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ACFE Certified Fraud Examiner Sample Questions:

1. Which of the following is NOT a legal element that must be shown to prove a claim for fraudulent misrepresentation of material facts?

A) The victim relied on the misrepresentation
B) The victim suffered damages as a result of the misrepresentation
C) The defendant made a false statement (i, e., a misrepresentation of fact)
D) The defendant acted negligently

2. One of the purposes of securities regulation is to promote an active and competitive market.

A) False
B) True

3. Which of the following is the MOST ACCURATE statement about rules prohibiting securities broker-dealers from making unsuitable recommendations on investments or investment strategies?

A) A suitability violation occurs when a broker recommends an investment or investment strategy that is inconsistent with the client ' s objectives
B) A suitability violation occurs when a broker does not carry out a trade requested by or promised to a customer
C) A suitability violation occurs when a broker enters into transactions and manages a client ' s account for the purpose of generating excessive commissions
D) A suitability violation occurs when a broker trades in a client ' s account without obtaining prior approval for making the transaction(s).

4. Cindi, a U.S. resident, is conducting an advance-fee fraud scheme. As part of the scheme, Cindi uses the U.S.
mail system to send advertisements to potential victims in China. If the U.S. government prosecutes Cindi, which of the following would most likely be the basis for the charges?

A) Wire fraud
B) Interstate fraud
C) Mail fraud
D) Communications fraud

5. Which of the following is NOT an element that is generally required to establish a claim alleging the common law civil wrong for intentional infliction of emotional distress?

A) The defendant acted intentionally or recklessly.
B) The victim ' s distress occurred for at least two years.
C) The defendant engaged in extreme and outrageous conduct.
D) The victim suffered distress due to the defendant ' s conduct.

Solutions: