PDF (New 2026) Actual ACFE CFE-Law Exam Questions [Q45-Q67]

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PDF (New 2026) Actual ACFE CFE-Law Exam Questions

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The CFE-Law exam covers a wide range of topics related to fraud investigation and financial crime. CFE-Law exam consists of four sections, including Fraud Prevention and Deterrence, Financial Transactions and Fraud Schemes, Investigation and Law, and Fraud Examination. CFE-Law exam is computer-based and consists of multiple-choice questions. To earn the CFE-Law certification, candidates must have a bachelor’s degree and two years of experience in fraud examination or a related field. Certified Fraud Examiner certification is valid for two years and requires ongoing education and professional development.

NO.45 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 laptop computer that was issued by Samson Inc.

A desk drawer in a communal workspace.

A recycling bin in the employee’s office.

A personal mobile phone brought to the office from home.

This question tests your knowledge of Domain 7.
In the context of Individual Rights During Examinations, specifically relating to employee, privacy, surveillance, workplace, the question asks about MOST LIKELY.
The correct answer is D: A personal mobile phone brought to the office from home..
This question relates to individual rights during examinations. The correct answer accurately describes the legal protections, obligations, or privacy considerations that apply in workplace investigations. Fraud examiners must balance investigative needs with legal protections for individuals.
References:
– CFE Exam Content Outline: Domain 7: Individual Rights During Examinations
– employee
– privacy
– surveillance
– workplace
– Fraud Examiners Manual, Law Section

NO.46 Company A sued Company B to recover damages tor the breach of a contract. In the same proceeding Company B sought damages for an allegation that Company A fraudulently induced Company B into entering the contract In this case what would Company B’s claim against Company A be called?

Cross-claim

Collateral attack

Reversal

Counterclaim

This question tests your knowledge of Uncategorized.
the question asks about the core concepts in this area.
The correct answer is D: Counterclaim.
This question tests your understanding of key fraud examination concepts and legal principles.
References:
– CFE Exam Content Outline: Uncategorized
– Fraud Examiners Manual, Law Section

NO.47 Which of the following is the MOST ACCURATE statement about the litigation privilege in common law jurisdictions?

The primary purpose of the litigation privilege is to protect confidential communications between a client and the client’s legal representative

The litigation privilege only protects documents and materials prepared by an attorney

The litigation privilege applies only while a trial is underway

The litigation privilege applies only to documents and materials prepared in anticipation of litigation

NO.48 Which of the following statements concerning fact finders in criminal trials in common law jurisdictions is MOST ACCURATE?

The presence of a jury is always required to make factual findings in a common law criminal trial

A panel of a professional judge and lay judges usually serves as the fact finder in serious cases

A judge is typically responsible for factual findings

Juries usually serve as the fact finder in serious cases

This question tests your knowledge of Domain 1.
In the context of Overview of the Legal System, specifically relating to criminal, common law, the question asks about MOST ACCURATE, fact finders in criminal trials in common law jurisdictions is MOST ACCURATE.
The correct answer is C: A judge is typically responsible for factual findings.
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.

NO.49 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?

Slander

Intrusion into Green’s private matters

Public disclosure of private facts

Conflict of interest

This question tests your knowledge of Domain 7.
In the context of Individual Rights During Examinations, specifically relating to employee, privacy, the question asks about CFE, MOST LIKELY, ABC.
The correct answer is B: Intrusion into Green’s private matters.
This question relates to individual rights during examinations. The correct answer accurately describes the legal protections, obligations, or privacy considerations that apply in workplace investigations. Fraud examiners must balance investigative needs with legal protections for individuals.

NO.50 Which of the following is a legal element that must be shown to prove a claim for official bribery?

The government suffered damages because of the bribe.

The defendant acted negligently.

The defendant failed to exercise due care.

The defendant gave or received something of value.

The correct answer is D. Official bribery concerns the corruption of a public official in connection with an official act of government. A core element is that the defendant gave, offered, solicited, or received something of value in exchange for influencing official action. ACFE materials describe official bribery as the corruption of a public official to influence an official act, and federal bribery law likewise centers on a thing of value being corruptly given or received in connection with official action.
Option A is incorrect because proof that the government suffered measurable damages is not generally required to establish the offense. The wrong lies in corruptly influencing official action, not in proving a completed financial loss. Option B is incorrect because bribery is not a negligence-based offense; it requires corrupt intent, not mere carelessness. Option C is also incorrect because failure to exercise due care is associated with negligence concepts, not bribery. The defining feature of bribery is the corrupt exchange itself. Therefore, among the choices, the legal element that must be shown is that the defendant gave or received something of value, making D the most accurate answer.

NO.51 Which of the following is the MOST ACCURATE statement about the different types of alternative dispute resolution’?

The agreements reached in mediations are generally nonbinding.

In a mediation session, the mediator decides who should win the dispute at issue

The decisions reached in all arbitrations are always binding

In an arbitration proceeding the arbitrator acts as a judge or jury by deciding the dispute at issue on its merits

NO.52 Grant, a fraud examiner is investigating Beatrice for embezzlement on his employer’s behalf. During his investigation. Grant learns that Beatrice has cheated on her spouse and he tells several of Beatrice’s coworkers about it Beatrice discovers that Grant revealed the unflattering (albeit true) information about her and decides to file a claim of defamation against Grant. Which of the following is the BEST explanation of why Beatrice will not win her defamation case?

The information was true

The communications to the subject’s coworkers were privileged

The news was not communicated to enough people

The statement was not printed and distributed

This question tests your knowledge of Domain 10.
In the context of Basic Principles of Evidence, specifically relating to privilege, the question asks about it Beatrice discovers that Grant revealed the unflattering (albeit true) information about her and decides to file a claim of defamation against Grant, BEST.
The correct answer is A: The information was true.
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.
References:
– CFE Exam Content Outline: Domain 10: Basic Principles of Evidence
– privilege
– Fraud Examiners Manual, Law Section

NO.53 Which of the following statements concerning the appointment of expert witnesses at that is accurate?

Generally, the court appoints the primary expert witnesses in inquisitorial jurisdictions.

Generally, only the parties may select expert witnesses in inquisitional jurisdictions.

Generally the court selects the primary expert witnesses in adversarial jurisdictions.

Generally, only the parties may select experts to introduce testimony in adversarial jurisdictions

This question tests your knowledge of Domain 1.
In the context of Overview of the Legal System, specifically relating to adversarial, inquisitorial, the question asks about the appointment of expert witnesses at that is accurate.
The answer is not provided in the original document. Based on analysis of the question and options:
A: Generally, the court appoints the primary expert witnesses in inquisitorial jurisdictions. B: Generally, only the parties may select expert witnesses in inquisitional jurisdictions. C: Generally the court selects the primary expert witnesses in adversarial jurisdictions. D: Generally, only the parties may select experts to introduce testimony in adversarial jurisdictions Based on CFE Law principles, the most likely correct answer would be A.
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. Expert witnesses provide specialized knowledge to help the fact finder understand complex issues. Their testimony must be relevant, reliable, and based on sufficient facts or data. In inquisitorial jurisdictions, the court typically appoints expert witnesses who are considered neutral and objective, while in adversarial systems, the parties generally select their own expert witnesses to support their respective positions.

NO.54 Which of the following is an example of a trade-based money laundering scheme?

An importer and an exporter conspire to conceal illicit funds by creating invoices that understate the quantity of goods shipped internationally

An accountant overstates a restaurants revenues to hide illegal funds that are secretly laundered through the business

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

A businessperson deposits illicit funds into the bank account of a company they secretly own which then lends the funds back to them

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).
References:
– CFE Exam Content Outline: Domain 5: Money Laundering
– money laundering
– Fraud Examiners Manual, Law Section

NO.55 In most civil law systems, the burden of proof for the government to convict a defendant in a criminal case is beyond a reasonable doubt.

True

False

NO.56 Which of the following examples of judicial systems would BEST be described as a civil law system?

The courts are allowed to consider both codified statutes and previous court decisions but are bound by neither

The courts are bound by both previous court decisions and codified principles or statutes

The courts are bound primarily by previous court decisions to reserve legal issues

The courts are bound by codified principles or statures but are not bound by previous court decisions

This question tests your knowledge of Domain 1.
In the context of Overview of the Legal System, specifically relating to civil, the question asks about BEST.
The correct answer is D: The courts are bound by codified principles or statures but are not bound by previous court decisions.
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
– civil
– Fraud Examiners Manual, Law Section

NO.57 Regarding the litigation privilege in common law jurisdictions, which of the following is the MOST ACCURATE statement?

The litigation privilege prevents disclosure of documents prepared in anticipation of litigation.

The litigation privilege does not protect communications made by third-party agents, such as consultants.

The litigation privilege prevents disclosure of documents entered as evidence during the course of litigation.

The litigation privilege protects all communications related to a case, regardless of when they occurred.

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, which of the following is the MOST ACCURATE statement.
The correct answer is A: The litigation privilege prevents disclosure of documents prepared in anticipation of litigation..
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

NO.58 Under the Financial Action Task Force (FATF) Recommendations, a financial institution’s customer due diligence (CDD) procedures involve a single check on the customer’s business relationships and transactions.

True

False

This question tests your knowledge of Domain 5.
In the context of Money Laundering, specifically relating to FATF, the question asks about CDD, FATF.
The correct answer is B: False.
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.
References:
– CFE Exam Content Outline: Domain 5: Money Laundering
– FATF
– Fraud Examiners Manual, Law Section

NO.59 All of the following are methods of pretrial civil discovery commonly found in common law jurisdictions EXCEPT:

Affidavits of documents or records

Written examinations

Injunctions

Oral examinations

This question tests your knowledge of Domain 1.
In the context of Overview of the Legal System, specifically relating to civil, common law, the question asks about EXCEPT.
The correct answer is C: Injunctions.
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
– civil
– common law
– Fraud Examiners Manual, Law Section

NO.60 Ethan a U S resident, is running a Ponzi scheme As part of the scheme, he uses the U S mail system to send promotional materials to potential victims in France If the US government decides to prosecute Ethan, which of the following would provide the MOST LIKELY basis for the charges?

Mail fraud

Wire fraud

Insider trading fraud

Communications fraud

This question tests your knowledge of Domain 2.
In the context of The Law Related to Fraud, specifically relating to mail fraud, wire fraud, the question asks about US, MOST LIKELY.
The correct answer is A: Mail fraud.
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.

NO.61 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?

Slander

Intrusion into Green’s private matters

Public disclosure of private facts

Conflict of interest

NO.62 Consents to searches by government agents that are obtained by force, duress, or bribery are NOT effective under the law and do NOT eliminate the need for a search warrant.

True

False

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 NOT.
The correct answer is A: True.
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.

NO.63 Which of the following is a requirement of the European Union’s (EU) General Data Protection Regulation (GDPR)?

An organization must obtain a data subject’s consent before collecting or processing personal data about that individual.

An organization must refrain from confirming or denying whether it is in possession of a data subject’s personal data even if the data subject requests this information.

An organization must provide a data subject’s personal data upon that individual’s request for a reasonable fee.

An organization must notify all affected data subjects within six months when a data breach occurs that is likely to result in a high risk to their rights and freedoms.

This question tests your knowledge of Domain 7.
In the context of Individual Rights During Examinations, specifically relating to GDPR, the question asks about EU, GDPR.
The correct answer is A: An organization must obtain a data subject’s consent before collecting or processing personal data about that individual..
This question relates to individual rights during examinations. The correct answer accurately describes the legal protections, obligations, or privacy considerations that apply in workplace investigations. Fraud examiners must balance investigative needs with legal protections for individuals.

NO.64 Which of the following statements concerning front businesses as a method of laundering money is the LEAST ACCURATE?

A red flag of a front business is the observation of a large number of customers during peak operating hours

Front businesses provide cover for delivery and transportation related to illegal activity

From criminals’ perspective a disadvantage to front businesses is that they generally must pay taxes on the illicit income

Front businesses benefit launderers by providing a safe place to manage criminal activities

This question tests your knowledge of Domain 1.
In the context of Overview of the Legal System, specifically relating to criminal, the question asks about LEAST ACCURATE, front businesses as a method of laundering money is the LEAST ACCURATE.
The correct answer is A: A red flag of a front business is the observation of a large number of customers during peak operating hours.
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
– criminal
– Fraud Examiners Manual, Law Section

NO.65 Which of the following statements regarding civil lawsuits in most jurisdictions is CORRECT?

The plaintiffs initial filing does not typically need to contain a summary of the evidence

Civil lawsuits begin with the filing of a pleading, usually in the jurisdiction in which the defendant resides or where the claim arose

The plaintiff’s initial filing with the court does not typically need to include the specific facts on which the claim relies.

All of the above are correct

This question tests your knowledge of Domain 1.
In the context of Overview of the Legal System, specifically relating to civil, the question asks about civil lawsuits in most jurisdictions is CORRECT, CORRECT.
The correct answer is B: Civil lawsuits begin with the filing of a pleading, usually in the jurisdiction in which the defendant resides or where the claim arose.
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
– civil
– Fraud Examiners Manual, Law Section

NO.66 Which of the following statements about the appeals process in cranial cases is MOST ACCURATE?

In common law jurisdictions, appellate courts are generally not permitted to make their own factual determinations when reviewing a case

In civil law jurisdictions appellate courts are generally not permitted to make their own legal conclusions when reviewing a case

Appellate courts will usually hear an appeal even if the petition was not filed in a timely manner

Appellate courts will usually reverse a conviction even if the trial court’s error did not affect the outcome of the case

NO.67 Which of the following choices is a method of pretrial civil discovery that is often found in common law jurisdictions?

Injunctions

Production writs

Indictments

Affidavits of documents

This question tests your knowledge of Domain 1.
In the context of Overview of the Legal System, specifically relating to civil, common law, the question asks about the core concepts in this area.
The correct answer is D: Affidavits of documents.
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.

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ACFE CFE-Law certification exam is a rigorous and challenging exam that requires a high level of preparation and dedication. To become certified, candidates must pass the exam and meet other requirements, such as having a minimum of two years of relevant experience in fraud examination or other related fields. Certified Fraud Examiner certification process also includes ongoing education and professional development requirements to ensure that CFE-Law professionals stay up-to-date with the latest trends and best practices in the industry.

Updated Aug-2026 Pass CFE-Law Exam – Real Practice Test Questions: https://www.examboosts.com/ACFE/CFE-Law-practice-exam-dumps.html