The Fraud-Related Law section of the CFE exam is where many otherwise solid candidates stumble—not because they lack auditing or investigative skill, but because statutes, evidentiary rules, and global insolvency principles feel like a maze of fine print. ACFE’s 2025 blueprint tightened that maze even further: expect more questions on conspiracy elements, whistle-blower deadlines, FCPA ledger violations, and the World Bank’s insolvency standards. If you want to walk into the Prometric centre with complete confidence, you must pressure-test your legal knowledge under realistic, exam-style conditions.

That’s exactly what this practice set delivers. The 20 questions below were written by Cert Fast Pass subject-matter experts immediately after the January 2025 blueprint update. Each item mirrors the ACFE question style—concise stems, plausible distractors, and clear answers with mini-rationales—so you can pinpoint weak spots before they cost you a passing score. Treat this mini-quiz as both a diagnostic tool and a sneak peek of our full 125-question mock, then scroll to the end for details on how Cert Fast Pass can guarantee your first-attempt CFE success.

20 CFE – LAW Quick-Fire Questions—Can You Hit 20/20?

1. Which of the following statements concerning alternative remittance systems is INCORRECT?
A. The ledgers used typically contain information regarding payers and payees, such as names and account numbers.
B. Alternative remittance systems do not require a physical or digital transfer of currency between payers and payees.
C. Funds are sent and received without the use of traditional financial institutions.
D. Alternative remittance systems are not necessarily illegal
Answer: A

2. If a suspect voluntarily consents to a search or seizure by a government agent, then the consent eliminates the need for a search warrant.
A. True
B. False
Answer: A

3. Callie is an employee at Red Incorporated, a private company in a jurisdiction in which the public has the legal right to be free from unreasonable search and seizure by government authorities. Steven, an investigator employed by Red, searches Callie’s office and discovers several personal items that other employees have reported missing. Steven seizes the items and gives them to law enforcement. By falling to obtain a search warrant before conducting his search, Steven has violated Callie’s rights.
A. True
B. False
Answer: B

4. Regarding the litigation privilege in common law jurisdictions, which of the following is the MOST ACCURATE statement?
A. The litigation privilege protects all communications related to a case, regardless of when they occurred.
B. The litigation privilege does not protect communications made by third-party agents, such as consultants.
C. The litigation privilege prevents disclosure of documents entered as evidence during the course of litigation.
D. The litigation privilege prevents disclosure of documents prepared in anticipation of litigation
Answer: D

5. Jacob is conducting a fraud examination in a country where courts are bound by both previous court decisions and statutes passed by legislatures. The country where Jacob is working MOST LIKELY has a judicial system.
A. Civil law
B. Common law
C. Precedential law
D. Constitutional law
Answer: B

6. Stella has been appointed as a bankruptcy administrator. According to the recommendations of the World Bank Principles for Effective Insolvency and Creditor/Debtor Regimes (World Bank Principles), which of the following statements concerning Stella’s role as bankruptcy administrator is MOST ACCURATE?
A. Stella may dispose of a debtor’s property, but another party must collect it.
B. Stella may investigate all contracts the debtor entered into, but she does not have the power to cancel them without the debtor’s permission.
C. Stella may request relevant information from the debtor’s agents or others with knowledge of the debtor’s affairs and can force them to provide it.
D. Stella may not interfere with contracts signed by the debtor
Answer: C

7. Mya has been retained as an expert witness to provide testimony for a trial. Which of the following statements describes the primary purpose of Mya’s testimony?
A. Mya will assist the fact finder by providing specialized knowledge on the admissibility of evidence in the case.
B. Mya will assist the fact finder by providing specialized knowledge that will help them understand evidence.
C. Mya will assist the fact finder by drawing conclusions regarding the accused’s guilt or Innocence.
D. Mya will assist the fact finder by drawing conclusions on the credibility of other witnesses
Answer: B

8. Which of the following is required for a contract, transaction, or scheme to be classified as an investment contract?
A. The investment must not have been made with expectations of making a profit.
B. The investment must have been in the form of a cash transaction.
C. The profits come solely from the efforts of people other than the investor.
D. The profits come solely from the investor’s management of their own funds
Answer: C

9. Aryan acquires illegal profits by engaging in drug trafficking. He deposits these funds in small amounts across several banks where he holds accounts. He then moves the funds between accounts multiple times and in different amounts to disguise his trall. He subsequently uses the funds to purchase a local restaurant. In which of the stages of money laundering did Aryan engage when he purchased the restaurant?
A. Layering
B. Integration
C. Implementation
D. Placement
Answer: B

10. Company Q sued Company Z for breach of contract. In the same civil proceeding, Company Z claimed that it entered into the contract based on false information and sued Company Q for fraudulent misrepresentation. Company Z’s claim against Company Q can BEST be described as a:
A. Counterclaim
B. Claim reversal
C. Concurrent complaint
D. Parallel proceeding
Answer: A

11. Mary has acquired $75,000 in illicit cash proceeds. She resides in a country that requires banks to report cash deposits that exceed $10,000. To avoid alerting the government about her illicit proceeds, Mary gives the cash to ten of her friends and asks them each to purchase a money order for $7,500 that is made payable to Mary’s business. Mary then deposits the money orders into her business account. The scheme in which Mary is engaging can BEST be described as a:
A. Remote deposit capture scheme
B. Trade-based money laundering scheme
C. Structuring scheme
D. Shell company scheme
Answer: C

12. When an individual or business commits a bustout scheme, they often perform which of the following actions?
A. Purchase real estate and quickly resell it at a much higher price.
B. File for bankruptcy several times in different jurisdictions.
C. Use credit to purchase a considerable amount of goods.
D. Obtain a business insurance policy using illicit assets
Answer: C

13. Which of the following is MOST LIKELY to affect the rights that an employee may have during an internal investigation?
A. The amount of evidence that the employer possesses
B. The likelihood that the case will eventually go to trial
C. The length of the employee’s tenure at the organization
D. The existence of a collective bargaining agreement
Answer: D

14. Which of the following scenarios is an example of the criminal sanction known as criminal forfeiture?
A. As part of her sentence for bribery, a defendant is ordered to transfer a vehicle she received as a bribe to the government.
B. As part of his sentence for embezzlement, a defendant is ordered to pay back his employer for the money he stole.
C. As part of his sentence for tax evasion, a defendant is ordered to pay a fine of $10,000 to the government.
D. As part of her sentence for money laundering, a defendant is sentenced to a three- to five-year term of incarceration
Answer: A

15. Which of the following statements about the different types of alternative dispute resolutions is CORRECT?
A. A mediation agreement is typically nonbinding.
B. Arbitration can be either binding or nonbinding.
C. in an arbitration proceeding, the arbitrator works with parties to reach a mutually agreeable settlement.
D. In a mediation session, the mediator acts as a judge or jury by deciding the outcome of the case.
Answer: B

16. In most civil law systems, the burden of proof for the government to convict a defendant in a criminal case is beyond a reasonable doubt.
A. True
B. False
Answer: A

17. Which of the following is a legal element that the government must show to prove a conspiracy claim?
A. All of the conspirators knowingly committed an overt act in furtherance of the conspiracy.
B. The defendant entered into an agreement to commit an illegal act with at least one other person.
C. The defendant intentionally or unintentionally joined and participated in the illegal scheme.
D. The conspirators accomplished the purpose of the conspiracy that was initially established
Answer: B

18. Which of the following statements concerning examinations of expert witnesses in most inquisitorial jurisdictions is accurate?
A. Both the parties and the judge may determine how much consideration should be given to an expert’s testimony.
B. Both the parties and the judge may question an expert’s credibility.
C. Only the judge is allowed to question the expert’s analysis and the methods that they used in their determinations.
D. Only the parties are allowed to make objections regarding an expert’s blases
Answer: B

19. ABC Inc. files for bankruptcy to sell all its assets and repay creditors in a liquidation proceeding. In accordance with the World Bank Principles for Effective Insolvency and Creditor/Debtor Regimes (World Bank Principles), which of the following parties should manage ABC’s estate in the liquidation bankruptcy proceedings?
A. The creditors should manage the estate in the proceedings to protect their interests.
B. ABC should manage the estate in the proceedings under the supervision of its creditors.
C. An Independent insolvency representative should manage the estate in the proceedings.
D. ABC’s Internal audit function should manage the estate in the proceedings
Answer: C

20. Which of the following statements concerning fact finders in criminal trials in common law jurisdictions is MOST ACCURATE?
A. A jury serves as the fact finder in all criminal cases that go to trial.
B. A judge serves as the fact finder in all criminal cases that go to trial.
C. Although a jury typically serves as the fact finder, a judge usually serves as the fact finder in cases that are deemed more serious.
D. Although a jury typically serves as the fact finder, a judge may serve as the fact finder if the defendant waives the right to a trial by jury
Answer: D

(Complimentary)

21. Which of the following is the MOST ACCURATE statement about self-regulatory organizations (SROs) In the securities industry?
A. SROs generally monitor compliance and enforcement of the rules in the market in which they operate.
B. An SRO is a governmental entity that exercises regulatory authority over the securities industry in its jurisdiction.
C. SROs often conduct investigations into securities-related fraud allegations within private companies.
D. A common function of SROs is to impose criminal sanctions against individuals who violate industry rules
Answer: A

Next Steps—Secure a First-Attempt PASS

• 2025-aligned dumps & timed mocks—mirror Prometric’s mixed MCQ/MSQ interface.

• One-to-one mentor coaching from fraud attorneys on evidence, warrants & whistleblower law.

• 24 × 7 WhatsApp war-room for last-minute Rule-of-Evidence questions.

• Pay-Only-After-You-Pass guarantee—tuition due only when ACFE emails “PASS.”

Curious how CFE stacks against CAMS for anti-money-laundering roles? Read CAMS vs. CFE: Which AML Certification Delivers Bigger Compliance ROI?.

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