CFE - Law

CFE - Law practice questions, page 6 of 6, with answer review and explanations.

Question 26

One of the purposes of securities regulation is to maintain market confidence.

  1. True
  2. False

Question 27

Which of the following is a legal element that must be shown to prove a claim for commercial bribery?

  1. The defendant acted negligently.
  2. The principal suffered damages as a result of the bribe.
  3. The defendant gave or received a thing of value.
  4. The defendant failed to exercise due care.

Question 28

Allison works for a government contractor. She informs the government that her employer has been submitting false claims to the government for payment. Later, it is discovered that Allison has misappropriated more than $50,000 of her employer's money. Allison qualifies as a whistleblower entitled to anti-retaliation protection under the law because of her report to the government. Which of the following statements about Allison is CORRECT?

  1. Allison cannot be fired for misappropriating funds from her employer
  2. Allison cannot be fired for any reason
  3. Allison cannot be fired for informing the government of her employer's fraud
  4. None of the above

Question 29

Which of the following statements concerning digital currencies, such as bitcoin, is MOST ACCURATE?

  1. Digital currencies are attractive to money launderers because they are a payment method that provides complete anonymity.
  2. Digital currencies are attractive to money launderers because payments often cross jurisdictional boundaries, making it difficult for authorities to pursue enforcement.
  3. Digital currencies are not typically used to launder money due to strict customer identification or recordkeeping requirements enforced in all jurisdictions.
  4. Digital currencies are subject to all of the same regulations as payments made through traditional financial institutions.

Question 30

Smith, a Certified Fraud Examiner (CFE), works for the ABC Company, a private entity that operates in 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 wrongdoing. Assuming that Green had a reasonable expectation of privacy in the smartphone and Smith conducted the search without a legitimate interest or authority, under which of the following claims would Green MOST LIKELY be able to recover damages against Smith?

  1. Slander
  2. Intrusion into Green's private matters
  3. Conflict of interest
  4. Public disclosure of private facts