcy process, filing type, or fraud scheme. Understanding bankruptcy proceedings and the roles of various parties is essential for fraud examiners investigating these cases.

This question tests your knowledge of Domain 7.

In the context of Individual Rights During Examinations, specifically relating to employee, the question asks about the core concepts in this area.

The correct answer is A: True.

This question relates to individual rights during examinations. The correct answer accurately describes the legal protections, obligations, or privacy considerations that apply in workplace investigations. Fraud examiners must balance investigative needs with legal protections for individuals.

This question tests your knowledge of Uncategorized.

the question asks about the core concepts in this area.

The correct answer is A: True.

This question tests your understanding of key fraud examination concepts and legal principles.

This question tests your knowledge of Domain 10.

In the context of Basic Principles of Evidence, specifically relating to privilege, the question asks about CFE.

The correct answer is B: Lose the case if a trier of fact concludes that he restrained Janessa without consent or legal justification.

This question tests knowledge of evidence principles. The correct answer correctly distinguishes between types of evidence, admissibility requirements, or evidentiary privileges. Proper handling of evidence is crucial for successful fraud investigations and prosecutions.

This question tests your knowledge of Domain 10.

In the context of Basic Principles of Evidence, specifically relating to privilege, the question asks about MOST ACCURATE.

The correct answer is B: Bob might have waived the privilege because he transmitted the protected information to a third party who has no need to know the information.

This question tests knowledge of evidence principles. The correct answer correctly distinguishes between types of evidence, admissibility requirements, or evidentiary privileges. Proper handling of evidence is crucial for successful fraud investigations and prosecutions.

This question tests your knowledge of Uncategorized.

the question asks about the core concepts in this area.

The correct answer is C: Structuring.

This question tests your understanding of key fraud examination concepts and legal principles.

This question tests your knowledge of Domain 10.

In the context of Basic Principles of Evidence, specifically relating to circumstantial evidence, the question asks about the core concepts in this area.

The correct answer is D: Relevant evidence.

This question tests knowledge of evidence principles. The correct answer correctly distinguishes between types of evidence, admissibility requirements, or evidentiary privileges. Proper handling of evidence is crucial for successful fraud investigations and prosecutions.

This question tests your knowledge of Domain 1.

In the context of Overview of the Legal System, specifically relating to common law, the question asks about MOST ACCURATE, the litigation privilege in common law jurisdictions, which of the following is the MOST ACCURATE statement.

The correct answer is A: The litigation privilege prevents disclosure of documents prepared in anticipation of litigation..

This question relates to the legal system framework. Understanding the distinction between different legal systems and processes is crucial for fraud examiners. The correct answer accurately describes the relationship between different legal entities and their jurisdictions.

According to the ACFE Fraud Examiners Manual, Law Section, specifically under The Civil Justice System and Decisions and Remedies in Civil Cases , civil courts may grant provisional remedies to protect a plaintiff’s interests before a final judgment is entered. One such remedy is prejudgment attachment.

Prejudgment attachment allows a plaintiff to request that the court seize or freeze a defendant’s assets during the pendency of litigation. The purpose is to prevent the defendant from dissipating, transferring, or concealing assets that might otherwise be used to satisfy a future judgment. Courts typically require the plaintiff to demonstrate a likelihood of success on the merits and a risk that the defendant will dispose of the property before judgment. In many jurisdictions, the plaintiff may also be required to post a bond to protect the defendant against wrongful attachment.

A preservation order generally relates to safeguarding evidence, not freezing assets. Declaratory relief seeks a judicial declaration of rights without necessarily awarding damages or freezing property. A litigation hold is an internal directive to preserve documents and is not a court-issued remedy.

Therefore, to prevent Brenda from spending the embezzled funds before judgment, Luke should seek a prejudgment attachment.

This question tests your knowledge of Domain 9.

In the context of Civil Actions, specifically relating to trial, alternative dispute, the question asks about the different types of alternative dispute resolutions is CORRECT, CORRECT.

The correct answer is A: In a mediation session, the mediator tries to help the parties reach a settlement..

This question focuses on civil action processes. The correct answer accurately describes civil litigation procedures, evidence preservation, or remedies available to fraud victims. Civil recovery is often an important component of fraud resolution.

This question tests your knowledge of Domain 5.

In the context of Money Laundering, specifically relating to money laundering, anti-money laundering, FATF, the question asks about FATF, AML.

The correct answer is C: Is required to file a report of suspicious transactions with appropriate authorities because the employees suspect money laundering violations.

This question addresses money laundering concepts. The correct answer correctly identifies the stage, method, or regulatory framework related to money laundering or anti-money laundering efforts. Understanding these processes is critical for fraud examiners working to detect and prevent financial crimes. Money laundering typically involves three stages: placement (introducing illegal funds into the financial system), layering (creating complex transactions to hide the source), and integration (returning the funds to the launderer in an apparently legitimate form).