CFE Certified Fraud Examiner Review
Sessions Law Examination Preparation
Course With Latest Updated Solutions 2024
Paula dis don dthe dboards dof dtwo dcompanies dthat dcompete din dthe dhighway dconstruction
dindustry. dPaula ddoes dnot ddisclose dthis dconflict, dand dshe ddoes dnot dstep ddown dfrom dthe
dboard dof deither dcompany. dIf dPaula's dacts dare ddiscovered dand dshe dis dsued dfor dviolating
dher dfiduciary dduties, dunder dwhat dtheory dis dthe dsuit dMOST dLIKELY dto dbe dfiled?
A. dViolating dthe dduty dof dcare d
B. dViolating dthe dduty dto ddisclose d
C. dViolating dthe dduty dof dfair dcompetition d
D. dViolating dthe dduty dof dloyalty d- dcorrect danswer.D. dViolating dthe dduty dof dloyalty
People din da dposition dof dtrust dor dfiduciary drelationship—such das dofficers, ddirectors, dhigh-
level demployees, dagents, d& dbrokers—owe dcertain dduties dto dtheir demployers, dand dany
daction dthat druns dafoul dof dsuch dfiduciary dduties dconstitutes da dbreach. dThe dprincipal
dfiduciary dduties dare dLOYALTY dand dCARE. dThe dduty dof dloyalty drequires dthat dthe
demployee dact dsolely din dthe dbest dinterest dof dthe demployer dwithout dany dself-dealing,
dconflicts dof dinterest, dor dother dabuses dfor dpersonal dadvantage
In dcivil dlaw dsystems, dthe dstandard dof dproof din dcivil dtrials dand dcriminal dtrials dis dgenerally
dthe dsame.
A. dTrue
B. dFalse d- dcorrect danswer.A. dTrue
Haley, dan dinvestment dprofessional, dwas dresponsible dfor dmanaging dthe dbrokerage
daccount dof dher dclient dTammie. dTammie dhad dlittle dinvestment dexperience dand dtrusted
dHaley dto dcontrol dher daccount. dOver dan deight-month dperiod, dHaley dexecuted dmore dthan
done dhundred dtrades don dTammie's dbehalf dfor dthe dpurpose dof dincreasing dher down
dcommissions. dHaley dexecuted dthe dtrades dwithout dregard dfor dTammie's dinvestment
dgoals. dThis dsecurities dfraud dscheme dis dBEST dknown das:
A. dSelling daway d
B. dChurning d
C. dRunning d
,D. dInsider dtrading d- dcorrect danswer.B. dChurning
CHURNING dIS dthe dexcessive dtrading dof da dcustomer daccount dto dgenerate dcommissions
dwhile ddisregarding dthe dcustomer's dinterests. dChurning doccurs dwhen dan dinvestment
dprofessional dexcessively dtrades dan daccount dfor dthe dpurpose dof dincreasing dtheir
dcommissions, dinstead dof dfurthering dthe dcustomer's dinvestment dgoals
If dan demployee dcommits dinternal dfraud, dthen dTHE dONLY dFEASIBLE dWAY dthe demployer
dcan drecover dthe dlosses dis dto dget dthem dfrom dthe demployee dthrough dagreement dor
dlitigation.
A. dTrue d
B. dFalse d- dcorrect danswer.B. dFalse
Given dthe dprevalence dof dfraud d& dthat dIT'S dDIFFICULT dTO dRECOVER dALL dLOSSES
dFROM dFRAUD, dmany dbiz dhave dFIDELITY dINSURANCE. dFidelity dinsurance dor dcrime
dinsurance dor demployee-dishonesty dinsurance dis doften doverlooked das da dmethod dof
drecovery. dFidelity dinsurance dis da dtype dof dinsurance dunder dwhich dthe dInsured dis dcovered
dagainst dlosses dcaused dby ddishonest dor dfraudulent dacts dby dits demployees
The dmain ddistinction dbetween dmediation dand darbitration dis dthat dwith darbitration, dthe
darbitrator ddecides dwho dwins dthe dcase. dIn dcontrast, din dmediation, dthe dmediator dtries dto
dhelp dthe dparties dreach da dsettlement.
A. dTrue
B. dFalse d- dcorrect danswer.A. dTrue
In da dbustout dscheme, dwhich dof dthe dfollowing dtypes dof dassets ddoes dthe dfraudster
dtypically dpurchase dand dthen dsell dprior dto dclosing dthe dbusiness?
A. dReal destate d
B. dInventory dor dgoods
C. dLegal dor daccounting dservices d
D. dBusiness dinsurance dpolicies d- dcorrect danswer.B. dInventory dor dgoods
BUSTOUT dSCHEME dIS da dplanned d& dfraudulent dbankruptcy. dThe dbasic dapproach dis dfor
dan dapparently dlegitimate dbiz dto dorder dlarge dquantities dof dinventory dor dother dgoods dusing
dcredit, dthen ddispose dof dthose dgoods dthrough dlegitimate dor dillegitimate dchannels.
dBecause dthe dpoint dof dBustout dScheme dis dto dquickly dresell dthe dgoods dfor dcash, dthe
dFraudster dis dlikely dto dpurchase dmore dliquid ditems dlike dinventory dthan dreal destate,
dinsurance dpolicies, dor dservices. dThe dperpetrator dthen dcloses dthe dbiz, dabsconding dwith
dthe dproceeds, d& dleaving dthe dsuppliers dunpaid. dThe dDebtor dmight dthen dgo dinto
dbankruptcy. dOften dby dthis dpoint, dthe dDebtor dhas dalready dmade dfalse daccounting dentries
dor dtaken dother dsteps dto dconceal dthe dassets dor dmake dthe dsales dlook dlegitimate. dOther
dtimes, dthe dDebtor dflee dthe djurisdiction dor ddon't dshow dup dat dthe dproceedings
Which dof dthe dfollowing dstatements dconcerning dexpert dwitnesses din dmost dinquisitorial
djurisdictions dis dFALSE?
,A. dAn dexpert dwho dis dcertified din da dspecific dfield dis dalways dqualified dto dtestify das dan
dexpert dwitness
B. dExperts dare doften dallowed dto dserve das dexpert dwitnesses din dmultiple dcases
C. dExpert dwitnesses dare doften dselected dfrom da dlist dmaintained dby dcourts, dchambers dof
dcommerce, dor dother dorganizations
D. dThe djudge dmakes dthe dfinal ddetermination dof dwhether dan dexpert dis dqualified d- dcorrect
danswer.A. dAn dexpert dwho dis dcertified din da dspecific dfield dis dalways dqualified dto dtestify das
dan dexpert dwitness
The dprimary dexperts din dinquisitorial djurisdictions dis dusually dappointed d& dpresented dby
dthe dJudge drather dthan dthe dparties. dLike din dadversarial djurisdictions, dthe dJudge dmakes
dthe dfinal ddetermination dof dwhether dan dexpert dis dqualified. dHowever, dmost dinquisitorial
djurisdictions dhave dmore dstandardized dqualification drequirements. dMany djurisdictions
dmaintain dlists dof dexperts din dcertain dfields dfrom dwhich dthe dCourt dmay dchoose dfor da
dparticular dcase. dThese dexperts dare dgenerally dqualified dif dthey dmeet dnational dstandards
d(being dcertified din da dspecific dfield); dhowever, dthe dJudge dwill dtake dthe dissues dinvolved din
dthe dcase dinto dconsideration d& dmake dthe dfinal ddecision. dSome djurisdictions dallow djudges
dto dlook doutside dof dthe dlists dfor dexperts. dDue dto dthe dmaintenance dof dexpert dlists d& dthe
drelatively dlow-perceived dbias dof dexperts din dinquisitorial djurisdictions, dit's dacceptable dfor
dexpert dwitnesses dto doffer dtheir dservices din dcourt dmore doften dthan din dadversarial
djurisdictions
The dpresence dof dsecurities dregulation dtends dto dDECREASE dinvestors' dconfidence din
dthe dmarket.
A. dTrue d
B. dFalse d- dcorrect danswer.B. dFalse
Securities dregulation dmust dbalance dthe dlegitimate dneeds dof dbiz dto draise dcapital dagainst
dthe dneed dto dprotect dinvestors. dSecurities dregulation dalso:
· dPromoting dan dactive d& dcompetitive dmarket
· dMaintaining dmarket dconfidence
· dReducing dfinancial dcrime
· dDiscouraging dbehavior dthat dmight dharm dthe dmarket
A dreport dby da dCertified dFraud dExaminer d(CFE) dstates dthat d$11,354.56 dwas dwithdrawn
dwithout dauthorization dfrom dthe dplaintiff's dbusiness daccount don dDecember d3, dand don
dDecember d6 dof dthe dsame dyear, d$11,354.56 dwas ddeposited dinto dan daccount downed dby
dthe ddefendant. dDuring da dcriminal dtrial dfor dtheft dagainst dthe ddefendant, dthe dgovernment
dintroduces dthis dinformation das devidence dof dthe ddefendant's dguilt. dWhat dkind dof
devidence dis dthe dinformation dcontained din dthis dreport?
A. dIndirect devidence
B. dCircumstantial devidence
C. dInferential devidence d
D. dNone dof dthe dabove d- dcorrect danswer.B. dCircumstantial devidence
, There dare d2 dcategories dof dadmissible devidence: dDIRECT dEVIDENCE dand
dCIRCUMSTANTIAL dEVIDENCE. dDIRECT dEVIDENCE dIS devidence dthat dtends dto dprove
dor ddisprove da dfact din dissue ddirectly d(eyewitness dtestimony, dconfession).
dCIRCUMSTANTIAL dEVIDENCE dIS devidence dthat dtends dto dprove dor ddisprove dfacts din
dissue dindirectly dor dby dinference d(dugaan)
The dOrganisation dfor dEconomic dCo-operation dand dDevelopment's d(OECD)
dRecommendation don dCombating dBribery din dInternational dBusiness d(the
dRecommendation) durges dmember dstates dto dcombat dthe dbribery dof dforeign dpublic
dofficials dby dtaking dsteps dto dimprove dcertain dareas dwithin dtheir drespective
dinfrastructures. dWhich dof dthe dfollowing dis dNOT done dof dthose dprimary dareas?
A. dLaws dand dregulations dcovering dthe dhandling dof dsensitive dprotected ddata
B. dTax dsystems dand dregulations d
C. dCriminal, dcivil, dcommercial, dand dadministrative dlaws d
D. dBanking dand daccounting drequirements dand dpractices d- dcorrect danswer.A. dLaws dand
dregulations dcovering dthe dhandling dof dsensitive dprotected ddata
The dRecommendation, dwhich dwas dpublished dby dOECD din d1994, durges dmember dstates
dto ddeter d& dpenalize dthe dbribery dof dForeign dPublic dOfficials dby dtaking d"concrete d&
dmeaningful dsteps" dto dimprove dthe dfollowing dareas dwithin dtheir drespective
dinfrastructures:
· dCriminal, dcivil, dcommercial, d& dadministrative dlaws
· dTax dsystems d& dregulations
· dBanking d& daccounting drequirements d& dpractices
· dLaws d& dregulations drelated dto dpublic dsubsidies, dlicenses, d& dcontract dprocurement
Which dof dthe dfollowing dBEST ddescribes dthe dstandard dof dproof dfor dcivil dtrials din dcivil dlaw
djurisdictions?
A. dThe dinner dconviction dof dthe djudge
B. dMore dlikely dthan dnot d
C. dPreponderance dof dthe devidence d
D. dClear dand dconvincing d- dcorrect danswer.A. dThe dinner dconviction dof dthe djudge
Which dof dthe dfollowing dis da dBASIC dEXCEPTION dfor dthe drequirement dthat da dpolice
dofficer dmust dobtain da dsearch dwarrant dbefore dconducting da dsearch dof da dperson, dlocation,
dor dvehicle dfor devidence dof da dcrime?
A. dSearches dwhere dthere dis d"reasonable dbelief" din dthe dsuspect's dguilt
B. dSearches dwhere dthere dis dcircumstantial dproof dthat dthe dsuspect dis dguilty d
C. dSearches dwhen da dconfession dhas dbeen dmade d
D. dSearches dconducted dpursuant dto da dvalid, dvoluntary dconsent d- dcorrect danswer.D.
dSearches dconducted dpursuant dto da dvalid, dvoluntary dconsent
Even dif da dwarrant dis dtechnically drequired, dthere dare da dnumber dof drecognized dexceptions
dto dthe dwarrant drequirement. d2 dkey dexceptions dare: dCONSENT dSEARCHES d&
dEVIDENCE dIN dPLAIN dVIEW
