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

1. Alicia has been charged with tax evasion. As a defense, Alicia claims that she made an honest mistake due to the complexity of the tax law and did not intentionally violate the jurisdiction ' s tax laws. If the court finds that her mistake was made in good faith, then she will most likely NOT be found to have willfully engaged in fraudulent actions to avoid reporting or paying her taxes.

A) False
B) True

2. An attorney is advising her corporate client about a contemplated lawsuit against former employees. The attorney hires a forensic accountant to assist her and the client. To facilitate the forensic accountant's assistance, the attorney emails them a copy of a memorandum protected by a legal professional privilege.
Which of the following statements is MOST ACCURATE?

A) The attorney waived the privilege because she transmitted the protected information to a third party.
B) The attorney did not waive the privilege because the attorney hired the forensic accountant to work on the case.
C) The attorney waived the privilege because she sent the protected information to a third party before the lawsuit was filed.
D) The attorney did not waive the privilege because the legal professional privilege cannot be waived by an attorney.

3. Calvin, an attorney, sends a letter that is protected by a legal professional privilege to Katrina, one of his clients. Upon receiving the letter, Katrina emails it to her coworker who has no need to know the information contained in the letter. Which of the following statements is MOST ACCURATE?

A) The privilege was not waived because the legal professional privilege cannot be waived by transmitting protected information to a third party.
B) The privilege might have been waived because Katrina used email to transmit the protected information.
C) The privilege was not waived by Katrina because the legal professional privilege belongs to the attorney, not the client.
D) The privilege might have been waived because Katrina transmitted the protected information to a third party who has no need to know the information.

4. Which of the following statements about a digital forensic examiner seizing a personal computer for forensic examination is MOST ACCURATE?

A) When seizing a computer that is running, the computer should be turned off using normal shutdown procedures to preserve evidence.
B) When seizing a computer that is not running, it should be turned on and data should be accessed remotely to avoid damaging evidence.
C) When seizing a computer that is running, it might be appropriate to perform live evidence collection if the data is volatile.
D) When seizing a computer that is not running, it should be turned on normally to begin live evidence collection of available data.

5. Which of the following legal elements must be shown to prove a claim for fraudulent misrepresentation of material facts?

A) The defendant benefited from the misrepresentation.
B) The defendant acted with gross negligence.
C) The defendant had a duty to provide factual information.
D) The defendant knew the representation was false.

Solutions: