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Certified Fraud Examiner (CFE) - Law

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CFE-Law PDF

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Certified Fraud Examiner (CFE) - Law Questions and Answers

Questions 1

Clara is a fraud examiner investigating a potentially fraudulent misrepresentation made in the sale of a security. Which of the following questions should Clara ask to determine if the misrepresentation was material?

Options:

A.  

"Would a reasonable investor want to know the information to make an informed decision?"

B.  

"Is the person who made the misrepresentation registered as a broker-dealer?"

C.  

"Were potential investors promised guaranteed returns in the misrepresentation?"

D.  

"Did the person who made the representation have authorization to make the statements that are in dispute?"