Free Certified Fraud Examiner (CFE) – Law Exam CFE-Law Exam Practice Test

Tatiana is the chief executive officer (CEO) of Mattress World Warehouse, a retail mattress store that has been struggling financially A week before Mattress World Warehouse files for bankruptcy Tatiana sets ten mattresses to her husband at 80% below market value Which type of fraud scheme has Tatiana MOST LIKELY committed?

• A fraudulent bankruptcy
• A fraudulent conveyance
• A planned bustout
• A concealed transfer

Which of the following statements about the appeals process in cranial cases is MOST ACCURATE?

• In common law jurisdictions, appellate courts are generally not permitted to make their own factual determinations when reviewing a case
• In civil law jurisdictions appellate courts are generally not permitted to make their own legal conclusions when reviewing a case
• Appellate courts will usually hear an appeal even if the petition was not filed in a timely manner
• Appellate courts will usually reverse a conviction even if the trial court's error did not affect the outcome of the case

Which of the following is the MOST ACCURATE statement about the different types of alternative dispute resolution'?

• The agreements reached in mediations are generally nonbinding.
• In a mediation session, the mediator decides who should win the dispute at issue
• The decisions reached in all arbitrations are always binding
• In an arbitration proceeding the arbitrator acts as a judge or jury by deciding the dispute at issue on its merits

Ramona is investigating Eugene for misconduct Ramona and Eugene both work for Elek-Tek, which operates in a jurisdiction with evil laws for defamation, invasion of privacy and conflict of interest During the investigation Ramona obtained ^formation that Eugene is cheating on his spouse Ramona to a large group of Elek-Tek employees that Eugene was committing adultery, which turned out to be true Which cause of action would give Eugene the BEST chance for success m a civil suit against Ramona?

• Conflict of interest
• Defamation
• Public disclosure of private facts
• Slander

The government filed a avil action against a politician for accepting real estate as a bribe. There is a possibility that the politician could transfer the real estate to a third party before the court enters a final judgment Which type of order should the government seek from the court to prevent the politician from transferring the real estate?

• Preservation order
• Declaratory relief
• Prejudgment attachment
• Litigation hold

Under the World Bank Principles for Effective Insolvency and Credit/Debtor Regimes (World Bank Principles), which of the following parties should administer the debtor's estate in liquidation bankruptcy proceedings?

• The jurisdiction's commerce department or equivalent agency
• The creditor with the largest claim against the debtor
• The debtor, supervised by an independent insolvency representative
• An independent insolvency representative

Dodd is a Certified Fraud Examiner (CFE) who works for Weathervane, a private company Dodd suspects that Burton a Weathervane employee has embezzled money from the company Dodd plans to conduct an internal investigation into the missing funds Based on these facts which of the following is the MOST ACCURATE statement?

• Burton has a duty to cooperate with the investigation even if what is requested from him is not reasonable
• Burton can refuse to cooperate with the investigation because he has a fundamental right to privacy
• Burton likely has a duty to cooperate with the investigation as part of the employer-employee relationship
• Burton can refuse to cooperate with the investigation because he has a fundamental right to remain silent

Frederick has multiple high-volume foreign bank accounts. The country he lives in requires him to report such accounts annually for tax purposes but he regularly and intentionally fails to report his accounts in order to reduce the amount of taxes he must pay. Which of the following schemes has Frederick MOST LIKELY committed?

• A tax credit evasion scheme
• A value-added tax evasion scheme
• An excise tax evasion scheme
• An income and wealth tax evasion scheme

The Organisation for Economic Co-operation and Developments (OECD) Recommendation on Combating Bribery m International Business (Recommendation) urges member states to combat the bribery of foreign public officials by taking steps to improve which of the following primary areas within their respective infrastructures?

• Public health and safety regulations
• Laws and regulations related to public subsidies licenses, and contract procurement
• Laws and regulations covering e-commerce
• Consumer data protection laws

Evidence that tends to make some tact at issue more or less likely than it would be without the evidence is called:

• Circumstantial evidence
• Testamentary evidence
• Demonstrative evidence
• Relevant evidence