CFE Ethical Obligations & Professional Conduct 5

Question 1

A CFE's former client asks them to testify as a fact witness about a prior engagement. The CFE should:

Accepted Answer

Testify truthfully about facts within their personal knowledge

Answer

As a fact witness, a CFE must testify truthfully about matters within their personal knowledge, though confidentiality issues should be reviewed with counsel.

Question 2

When a CFE identifies a potential conflict of interest mid-engagement, the preferred course of action is to:

Accepted Answer

Disclose the conflict to all affected parties and obtain consent or withdraw

Answer

Mid-engagement conflicts must be disclosed to all affected parties, who then decide whether the CFE should continue or withdraw.

Question 3

A CFE is retained by an insurance company and discovers fraud was committed by the insurance company itself. The CFE's ethical duty is to:

Accepted Answer

Report the findings objectively and consider the appropriate regulatory channels

Answer

A CFE must report findings objectively even when adverse to the retaining party, and must consider whether regulatory reporting obligations apply.

Question 4

The ACFE's ethical standards prohibit a CFE from making which type of statement about their qualifications?

Accepted Answer

Exaggerating or misrepresenting their experience or expertise

Answer

Misrepresenting or exaggerating qualifications and experience is explicitly prohibited by the ACFE Code of Professional Ethics.

Question 5

A CFE is subpoenaed for work product from a completed engagement. The CFE should:

Accepted Answer

Comply after consulting with legal counsel and notifying the client

Answer

When subpoenaed, a CFE should consult legal counsel, notify the client, and produce documents as legally required while preserving any applicable privileges.

(CFE) Certified Forensic Examiner Practice Test

(CFE) Certified Forensic Examiner Practice Test

CFE Ethical Obligations & Professional Conduct 5