ACFE Certified Fraud Examiner CFE-INVESTIGATION Questions & Answers

• Question 1:

  Which of the following is the MOST ACCURATE statement about how fraud examiners should approach fraud examinations?

  A. When conducting fraud examinations, fraud examiners should adhere to the me an sand-ends approach

  B. In most examinations fraud examiners should interview those who are more involved in the matters at issue before interviewing those who are less involved.

  C. When conducting fraud examinations fraud examiners should operate under the assumption that the subjects are guilty

  D. Fraud examinations should begin with general information that is known, starting at the periphery, and then move to the more specific details.

  Correct Answer: D

• Question 2:

  Which of the following is TRUE of a follow-up/recommendations section in a written fraud examination report?

  A. A follow-up/recommendations section calculates the amount of fraud-related loss sustained by the organization

  B. A follow-up/recommendations section is a required part of every written fraud examination report

  C. A follow-up/recommendations section should stale remedial measures for me organization !o undertake

  D. All of the above

  Correct Answer: C

• Question 3:

  Max The controller of XYZ Company, noticed that the company's hotel expenses increased substantially from the prior year. He wants to check to see if this is reasonable by comparing hotel expenses from both years to the number to that XYZ's employees traveled. Which of the following date analysis function would be the most useful In helping Max analyze these two variables?

  A. Benford's Law analysts

  B. Verifying mutinies of a number

  C. Duplicate testing

  D. Correlation analysis

  Correct Answer: D

• Question 4:

  Which of the following is NOT one of the main limitations of conducting a search for public records using online databases?

  A. Public records database companies are difficult to find

  B. Online public records searches are limited in the jurisdictions they cover

  C. Online coverage of public records varies widely from jurisdiction lo Jurisdiction

  D. The timeliness and accuracy of information in online databases must be validated

  Correct Answer: A

• Question 5:

  Tonya, a suspect in a kickback scheme is being interviewed by Carlos, a fraud examiner As the interview progresses. Carlos notices that Tonya is exhibiting signs of stress such as repeatedly touching her face, crossing and uncrossing her legs and darting her eyes around the room. Carlos should conclude that Tonya's behavior is the result of deception.

  A. True

  B. False

  Correct Answer: B

• Question 6:

  A fraud examiner suspects that an employee who is tasked with meeting new customers over business dinners to discuss their accounts is using those meetings to proposition the customers and steal business from the employee's company. If the fraud examiner wanted to pose as a new customer and meet with the employee, which of the following would beet describe the fraud examiner's method?

  A. An undercover operation

  B. An entrapment operation

  C. A surveillance operation

  D. A source operation

  Correct Answer: B

• Question 7:

  Verify supporting documentation on outstanding checks written for a material amount is a test used to conduct for:

  A. Check disbursement

  B. Bank confirmation

  C. Bank confirmation

  D. Cut-off statements

  Correct Answer: C

• Question 8:

  Anita is interviewing her client's employee whom she suspects committed check fraud. During the interview Anita asks if she can obtain account records from the suspect s bank. If the suspect only gives Anita oral consent. the suspect's bank is required to allow Anita access to the suspect s account records

  A. True

  B. False

  Correct Answer: A

• Question 9:

  A. Prepaying a home mortgage

  B. Transferring assets into another person's name

  C. Purchasing a used vehicle

  D. Purchasing a life Insurance policy

  Correct Answer: B

• Question 10:

  Which at the following situations would most likely requite access to nonpublic records to develop evidence?

  A. Determining who owns a piece of real estate

  B. Reviewing an individual's personal mobile phone records

  C. Obtaining a company's business filings

  D. Finding out where a person lives

  Correct Answer: C