ACFE CFE - Law (Certified Fraud Examiner - Law) Practice Test 47

Question 460

A company learns of suspected wrongdoing and immediately destroys potentially relevant personnel records under normal policy. Which duty needs priority?

  1. Whistleblower award eligibility
  2. Anticipated-proceeding preservation
  3. Need-to-know access control
  4. Predication before intrusive examination

Explanation

Correct Answer

B:

Once litigation or enforcement is reasonably foreseeable, relevant records may require preservation regardless of ordinary deletion schedules.

Incorrect Answers

A:

Award eligibility may affect a source’s separate rights or incentives, but it does not determine whether the employer must suspend routine deletion once preservation of relevant employment records is required.

C:

Restricting investigation material to authorized decision-makers reduces confidentiality breaches, witness interference and contamination of accounts; the inquiry instead concerns Anticipated-proceeding preservation, with its own elements.

D:

A fraud examination should have an adequate, articulable basis; speculative suspicion alone is poor justification for costly or intrusive steps; the relevant step in this scenario is Anticipated-proceeding preservation.

Question 461

An employee is accused of fraud and the company intends to dismiss without checking contractual notice periods. Which risk arises?

  1. Public-policy wrongful discharge
  2. Defamatory employment reference
  3. Employment-contract notice duty
  4. Retaliation claim timeliness

Explanation

Correct Answer

C:

Disciplinary action must take account of enforceable contract terms and statutory employment procedures, not just internal suspicion.

Incorrect Answers

A:

Some jurisdictions recognize claims when an employment termination violates a clear public policy, but coverage and exceptions vary; those prerequisites should not be confused with Employment-contract notice duty.

B:

Unverified harmful factual assertions made to third parties can produce defamation or privacy claims, subject to applicable qualified privileges; employment-contract notice duty addresses the distinct legal requirement stated in the facts.

D:

Administrative exhaustion and strict filing limits can affect employment retaliation remedies even if the underlying facts warrant investigation; employment-contract notice duty raises a different threshold from this alternative.

Question 462

A fraud inquiry manager shares a confidential allegation with a prospective employer as if guilt were judicially established. Which tort or privacy risk arises?

  1. Public-policy wrongful discharge
  2. Retaliation claim timeliness
  3. Limits on blanket consent
  4. Defamatory employment reference
  5. Employment-contract notice duty

Explanation

Correct Answer

D:

Unverified harmful factual assertions made to third parties can produce defamation or privacy claims, subject to applicable qualified privileges.

Incorrect Answers

A:

Some jurisdictions recognize claims when an employment termination violates a clear public policy, but coverage and exceptions vary; the circumstances point to Defamatory employment reference rather than that separate test.

B:

Administrative exhaustion and strict filing limits can affect employment retaliation remedies even if the underlying facts warrant investigation; defamatory employment reference is the issue raised by the described conduct.

C:

Some privacy protections are mandatory and consent may need to be specific, freely given and informed; a broad waiver may be ineffective; the inquiry instead concerns Defamatory employment reference, with its own elements.

E:

Disciplinary action must take account of enforceable contract terms and statutory employment procedures, not just internal suspicion; the relevant step in this scenario is Defamatory employment reference.

Question 463

An employer punishes a worker for refusing to perform an act they reasonably believe is illegal. Which protection could be considered?

  1. Retaliation claim timeliness
  2. Employment-contract notice duty
  3. Defamatory employment reference
  4. Limits on blanket consent
  5. Public-policy wrongful discharge

Explanation

Correct Answer

E:

Some jurisdictions recognize claims when an employment termination violates a clear public policy, but coverage and exceptions vary.

Incorrect Answers

A:

Administrative exhaustion and strict filing limits can affect employment retaliation remedies even if the underlying facts warrant investigation; here the operative distinction is Public-policy wrongful discharge.

B:

Disciplinary action must take account of enforceable contract terms and statutory employment procedures, not just internal suspicion; those prerequisites should not be confused with Public-policy wrongful discharge.

C:

Unverified harmful factual assertions made to third parties can produce defamation or privacy claims, subject to applicable qualified privileges; public-policy wrongful discharge addresses the distinct legal requirement stated in the facts.

D:

Some privacy protections are mandatory and consent may need to be specific, freely given and informed; a broad waiver may be ineffective; public-policy wrongful discharge raises a different threshold from this alternative.

Question 464

A reporter alleges retaliation but the complaint falls outside a specific whistleblower statute's filing deadline. Which procedural issue matters?

  1. Public-policy wrongful discharge
  2. Defamatory employment reference
  3. Employment-contract notice duty
  4. Retaliation claim timeliness
  5. Limits on blanket consent

Explanation

Correct Answer

D:

Administrative exhaustion and strict filing limits can affect employment retaliation remedies even if the underlying facts warrant investigation.

Incorrect Answers

A:

Some jurisdictions recognize claims when an employment termination violates a clear public policy, but coverage and exceptions vary; that concept must be distinguished from Retaliation claim timeliness here.

B:

Unverified harmful factual assertions made to third parties can produce defamation or privacy claims, subject to applicable qualified privileges; the circumstances point to Retaliation claim timeliness rather than that separate test.

C:

Disciplinary action must take account of enforceable contract terms and statutory employment procedures, not just internal suspicion; retaliation claim timeliness is the issue raised by the described conduct.

E:

Some privacy protections are mandatory and consent may need to be specific, freely given and informed; a broad waiver may be ineffective; the inquiry instead concerns Retaliation claim timeliness, with its own elements.

Question 465

A team asks employees to sign a blanket waiver of all privacy rights before a fraud inquiry. Which problem is apparent?

  1. Voluntariness of consent
  2. Consent-scope excess
  3. Segregation of personal information
  4. Limits on blanket consent

Explanation

Correct Answer

D:

Some privacy protections are mandatory and consent may need to be specific, freely given and informed; a broad waiver may be ineffective.

Incorrect Answers

A:

Coercive workplace pressure can undermine an asserted consent basis, especially where meaningful refusal is impossible under governing law; the relevant step in this scenario is Limits on blanket consent.

B:

An authorization limited by subject or data category should not be enlarged by investigator preference without another lawful basis; here the operative distinction is Limits on blanket consent.

C:

A lawful review protocol should distinguish responsive corporate evidence from unrelated personal content in mixed-use devices; those prerequisites should not be confused with Limits on blanket consent.

Question 466

An investigator pressures a vulnerable employee to consent to a phone search by threatening arbitrary dismissal. Which feature is in question?

  1. Consent-scope excess
  2. Segregation of personal information
  3. Voluntariness of consent
  4. Limits on blanket consent

Explanation

Correct Answer

C:

Coercive workplace pressure can undermine an asserted consent basis, especially where meaningful refusal is impossible under governing law.

Incorrect Answers

A:

An authorization limited by subject or data category should not be enlarged by investigator preference without another lawful basis; voluntariness of consent raises a different threshold from this alternative.

B:

A lawful review protocol should distinguish responsive corporate evidence from unrelated personal content in mixed-use devices; that concept must be distinguished from Voluntariness of consent here.

D:

Some privacy protections are mandatory and consent may need to be specific, freely given and informed; a broad waiver may be ineffective; the circumstances point to Voluntariness of consent rather than that separate test.

Question 467

A worker consents to inspection of selected work messages but investigators search years of unrelated family photos. Which defect arises?

  1. Segregation of personal information
  2. Voluntariness of consent
  3. Consent-scope excess
  4. Limits on blanket consent

Explanation

Correct Answer

C:

An authorization limited by subject or data category should not be enlarged by investigator preference without another lawful basis.

Incorrect Answers

A:

A lawful review protocol should distinguish responsive corporate evidence from unrelated personal content in mixed-use devices; the inquiry instead concerns Consent-scope excess, with its own elements.

B:

Coercive workplace pressure can undermine an asserted consent basis, especially where meaningful refusal is impossible under governing law; the relevant step in this scenario is Consent-scope excess.

D:

Some privacy protections are mandatory and consent may need to be specific, freely given and informed; a broad waiver may be ineffective; here the operative distinction is Consent-scope excess.

Question 468

An employee initially consents to a voluntary review of a personal phone for one expense report, then withdraws consent before any additional search. The employer has no separate lawful access basis. Which next step best respects the boundary?

  1. Continue to search every private account because consent once given is irrevocable
  2. Treating refusal to extend consent as inculpatory evidence
  3. Deleting prior collection logs to make the withdrawal untraceable
  4. Stop further voluntary access and assess whether any independent authority permits collection

Explanation

Correct Answer

D:

A voluntary authorization is typically limited by its terms and applicable revocation rules; absent other authority, further searching should stop while legal grounds are reassessed.

Incorrect Answers

A:

Consent cannot ordinarily be expanded into perpetual unrestricted access merely because a limited review began.

B:

A person may have lawful reasons to decline additional access; the underlying expense-fraud allegation requires independent evidence rather than an adverse inference from declining consent.

C:

An investigator should maintain accurate records of authorized work already performed, including any lawful hold requirements; concealing or destroying logs is not a remedy for withdrawal.

Question 469

An accused employee asks to view allegations before discipline, and local law mandates a fair hearing. Which procedural protection matters?

  1. Fair notice of allegations
  2. Meaningful opportunity to respond
  3. Predetermination and bias
  4. Unnecessary sensitive-data disclosure

Explanation

Correct Answer

A:

Notice sufficient to permit an effective answer may be required before certain adverse employment decisions, without guaranteeing full criminal discovery rights.

Incorrect Answers

B:

A fair procedure permits consideration of the subject's relevant answer and contradictory evidence when applicable employment rules require it; fair notice of allegations is the issue raised by the described conduct.

C:

Decision-makers should assess evidence fairly; a fixed outcome can undermine employment-process requirements and the credibility of findings; the inquiry instead concerns Fair notice of allegations, with its own elements.

D:

Witness preparation should use relevant, authorized facts and avoid distributing sensitive data without lawful purpose or safeguards; the relevant step in this scenario is Fair notice of allegations.

Question 470

An employee receives an allegation notice just minutes before a hearing despite a policy requiring a reasonable opportunity to prepare a defense. Which fairness issue is most directly implicated?

  1. An automatic grant of criminal immunity from attending a disciplinary hearing
  2. Adequate time to prepare a meaningful response under the applicable procedure
  3. Disclosure of witness identities and personal records without restrictions
  4. The company's obligation to establish criminal guilt beyond reasonable doubt

Explanation

Correct Answer

B:

Where rules promise a meaningful chance to respond, notice may be deficient if the employee lacks reasonable time to review the charge and relevant evidence.

Incorrect Answers

A:

The employee's right to prepare a workplace defense is distinct from statutory immunity, which ordinarily must come from a competent public authority and relevant legal process.

C:

A fair allegation response can be provided through controlled disclosure and redaction; the existence of a complaint does not cancel other people's confidentiality rights.

D:

Employer discipline usually operates under employment rules, not the criminal trial's beyond-reasonable-doubt requirement.

Certified Fraud Examiner - Law (CFE - Law) Practice Tests