ACFE Certified Fraud Examiner (CFE) - Law CFE-Law Question # 29 Topic 3 Discussion

ACFE Certified Fraud Examiner (CFE) - Law CFE-Law Question # 29 Topic 3 Discussion

CFE-Law Exam Topic 3 Question 29 Discussion:
Question #: 29
Topic #: 3

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?


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?"


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