CFE Evidence and Legal Systems 2 — Questions and Answers
Question 1: Which type of evidence is considered the most reliable in fraud investigations because it speaks for itself without requiring interpretation?
- Circumstantial evidence
- Testimonial evidence
- Real evidence (Correct answer)
- Demonstrative evidence
Correct answer: Real evidence
Real evidence (physical objects, documents, recordings) is considered highly reliable because it directly proves a fact without depending on witness credibility.
Question 2: Under the Federal Rules of Evidence, which hearsay exception allows admission of business records made in the regular course of business?
- Rule 803(6) — Records of a Regularly Conducted Activity (Correct answer)
- Rule 804(b)(3) — Statement Against Interest
- Rule 801(d)(2) — Admission by Party-Opponent
- Rule 807 — Residual Exception
Correct answer: Rule 803(6) — Records of a Regularly Conducted Activity
Rule 803(6) creates a hearsay exception for business records kept in the regular course of a regularly conducted activity, making them admissible without the declarant being unavailable.
Question 3: What legal doctrine requires that evidence obtained through illegal means be excluded from trial proceedings?
- The Best Evidence Rule
- The Exclusionary Rule (Correct answer)
- The Parol Evidence Rule
- The Fruit of the Poisonous Tree Doctrine
Correct answer: The Exclusionary Rule
The Exclusionary Rule bars the use of evidence obtained in violation of a defendant's constitutional rights, serving as a deterrent against unlawful government conduct.
Question 4: A fraud examiner discovers that a key witness has died before trial. Which hearsay exception would most likely allow admission of that witness's prior sworn deposition testimony?
- Present sense impression
- Excited utterance
- Former testimony (Correct answer)
- Dying declaration
Correct answer: Former testimony
Under FRE 804(b)(1), former testimony given under oath is admissible when the declarant is unavailable, provided the opposing party had an opportunity to cross-examine.
Question 5: In civil litigation, what is the standard of proof required to prevail in a fraud case?
- Beyond a reasonable doubt
- Clear and convincing evidence
- Preponderance of the evidence (Correct answer)
- Probable cause
Correct answer: Preponderance of the evidence
In most civil fraud cases, the plaintiff must prove by a preponderance of the evidence (more likely than not) that fraud occurred, though some jurisdictions require clear and convincing evidence.
Question 6: What is 'chain of custody' primarily designed to ensure in a fraud investigation?
- That witnesses are available for cross-examination
- That evidence has not been tampered with from collection to courtroom (Correct answer)
- That hearsay statements are properly documented
- That subpoenas are served in the correct legal order
Correct answer: That evidence has not been tampered with from collection to courtroom
Chain of custody is the documented, unbroken sequence of possession and control over evidence to prove it has not been altered, contaminated, or tampered with.
Question 7: Which evidentiary concept holds that the original document must be produced when its content is at issue, rather than a copy or oral description?
- Parol Evidence Rule
- Best Evidence Rule (Correct answer)
- Completeness Doctrine
- Authentication Requirement
Correct answer: Best Evidence Rule
The Best Evidence Rule (FRE 1002) requires the original document when proving its contents, though duplicates are generally admissible unless authenticity is genuinely questioned.
CFE Evidence and Legal Systems 2
Which type of evidence is considered the most reliable in fraud investigations because it speaks for itself without requiring interpretation?