CFE-Law Practice Exam Questions and Answers

A.  

True

B.  

False

A.  

A tax credit evasion scheme

B.  

A value-added tax evasion scheme

C.  

An excise tax evasion scheme

D.  

An income and wealth tax evasion scheme

A.  

Bankruptcy fraud

B.  

Fictitious revenues

C.  

Payroll fraud

D.  

Income smoothing

A.  

Right of the accused to be released from custody pending trial

B.  

Right of the accused to a trial without public disclosure of the results

C.  

Right of the accused to unlimited appeals in criminal trials

D.  

Right of the accused to be informed of criminal charges

A.  

The systems are not necessarily illegal.

B.  

Funds are sent and received without the use of traditional financial institutions.

C.  

The systems are characterized by a lack of physical or digital transfer of currency between payers and payees.

D.  

The ledgers used typically contain information regarding payers and payees, such as names and account numbers.

A.  

Digital currencies are subject to all of the same regulations as payments made through traditional financial institutions

B.  

Digital currencies are attractive to money launderers because payments often cross jurisdictional boundaries, making it difficult for authorities to pursue enforcement

C.  

Digital currencies are attractive to money launderers because they are a payment method that provides complete anonymity

D.  

Digital currencies are not typically used to launder money due to strict customer identification or recordkeeping requirements enforced in all jurisdictions

A.  

A laptop computer that was issued by Samson Inc.

B.  

A desk drawer in a communal workspace.

C.  

A recycling bin in the employee's office.

D.  

A personal mobile phone brought to the office from home.

A.  

All of the conspirators knowingly committed an overt act in furtherance of the conspiracy.

B.  

The defendant entered into an agreement to commit an illegal act with at least one other person.

C.  

The conspirators accomplished the purpose of the conspiracy that was initially established.

D.  

The defendant intentionally or unintentionally joined and participated in the illegal scheme.

A.  

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

B.  

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

C.  

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

D.  

All of the above are correct

A.  

An SRO generally has sole regulatory authority over the securities industry in the jurisdiction in which it operates

B.  

In most jurisdictions. SROs are prohibited from participating in the resolution of disputes related to securities transactions

C.  

An SRO is a governmental entity that exercises regulatory authority over the securities industry in its jurisdiction

D.  

In some jurisdictions SROs establish the standards and rules under which members of the securities industry operate