ACFE CFE-Law Exam (page: 3)
ACFE Certified Fraudiner (CFE) - Law
Updated on: 25-Dec-2025

Viewing Page 3 of 34

Which of the following is NOT the reason why senior management will overstate business statement?

  1. Comply with debit covenants
  2. Meet personal performance criteria
  3. Trigger performance related compensation
  4. Show a pattern of growth to support sale of a business

Answer(s): A



Which of the four basic measures, if properly installed and implemented may help prevent inventory fraud?

  1. Proper documentation, segregation of duties, independent checks and physical safeguards
  2. Proper documentation, segregation of duties, independent checks and inventory control
  3. Proper documentation, physical padding, independent checks and physical safeguards
  4. prenumbered affiliations, segregation of duties, independent checks and physical safeguards

Answer(s): A



The act of an official or fiduciary person who unlawfully and wrongfully uses his station or character to procure some benefit, contrary to duty and rights of others is called:

  1. Conflict of interest
  2. Corruption
  3. Bribery
  4. Overbilling

Answer(s): B



Which of the following are the classifications for the Corruption?

  1. Bribery, economic extortion, illegal gratuities and conflicts of interest
  2. Corruption, bribery, economic extortion, conflicts of interest
  3. Overbilling, bribery, bid-ridding and illegal gratuities
  4. economic extortion, bribery, illegal gratuities and corruption

Answer(s): A



____________ may be defined as the offering, giving, receiving or soliciting anything of value to influence an official act.

  1. Corruption
  2. Diverting business to vendors
  3. Bribery
  4. Lacking approval authority

Answer(s): C



Viewing Page 3 of 34



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