View CFE-Law Exam Questions

Q: 1

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?

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Q: 2

John deliberately understated his income so that he could pay a lesser amount on his tax bill. This is an example of tax avoidance.

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Q: 3

Which of the following is the MOST ACCURATE statement about the litigation privilege in common law jurisdictions?

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Discussion

TaylorM Feb 12, 2026 6:22 pm

C/D? Official study guide and practice exam questions both mention timing, so not totally clear to me which is best.

Arjun Z. Mar 1, 2026 6:03 pm

I get the confusion, but litigation privilege actually covers materials prepped for possible litigation, not just communications. So option A is closest since it's about client-lawyer stuff, though it's super similar to attorney-client privilege. Not totally sure here, but leaning A based on what I've seen.

Reese Feb 26, 2026 12:18 pm

A , but if the material wasn't prepared for litigation, then privilege doesn't necessarily apply. Edge cases flip this sometimes.

Leo S. Feb 15, 2026 4:54 pm

I actually think it’s A. Litigation privilege in common law systems protects confidential communication with legal counsel, not just documents made for trial prep. Could be wrong but that's what I've seen on other official sources.

FriendlyMentor8696 Feb 17, 2026 1:53 pm

Sam Feb 24, 2026 6:44 pm

It’s A, since D is a common trap mixing up work product doctrine specifics. Similar question came up in practice tests.

AlexV Feb 23, 2026 11:50 am

A just the answer.

Ishaan E. Feb 20, 2026 3:35 am

C or D, but I think it's easy to mix up here since C is tempting as a timing trap. Privilege isn't just during trial, so D makes more sense but not 100% sure.

Avery A. Feb 28, 2026 9:25 am

A tbh, but I’m not sure. Sounds like it’s about protecting client-lawyer talk. Can someone confirm if that’s right?

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Q: 4

Which of the following is NOT required for a contract transaction or scheme to be classified as an investment contract?

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Discussion

Zoe Feb 19, 2026 5:28 am

Honestly, these Howey Test questions are super repetitive in every practice-B all the way.

Vikram J. Feb 18, 2026 3:10 pm

Had something like this in a mock, it's B.

CameronU Feb 26, 2026 8:31 am

C or B? But I think B is right since the Howey Test says the profits have to come mainly from others' efforts, not just from your own management. The other options are all required for an investment contract. Not 100% sure but that's how I remember it from the official materials. Agree?

Ravi B. Feb 22, 2026 9:31 am

Option D is pretty tempting since money investment feels obvious, but I think it's actually required for the Howey Test. B is the odd one here-profits coming only from the investor's own management isn't a contract under Howey. Seen similar wording throw people off, agree or am I missing something?

Taylor E. Feb 16, 2026 5:09 pm

I don't think it's D like some have said, pretty sure B is correct. Under the Howey Test, it's profits generated mainly from others' efforts that matter, not from the investor’s own management. Option D is actually a requirement, so picking B makes more sense here. If someone sees it differently let me know.

Drew U. Mar 4, 2026 9:37 pm

B tbh. Similar questions come up in official practice tests and the study guide covers this Howey Test bit pretty well.

Mason Feb 16, 2026 3:48 am

Its B

Cameron Feb 24, 2026 2:56 am

Probably B here. Profits from the investor’s own management don’t fit the usual passive expectation under the Howey Test. Anyone see a legal angle I’m missing?

Zoe Z. Mar 1, 2026 7:12 pm

B since if profits are coming from the investor's own management activity, it doesn’t meet the usual Howey Test criteria.

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Q: 5

Which of the following statements concerning examinations of expert witnesses in most inquisitorial jurisdictions is accurate?

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Discussion

RyanE Feb 14, 2026 4:42 pm

I'm thinking C, since sometimes the parties decide how much weight to give the expert's testimony.

Karan Feb 26, 2026 10:27 am

Jordan Feb 14, 2026 12:07 pm

Option D makes sense, since even in inquisitorial systems the parties can usually ask about the expert’s analysis or methods, just not always cross-examine like in adversarial systems. Not totally sure since procedures differ, but D feels closest.

SteadyAnalyst8363 Feb 13, 2026 10:50 pm

Makes sense, D lines up with what I remember from similar questions.

Anita U. Feb 22, 2026 4:02 pm

D fits better. In most inquisitorial systems, parties get a chance to question the expert’s methods and analysis even if it’s not the same as a full adversarial cross-exam. The judge leads the process but parties aren’t totally shut out. Pretty sure that’s why D is correct here-let me know if there’s a twist I’m missing.

Avery Feb 23, 2026 6:25 am

D , fits most inquisitorial systems since parties can usually challenge the expert's methods.

Luke Mar 3, 2026 2:43 pm

C/D? I remember seeing a similar type of question on another practice set and thought C also made sense since the parties have input on how expert testimony is weighed. But D is popular in these forums. Not 100% sure.

Reese J. Feb 26, 2026 10:14 pm

I think D fits best since in inquisitorial systems, parties usually can challenge an expert’s methods or findings directly. The judge guides the process, but both sides can still scrutinize how the expert reached their conclusions. Pretty sure about this, although details might differ by country.

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Q: 6

Smith, a Certified Fraud Examiner (CFE). works for the ABC Company, a private entity that operates w\ a jurisdiction with civil laws for defamation, invasion of privacy. and conflict of interest Smith seizes and searches the personal smartphone of Green an employee of ABC even though Green was not suspected of any wrongdong Assuming that Green had a reasonable expectation of privacy in the smartphone and Smith conducted the search without a legitmate interest or authority, under which of the following claims would Green MOST LIKELY be able to recover damages against Smith?

Options

Discussion

Karan Feb 25, 2026 10:02 am

Its B, saw similar question in exam reports and the focus was on intrusion not disclosure.

SkepticalNeteng6594 Feb 25, 2026 1:54 am

B or C? I saw a similar question in the official guide, so I'd double check both.

Mia W. Feb 27, 2026 11:04 am

C isn't right since the question doesn't mention Smith actually revealing Green's info to anyone else. B matches because just searching Green's phone without cause is intrusion into privacy. Pretty sure that's what ACFE is looking for, but open if I missed something.

Avery L. Feb 14, 2026 6:38 pm

B or C? Official guide and practice tests both hit intrusion as the likely answer, but wording is tricky. Would review sample questions for privacy law just to double check.

Jason G. Feb 28, 2026 7:34 pm

Honestly, I'd go with C here since Smith accessed Green's private info, and public disclosure of private facts covers exposing someone's data. The question doesn't say Smith showed the info to others, but just accessing it could be enough for a claim under C in some interpretations. Pretty sure B is what ACFE wants, but C is tempting if you miss that "disclosure" piece.

Alex L. Feb 22, 2026 8:01 pm

Guessing C here since public disclosure of private facts can sometimes apply when someone's personal info is accessed, even if not widely shared. Not totally sure though, maybe I'm missing a legal detail.

RobinK Mar 3, 2026 6:51 pm

B or C? These ACFE questions can be so picky about wording. Smith just searched, nothing got disclosed, so I'm thinking probably B (intrusion) fits best. Open to hearing why someone might see C as right though.

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Q: 7

Which of the following statements concerning the appointment of expert witnesses at that is accurate?

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Discussion

QuietOps3760 Feb 23, 2026 11:29 pm

Option A

Rowan N. Feb 21, 2026 4:47 pm

Not seeing it for C, option A is more accurate here. In inquisitorial jurisdictions, the court is generally the one appointing key expert witnesses, not the parties. It's easy to mix up with adversarial systems where parties select their own experts-classic trap on these questions. Pretty confident that's what they're going for.

Maya K. Feb 13, 2026 9:57 pm

Pretty sure it should be C, because adversarial systems sometimes have situations where the court actually selects experts if needed. If the question is about regular practice though, could be off.

Nina Mar 3, 2026 7:16 pm

Its A here. In inquisitorial systems, the court usually takes charge of appointing the expert witnesses, not the parties themselves. That’s a key difference from adversarial systems where each side brings their own experts. Pretty sure that’s what they’re testing on this one, but let me know if I’m missing something.

Ajay T. Feb 19, 2026 3:11 pm

Is it always true that in inquisitorial systems, only the court can pick the expert? I thought sometimes the parties could bring their own as well. Not clear if the question means only one approach or both are possible.

Olivia M. Feb 27, 2026 1:33 pm

Riley Q. Feb 25, 2026 12:58 pm

I don’t think it’s A, more likely D since that fits adversarial systems.

Logan Q. Feb 20, 2026 8:25 pm

I don’t think it’s D, A fits better. In inquisitorial jurisdictions, the court usually picks the main experts, while D mixes up adversarial systems where parties pick their own. Seen similar questions before, pretty sure on this one. Disagree?

Vikram Q. Feb 21, 2026 3:43 am

Actually, it's A. In inquisitorial jurisdictions the court tends to appoint the main experts, not the parties. D is more for adversarial systems, easy to mix those two up.

Sara E. Feb 12, 2026 2:48 pm

A is the right pick here.

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Q: 8

A business files for bankruptcy with the goal of obtaining relief from creditors so that it can rearrange its financial affairs and continue as a going concern. Which of the following describes this type of bankruptcy proceeding?

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Q: 9

Which of the following is a red flag that an entity is operating a security business without the proper license or registration?

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Q: 10

The________________requires that an employee act solely in the best interest of their employer, free of any serf-dealing, conflicts of interest, or other abuse that results in a personal advantage

Options

Discussion

Adam D. Feb 18, 2026 12:17 pm

D tbh, employee trust sounds close but that's not a defined legal duty. Main trap here!

Alex Feb 24, 2026 3:12 am

D , "duty of employee trust" looks like the trap. Seen similar on other practice sets.

ThoughtfulNeteng3878 Feb 13, 2026 2:33 pm

Its D here. That matches the definition straight from the legal side, I think.

Robin Feb 13, 2026 9:45 pm

C or D? I saw a similar question in a practice test, picked C but not totally sure. Both seem close.

Aisha C. Feb 21, 2026 3:21 am

C/D? C sounds tempting but isn't a recognized duty in law, pretty sure D is right because "duty of loyalty" is what covers acting solely in the employer's interest. Anyone disagree or see this phrased differently on other tests?

Neha I. Feb 24, 2026 8:36 pm

D imo, that's the legal term tied to avoiding conflicts of interest for employees. Nothing else fits as precisely here.

Vikram Feb 16, 2026 9:31 pm

C/D? If this was about general employee conduct, C might work, but in the legal context for avoiding personal benefit it's D. Still, if the exam used a weird definition for "employee trust" that matches some policy or jurisdiction I'd double check. Pretty sure it's D unless there's a curveball.

Luke Feb 23, 2026 9:14 am

Is there any situation where "duty of employee trust" is a formal legal term? I mostly see "duty of loyalty" in exam prep books for this context, but open to hearing if anyone's seen it used differently.

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