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CFE-Law Reliable Practice Questions, CFE-Law Study Material

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ACFE Certified Fraud Examiner Sample Questions (Q96-Q101):

NEW QUESTION # 96
Which of the following statements about the International Organization of Securities Commissions (IOSCO) s TRUE?

A. IOSCO provides a forum for regular cooperation on banking supervisory matters affecting developing nations
B. IOSCO is an oversight body responsible for issuing and enforcing regulations that govern all international securities markets
C. IOSCO is recognized as the international standard-setter for securities markets
D. IOSCO is a self-regulatory organization for companies that have securities traded on international securities markets

Answer: C

NEW QUESTION # 97
XYZ Company sued Faith to recover damages based on a claim of misappropriation of funds. In the same civil proceeding, Faith sued XYZ for false imprisonment that allegedly occurred during an interview. In this situation, the claim by Faith against XYZ Company can BEST be described as a:

A. Cross-claim
B. Counterclaim
C. Parallel proceeding
D. Reverse action

Answer: B

Explanation:
This question tests your knowledge of Domain 1.
In the context of Overview of the Legal System, specifically relating to civil, the question asks about XYZ, BEST.
The correct answer is C: Counterclaim.
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.

NEW QUESTION # 98
During a bankruptcy bustout scheme, or planned bankruptcy, the debtor committing the fraud typically performs which of the following actions?

A. Purchases large quantities of goods on credit
B. Colludes with creditors and the trustee to pay some creditors but not ethers
C. Bribes a trustee to overlook assets in the debtor's possession
D. Conspires with suppliers to produce fraudulent invoices

Answer: A

Explanation:
This question tests your knowledge of Domain 3.
In the context of Bankruptcy Fraud, specifically relating to bankruptcy, trustee, bustout, the question asks about the core concepts in this area.
The correct answer is D: Purchases large quantities of goods on credit.
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.

NEW QUESTION # 99
Regarding the litigation privilege in common law jurisdictions, which of the following is the MOST ACCURATE statement?

A. The litigation privilege does not protect communications made by third-party agents, such as consultants.
B. The litigation privilege prevents disclosure of documents prepared in anticipation of litigation.
C. The litigation privilege prevents disclosure of documents entered as evidence during the course of litigation.
D. The litigation privilege protects all communications related to a case, regardless of when they occurred.

Answer: B

Explanation:
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.

NEW QUESTION # 100
Which of the following is one of the three basic options by which organizations can legitimize cross-border transfers of personal information?

A. Use a third-party transferring service
B. Obtain a warrant granting permission to transfer the data
C. Obtain approval from a Certified Information Privacy Professional (C PP)
D. Establish a contract between the entities exchanging the information

Answer: D

NEW QUESTION # 101
......

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