2026 Valid CFE-Law Real Exam Questions (Updated) 100% Dumps & Practice Exam
[UPDATED 2026] ACFE CFE-Law Questions Prepare with Free Demo of PDF
NEW QUESTION # 94
Robert, a Certified Fraud Examiner (CFE), wants to ensure that the authenticity of the evidence he collected during his investigation is not compromised. His main objective should be to:
- A. Establish a clear chain of custody to show that the evidence has not been altered.
- B. Limit access to the evidence to judicial officials prior to trial proceedings.
- C. Prevent all other parties from obtaining physical control of the evidence.
- D. Only alter or materially change the evidence himself if absolutely necessary.
Answer: A
Explanation:
This question tests your knowledge of Domain 9.
In the context of Civil Actions, specifically relating to trial, the question asks about CFE.
The correct answer is C: Establish a clear chain of custody to show that the evidence has not been altered..
This question focuses on civil action processes. The correct answer accurately describes civil litigation procedures, evidence preservation, or remedies available to fraud victims. Civil recovery is often an important component of fraud resolution.
References:
- CFE Exam Content Outline: Domain 9: Civil Actions
- trial
- Fraud Examiners Manual, Law Section
NEW QUESTION # 95
One of the purposes of securities regulation is to promote an active and competitive market.
- A. False
- B. True
Answer: B
Explanation:
This question tests your knowledge of Domain 4.
In the context of Securities Fraud, specifically relating to securities, the question asks about the core concepts in this area.
The correct answer is A: True.
This question tests knowledge of securities fraud and regulation. The correct answer accurately describes the role of regulatory bodies, securities laws, or fraud schemes in this context. Securities fraud is a specialized area requiring knowledge of specific regulations and oversight mechanisms.
References:
- CFE Exam Content Outline: Domain 4: Securities Fraud
- securities
- Fraud Examiners Manual, Law Section
NEW QUESTION # 96
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?
- A. Litigation hold
- B. Preservation order
- C. Prejudgment attachment
- D. Declaratory relief
Answer: C
Explanation:
This question tests your knowledge of Uncategorized.
the question asks about the core concepts in this area.
The correct answer is C: Prejudgment attachment.
This question tests your understanding of key fraud examination concepts and legal principles.
NEW QUESTION # 97
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
Answer: B
Explanation:
This question tests your knowledge of Domain 6.
In the context of Tax Fraud, specifically relating to tax evasion, the question asks about NOT.
The correct answer is A: True.
This question focuses on tax fraud concepts. The correct answer distinguishes between legal tax avoidance and illegal tax evasion, or identifies specific tax evasion schemes. Tax fraud investigations require specialized knowledge of tax laws and common evasion techniques.
References:
- CFE Exam Content Outline: Domain 6: Tax Fraud
- tax evasion
- Fraud Examiners Manual, Law Section
NEW QUESTION # 98
Samson Inc. operates in a jurisdiction that prohibits unreasonable workplace searches and surveillance in areas or items where employees have a reasonable expectation of privacy. In which of the following areas or items can an employee at Samson Inc. most likely have a reasonable expectation of privacy during a workplace search?
- A. A personal mobile phone brought to the office from home
- B. A laptop computer that was issued by Samson Inc.
- C. A desk drawer in a communal workspace
- D. A recycling bin in the employee's office
Answer: A
Explanation:
The best answer is A. A personal mobile phone brought to the office from home. In the CFE Law materials, workplace privacy analysis turns on whether the employee has a reasonable expectation of privacy in the place or item searched and whether the employer's search is justified, necessary, and proportionate. Personal items that belong to the employee, especially items brought from home and used for private communications or storing personal data, are the strongest candidates for a protected privacy interest.
By contrast, an employer-issued laptop is usually much less private because it is company property and often subject to workplace monitoring policies. A desk drawer in a communal workspace may carry some expectation of privacy in certain situations, but generally less than a personally owned phone, especially if the workspace is shared or subject to employer access. A recycling bin is the weakest option because discarded items usually carry little or no reasonable expectation of privacy. Therefore, among the listed choices, the item an employee is most likely to have a reasonable expectation of privacy in is the personal mobile phone.
This answer is also consistent with the broader CFE principle that privacy protection is strongest where the item is personal, private, and not owned or controlled by the employer.
NEW QUESTION # 99
In jurisdictions that allow for corporate criminal liability which of the following is typically required for the corporation to be vicariously liable for the acts of one of its employees?
- A. The employee was acting within the scope of their employment
- B. The corporation had previous violations of a similar nature
- C. Management knew of the underlying offense but did not correct it
- D. Management was directly involved with the offense
Answer: A
NEW QUESTION # 100
Even if a government agent obtains consent to search by force duress or bribery, the consent will still constitute a valid waiver of the consenting party's right to be free from searches.
- A. true
- B. False
Answer: B
Explanation:
This question tests your knowledge of Domain 2.
In the context of The Law Related to Fraud, specifically relating to bribery, the question asks about the core concepts in this area.
The correct answer is B: False.
This question addresses fraud-related laws. The correct answer identifies the proper legal concept or violation that applies in the described scenario. Fraud examiners must understand these legal principles to properly identify and address fraudulent activities.
NEW QUESTION # 101
Which of the following is NOT a requirement of the European Union's (EU) General Data Protection Regulation (GDPR)?
- A. An organization must have a documented lawful basis for collecting or processing personal data.
- B. An organization must confirm or deny that it possesses a data subject's personal data upon that individual's request
- C. An organization must delete a data subject's personal data automatically when the data are no longer m use.
- D. An organization generally must notify all affected data subjects without undue delay when a high-risk data breach occurs
Answer: A
NEW QUESTION # 102
Which of the following is TRUE in regard to authenticating evidence in most common law systems?
- A. The purpose of authentication is to ensure that hearsay is not admitted into evidence
- B. For evidence to be authenticated it must be reviewed and voted on by a jury
- C. Exhibits that cannot be authenticated will not be admitted regardless of relevance
- D. Digital records cannot be authenticated by testimony from a witness with personal knowledge
Answer: A
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 TRUE.
The correct answer is D: The purpose of authentication is to ensure that hearsay is not admitted into evidence.
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.
References:
- CFE Exam Content Outline: Domain 1: Overview of the Legal System
- common law
- Fraud Examiners Manual, Law Section
NEW QUESTION # 103
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?
- A. Litigation hold
- B. Preservation order
- C. Prejudgment attachment
- D. Declaratory relief
Answer: C
Explanation:
This question tests your knowledge of Uncategorized.
the question asks about the core concepts in this area.
The correct answer is C: Prejudgment attachment.
This question tests your understanding of key fraud examination concepts and legal principles.
References:
- CFE Exam Content Outline: Uncategorized
- Fraud Examiners Manual, Law Section
NEW QUESTION # 104
During an internal investigation Todd a Certified Fraud Examiner (CFE) interviewed Janessa a fraud suspect Although Janessa wanted to leave in the middle of the interview, Todd blocked the exit and prevented her from leaving Janessa subsequently confessed to committing fraud If under these facts Janessa files a lawsuit (or false imprisonment against Todd, Todd will likely
- A. Win the case because he is protected under the qualified business privilege
- B. Lose the case if a trier of fact concludes that he restrained Janessa without consent or legal justification
- C. Win the case if he did not know the conduct was illegal
- D. Lose the case because janessa did not leave the interview
Answer: B
Explanation:
This question tests your knowledge of Domain 10.
In the context of Basic Principles of Evidence, specifically relating to privilege, the question asks about CFE.
The correct answer is B: Lose the case if a trier of fact concludes that he restrained Janessa without consent or legal justification.
This question tests knowledge of evidence principles. The correct answer correctly distinguishes between types of evidence, admissibility requirements, or evidentiary privileges. Proper handling of evidence is crucial for successful fraud investigations and prosecutions.
NEW QUESTION # 105
Which of the following is an example of a trade-based money laundering scheme?
- A. An importer and an exporter conspire to conceal illicit funds by creating invoices that understate the quantity of goods shipped internationally
- B. An accountant overstates a restaurants revenues to hide illegal funds that are secretly laundered through the business
- C. A drug cartel outside of the United States launders illicit funds by hiring runners to deposit small amounts of money in bank accounts throughout the United States
- D. A businessperson deposits illicit funds into the bank account of a company they secretly own which then lends the funds back to them
Answer: A
Explanation:
This question tests your knowledge of Domain 5.
In the context of Money Laundering, specifically relating to money laundering, the question asks about the core concepts in this area.
The correct answer is A: An importer and an exporter conspire to conceal illicit funds by creating invoices that understate the quantity of goods shipped internationally.
This question addresses money laundering concepts. The correct answer correctly identifies the stage, method, or regulatory framework related to money laundering or anti-money laundering efforts. Understanding these processes is critical for fraud examiners working to detect and prevent financial crimes. Money laundering typically involves three stages: placement (introducing illegal funds into the financial system), layering (creating complex transactions to hide the source), and integration (returning the funds to the launderer in an apparently legitimate form).
NEW QUESTION # 106
One of the purposes of securities regulation is to maintain market confidence.
- A. False
- B. True
Answer: B
Explanation:
This question tests your knowledge of Domain 4.
In the context of Securities Fraud, specifically relating to securities, the question asks about the core concepts in this area.
The correct answer is A: True.
This question tests knowledge of securities fraud and regulation. The correct answer accurately describes the role of regulatory bodies, securities laws, or fraud schemes in this context. Securities fraud is a specialized area requiring knowledge of specific regulations and oversight mechanisms.
References:
- CFE Exam Content Outline: Domain 4: Securities Fraud
- securities
- Fraud Examiners Manual, Law Section
NEW QUESTION # 107
Which of the following is the MOST ACCURATE statement about the litigation privilege in common law jurisdictions?
- A. The litigation privilege only protects documents and materials prepared by an attorney
- B. The primary purpose of the litigation privilege is to protect confidential communications between a client and the client's legal representative
- C. The litigation privilege applies only to documents and materials prepared in anticipation of litigation
- D. The litigation privilege applies only while a trial is underway
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.
The correct answer is A: The primary purpose of the litigation privilege is to protect confidential communications between a client and the client's legal representative.
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.
References:
- CFE Exam Content Outline: Domain 1: Overview of the Legal System
- common law
- Fraud Examiners Manual, Law Section
NEW QUESTION # 108
One of the purposes of securities regulation is to promote an active and competitive market.
- A. False
- B. True
Answer: B
Explanation:
This question tests your knowledge of Domain 4.
In the context of Securities Fraud, specifically relating to securities, the question asks about the core concepts in this area.
The correct answer is A: True.
This question tests knowledge of securities fraud and regulation. The correct answer accurately describes the role of regulatory bodies, securities laws, or fraud schemes in this context. Securities fraud is a specialized area requiring knowledge of specific regulations and oversight mechanisms.
NEW QUESTION # 109
Which of the following is NOT an element that must be proven to establish a penury offense?
- A. The defendant made the statement with knowledge of its falsity
- B. The defendant made a false statement white under oath.
- C. The defendant made a false statement that was material
- D. The defendant made a false statement in a court of law.
Answer: D
NEW QUESTION # 110
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To be eligible for the CFE-Law certification exam, candidates need to meet certain requirements. They should have a degree in law or a related field, and should have at least one year of experience in fraud examination. Candidates should also be a member of the ACFE, and should have completed the ACFE's fraud examination training program.
The Certified Fraud Examiner (CFE) credential is a globally recognized certification for professionals who investigate financial fraud. It is awarded by the Association of Certified Fraud Examiners (ACFE), a professional organization dedicated to fighting fraud and white-collar crime worldwide. The ACFE CFE-Law Exam is a specialization within the CFE certification that evaluates a candidate's knowledge of legal concepts and regulations related to fraud investigation.
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