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ACFE Certified Fraud Examiner Sample Questions:

1. 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 entered as evidence during the course of litigation.
C) The litigation privilege protects all communications related to a case, regardless of when they occurred.
D) The litigation privilege prevents disclosure of documents prepared in anticipation of litigation.

2. 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) Reverse action
C) Parallel proceeding
D) Counterclaim

3. Acme Inc. is the debtor in a bankruptcy case that will enable the organization to continue conducting business after the proceeding. Which of the following is one of the preferred approaches to governance and management of the proceeding under the World Bank Principles for Effective Insolvency and Creditor/Debtor Regimes (World Bank Principles)?

A) Supervision of Acme ' s management is undertaken by the company ' s internal audit function.
B) Exclusive control of the proceeding is entrusted to an independent insolvency representative.
C) Acme ' s management and its creditors oversee governance responsibilities.
D) The creditor with the largest claim against Acme is entrusted as the insolvency supervisor.

4. The concealment of assets occurs most commonly in which of the following types of fraud schemes?

A) Fictitious revenues
B) Payroll fraud
C) Income smoothing
D) Bankruptcy fraud

5. Which of the following is a legal element that must be shown to prove a claim for official bribery?

A) The defendant gave or received something of value.
B) The government suffered damages because of the bribe.
C) The defendant acted negligently.
D) The defendant failed to exercise due care.

Solutions: