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Certified Fraud Examiner (CFE) - Law

Last Update Feb 21, 2026
Total Questions : 171 With Methodical Explanation

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Certified Fraud Examiner (CFE) - Law Questions and Answers

Questions 1

To determine if a misrepresentation in the offer or sale of any securities is material a fraud examiner should answer which of the following questions?

Options:

A.

"Did the person who made the representation believe that it was suitable for potential investors?"

B.

"Was the misrepresentation made by an authorized individual?"

C.

"Would a reasonable investor wish to know the information to make an informed decision?"

D.

''Did the person who made the representation intend to mislead potential investors?

Questions 2

In common law jurisdictions, which of the following scenarios would MOST LIKELY result in sanctions for an organization for failing to preserve evidence?

Options:

A.

An employee intentionally destroys a relevant document prior to the company announcing the possibility of litigation.

B.

An employee unintentionally alters a digital document that is not directly relevant to any potential litigation that the company has announced to its staff.

C.

An employee accidentally deletes a digital document that is relevant to litigation after the company announces that such litigation is a possibility.

D.

An employee abstains from destroying a document relevant to an ongoing proceeding even though this act violates the company's document retention policy.

Questions 3

Which of the following statements concerning judgments involving parties in multiple jurisdictions is MOST ACCURATE?

Options:

A.

Whether a foreign judgment is enforceable always depends on where the defendant's assets are located

B.

If a party obtains a judgment in one jurisdiction, that party will automatically be able to enforce the judgment in any jurisdiction

C.

If a party obtains a judgment in one jurisdiction, that party will automatically be able to enforce the judgment wherever the defendant resides

D.

Whether a foreign judgment is enforceable might depend on whether the two jurisdiction have an enforcement treaty

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