Which of the following is a red flag that might be indicative of an entity operating a security business without the proper license or registration?
Correct Answer: B
This question tests your knowledge of Uncategorized. the question asks about the core concepts in this area. The correct answer is B: The entity is known to have a history of regulatory problems.. This question tests your understanding of key fraud examination concepts and legal principles. References: - CFE Exam Content Outline: Uncategorized - Fraud Examiners Manual, Law Section
Question 177
Luisa is charged with violating a criminal law that prohibits making false statements to government agencies. Which of the following is NOT one of the elements the government must prove?
Correct Answer: B
Under the ACFE Fraud Examiners Manual discussion of false statements and false claims involving government agencies, the prosecution must establish specific statutory elements to obtain a conviction. Generally, the government must prove that the defendant knowingly and willfully made or used a false statement or document, that the statement was false, that the defendant knew of its falsity, and that the false statement was material. Materiality means that the statement had the natural tendency or capability of influencing the decision of the governmental agency. Importantly, the government is not required to prove that it actually relied upon the false statement or that it suffered a loss as a result. The offense is complete once a materially false statement is knowingly made within the jurisdiction of a government agency. Actual reliance or damages are not necessary elements. Therefore, while materiality, knowledge of falsity, and the making of the false statement are essential components of the offense, proof that the government relied on the statement is not required. For purposes of CFE examination preparation, it is critical to distinguish between materiality and reliance, as they are not synonymous under federal false statement statutes.
Question 178
A company files a civil lawsuit against one of its directors for insider trading. At the end of the trial, a court orders the director to refrain from purchasing or obtaining the stock of a particular corporation. Which of the following BEST describes this type of remedy?
Correct Answer: C
This question tests your knowledge of Domain 1. In the context of Overview of the Legal System, specifically relating to civil, the question asks about BEST. The correct answer is C: Injunction. This question relates to the legal system framework. Understanding the distinction between different legal systems and processes is crucial for fraud examiners. The correct answer accurately describes the relationship between different legal entities and their jurisdictions. References: - CFE Exam Content Outline: Domain 1: Overview of the Legal System - civil - Fraud Examiners Manual, Law Section
