Practice Test Geeks(CFS) Certified Fraud Specialist Practice Test
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Legal Aspects & Regulatory Compliance Flashcards

7 cards from real CFS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. Under the Sarbanes-Oxley Act, what is the maximum criminal penalty for knowingly destroying documents to obstruct a federal investigation?

    Answer: 20 years imprisonment

    SOX Section 1102 imposes up to 20 years imprisonment for knowingly destroying or falsifying records to obstruct a federal investigation.

  2. Which legal doctrine allows prosecutors to hold a corporation criminally liable for crimes committed by its employees acting within the scope of their employment?

    Answer: Respondeat superior

    Respondeat superior ('let the master answer') is the doctrine under which corporations face criminal liability for employees' acts within the scope of employment.

  3. Under the Federal Sentencing Guidelines, what term describes a formal program designed to prevent and detect criminal conduct within an organization?

    Answer: Effective compliance and ethics program

    The Federal Sentencing Guidelines use the term 'effective compliance and ethics program' to describe the formal structure organizations must have to earn culpability score reductions.

  4. Which FCPA provision prohibits U.S. companies from bribing foreign government officials to obtain or retain business?

    Answer: Anti-bribery provisions

    The FCPA's anti-bribery provisions explicitly prohibit offering, paying, or authorizing payments to foreign officials to obtain or retain business.

  5. A civil lawsuit filed under the False Claims Act that is initiated by a private citizen on behalf of the government is called a:

    Answer: Qui tam action

    Qui tam actions allow private citizens (relators) to sue on the government's behalf under the False Claims Act and share in any recovery.

  6. Under the Bank Secrecy Act, financial institutions must file a Currency Transaction Report (CTR) for cash transactions exceeding:

    Answer: $10,000

    The BSA requires filing a CTR for any cash transaction exceeding $10,000 in a single business day.

  7. Which element is NOT required to prove mail fraud under 18 U.S.C. § 1341?

    Answer: Actual financial loss by the victim

    Mail fraud does not require proof of actual financial loss — only a scheme to defraud, intent, and use of the mails to execute the scheme.