CFE Trivia 5

Question 1

Which of the following best describes 'money laundering'?

Accepted Answer

The process of making illegally obtained money appear legitimate

Answer

Money laundering is the process of concealing the origins of criminal proceeds so they appear to come from a legitimate source.

Question 2

Under U.S. federal law, what statute most directly criminalizes bank fraud?

Accepted Answer

18 U.S.C. § 1344 (bank fraud)

Answer

18 U.S.C. § 1344 specifically criminalizes schemes to defraud financial institutions or to obtain bank money, funds, or credits by fraud.

Question 3

Which anti-fraud control is considered most effective at reducing fraud losses according to ACFE research?

Accepted Answer

Fraud hotlines

Answer

ACFE research consistently finds that organizations with hotlines detect fraud faster and suffer smaller losses than those without, making hotlines one of the most cost-effective controls.

Question 4

What is the primary distinction between 'fraud' and 'abuse' in the occupational fraud context?

Accepted Answer

Fraud is illegal; abuse may be unethical but not necessarily illegal

Answer

Fraud involves intentional deception for financial gain that violates the law, while abuse refers to behavior that is improper or inconsistent with policy but not necessarily criminal.

Question 5

The Foreign Corrupt Practices Act (FCPA) prohibits which of the following?

Accepted Answer

Bribing foreign government officials to obtain or retain business

Answer

The FCPA makes it illegal for U.S. persons and companies to bribe foreign officials to gain a business advantage, and requires accurate books and records.

Certified Fraud Examiner Exam Practice Test

Certified Fraud Examiner Exam Practice Test

CFE Trivia 5