CFE-Law Free Practice Test

Jackson believes he has a legal cause of action against Alice, who lives in a foreign country. The fact that Jackson is the plaintiff allows him to bring the lawsuit against Alice in any court in the country where he lives.

1. A. True
2. B. False

Correct Answer: A

One of the purposes of securities regulation is to maintain market confidence.

1. A. True
2. B. False

Correct Answer: A

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?

1. A. A tax credit evasion scheme
2. B. A value-added tax evasion scheme
3. C. An excise tax evasion scheme
4. D. An income and wealth tax evasion scheme

Correct Answer: D

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?

1. A. Burton has a duty to cooperate with the investigation even if what is requested from him is not reasonable
2. B. Burton can refuse to cooperate with the investigation because he has a fundamental right to privacy
3. C. Burton likely has a duty to cooperate with the investigation as part of the employer-employee relationship
4. D. Burton can refuse to cooperate with the investigation because he has a fundamental right to remain silent

Correct Answer: C

Raj is an employee who works 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 is Raj MOST LIKELY to have a reasonable expectation of privacy?

1. A. A backpack brought from home
2. B. A filing cabinet in the office lobby
3. C. A waste bin m the employee's office
4. D. A company-issued tablet computer

Correct Answer: A