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CFE-Law Free Practice, Test CFE-Law Price

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ACFE Certified Fraud Examiner Sample Questions (Q160-Q165):

NEW QUESTION # 160
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. Exclusive control of the proceeding is entrusted to an independent insolvency representative.
B. Acme's management and its creditors oversee governance responsibilities.
C. The creditor with the largest claim against Acme is entrusted as the insolvency supervisor.
D. Supervision of Acme's management is undertaken by the company's internal audit function.

Answer: A

Explanation:
This question tests your knowledge of Domain 3.
In the context of Bankruptcy Fraud, specifically relating to bankruptcy, the question asks about the core concepts in this area.
The correct answer is B: Exclusive control of the proceeding is entrusted to an independent insolvency representative..
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.
References:
- CFE Exam Content Outline: Domain 3: Bankruptcy Fraud
- bankruptcy
- Fraud Examiners Manual, Law Section

NEW QUESTION # 161
In jurisdictions that allow criminal bargaining agreements the defendant's counsel generally has the discretion to determine whether a bargaining agreement is available to the defendant.

A. False
B. True

Answer: A

NEW QUESTION # 162
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. An excise tax evasion scheme
B. A tax credit evasion scheme
C. A value-added tax evasion scheme
D. An income and wealth tax evasion scheme

Answer: D

Explanation:
This question tests your knowledge of Domain 6.
In the context of Tax Fraud, specifically relating to tax evasion, wealth tax, the question asks about MOST LIKELY.
The correct answer is D: An income and wealth tax evasion scheme.
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.

NEW QUESTION # 163
Which of the following is TRUE in regard to authenticating evidence in most common law systems?

A. Exhibits that cannot be authenticated will not be admitted regardless of relevance
B. Digital records cannot be authenticated by testimony from a witness with personal knowledge
C. For evidence to be authenticated it must be reviewed and voted on by a jury
D. The purpose of authentication is to ensure that hearsay is not admitted into evidence

Answer: D

NEW QUESTION # 164
Which of the following is NOT a right of the accused under the United Nations' (UN) International Covenant on Civil and Political Rights (ICCPR)?

A. Right to be presumed innocent until proven guilty
B. Right of the accused to be informed of criminal charges
C. Right to a trial by jury
D. Freedom from arbitrary arrests

Answer: C

NEW QUESTION # 165
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