ACFE CFE-Law Actual Tests : Certified Fraud Examiner

Which of the following is an example of a trade-based money laundering scheme?

• A. 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
• B. An accountant overstates a restaurants revenues to hide illegal funds that are secretly laundered through the business
• C. An importer and an exporter conspire to conceal illicit funds by creating invoices that understate the quantity of goods shipped internationally
• D. A businessperson deposits illicit funds into the bank account of a company they secretly own which then lends the funds back to them

In systems using adversarial processes, an attorney may impeach an opposing party ' s witness by showing that the witness:

• A. Has a reputation for being truthful
• B. Testified from personal knowledge
• C. Possesses a strong ability to observe
• D. Made prior inconsistent statements

Kamala is conducting a fraud examination in a country where courts apply laws from codified statutes to each case. When deciding legal issues, the courts are not bound by similar court decisions from previous cases. The country where Kamala is working MOST LIKELY has a __________ judicial system.

• A. Statutory law
• B. Common law
• C. Civil law
• D. Substantive law

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.

• A. False
• B. True

Alicia has been charged with tax evasion. As a defense, Alicia claims that she made an honest mistake due to the complexity of the tax law and did not intentionally violate the jurisdiction ' s tax laws. If the court finds that her mistake was made in good faith, then she will most likely NOT be found to have willfully engaged in fraudulent actions to avoid reporting or paying her taxes.

• A. False
• B. True