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ACFE CFE-Investigation Certified Fraud Examiner (CFE) - Investigation Exam Practice Test

Demo: 25 questions
Total 170 questions

Certified Fraud Examiner (CFE) - Investigation Questions and Answers

Question 1

Bobbie, a fraud examiner, is preparing to interview Craig, a close friend and coworker of the primary suspect in the case. Craig has been described by others as "easily angered" and "intense" How should Bobbie approach her interview of Craig?

Options:

A.

Provide Craig with plenty of notice prior to the interview to not provoke resentment

B.

Conduct the interview with as little notice as possible so Craig will be unprepared

C.

Ask Craig when ho would prefer to be interviewed in an effort to engender cooperation

D.

Avoid interviewing Craig if possible due to Craig's potential volatility

Question 2

Which of the following types of information would LEAST LIKELY be found when searching external sources without the subject's consent or a legal order?

Options:

A.

A witness's address

B.

Assets owned by a subject

C.

A subject's employee personnel file

D.

A competitor's ownership information

Question 3

Which of the following situations would probably NOT require access to nonpublic records to develop evidence?

Options:

A.

Obtaining personal health care records

B.

Accessing banking records to trace assets

C.

Reviewing a company's business filings

D.

Analyzing an individual's personal mobile phone records

Question 4

Fraud examination reports should be written with which of the following audiences in mind?

Options:

A.

The media

B.

Opposing legal counsel

C.

Investors and owners

D.

All of the above

Question 5

Mila. a Certified Fraud Examiner (CFE). needs to obtain court records and wants to be as sure as possible that the records are accurate In most countries, the most reliable way lo obtain these documents is to obtain them directly from the court authorities.

Options:

A.

True

B.

False

Question 6

Which of the following is a measure that can help avoid alerting suspected perpetrators who are under investigation?

Options:

A.

Terminate the suspected employee.

B.

Notify everyone in the affected department

C.

Delay taking any action.

D.

Inform only those who need to know.

Question 7

Gilbert is preparing to conduct a covert investigation. Before acting, he wants to wnte a memorandum documenting his plan. Which of the following pieces of information should he include in this memorandum?

Options:

A.

The information expected to be gained from the operation

B.

The identities of any confidential sources to be used in the operation

C.

His first impression regarding the subject's culpability

D.

All of the above

Question 8

Which of the following can be obtained from a wire transfer record?

Options:

A.

The name of the receiving institution's registered agent

B.

The recipient's government identification number

C.

The name of the sender or originator

D.

The sending institution's accreditation type

Question 9

Which of the following statements is MOST ACCURATE regarding how a fraud examiner should prepare for an interview with a subject from a different jurisdiction?

Options:

A.

Failing to observe cultural norms is not a concern if the interviewer is from a different country than the interviewee.

B.

Consulting with legal counsel is only necessary when an investigation spans multiple

C.

A fraud examiner should find out whether the interviewee can insist upon the presence of a legal representative

D.

A fraud examiner does not need to research cultural considerations such as appropriate greetings and eye contact.

Question 10

Tony, a fraud examiner, believes that vendors might be submitting multiple invoices for the same sales with the hope that they will be paid more than once. He wants to ensure that no two invoices in the system have the same number. Which of the Mowing data analysis functions would be most useful for this test?

Options:

A.

Duplicate search

B.

Benford's Law analysis

C.

Correlation analysis

D.

Linear regression

Question 11

Which of the following is considered a best practice for preserving the confidentiality of a fraud investigation?

Options:

A.

Suspend all employees involved in the investigation pending the investigation's outcome.

B.

Ensure that the investigation is conducted at the direction of, or under the supervision of. a government official

C.

Avoid using email or other electronic means to transmit confidential case information

D.

Implement a blanket policy prohibiting all employees from discussing anything related to employee investigations

Question 12

Scarlett, a Certified Fraud Examiner (CFE). is assigned to the internal audit department of the ABC Company. She is getting ready to conduct an interview with another company employee who might be involved in a fraud. Which of the following is the MOST APPROPRIATE introduction for Scarlett to use with the employee?

Options:

A.

"Hello, my name is Scarlett, and I'm with the ABC Company."

B.

"Hello, my name is Scarlett. I'm an auditor with the ABC Company."

C.

"Hello, my name is Scarlett. I'm a Certified Fraud Examiner and an auditor with the ABC Company."

D.

"Hello, my name is Scarlett. I'm a Certified Fraud Examiner with the ABC Company."

Question 13

Rachel, a fraud suspect, has decided to confess to Linda, a Certified Fraud Examiner (CFE). In obtaining a verbal confession from Rachel. Linda should obtain all of the following items of information EXCEPT:

Options:

A.

The approximate beginning and end dates of the fraud

B.

A statement from Rachel that her conduct was an accident

C.

A general estimate of the amount of money involved

D.

Rachel's motive for the offense

Question 14

Charles, a fraud examiner, accuses George of fraud during an admission-seeking interview. George immediately denies the charge How should Charles respond to George's denial?

Options:

A.

Counter the denial by arguing with George until further denials are futile

B.

Use a delaying tactic to interrupt the denial

C.

Remind George he has to tell the truth or face perjury.

D.

Allow George to continue denying the charge.

Question 15

Allison, a Certified Fraud Examiner (CFE). is investigating a potential procurement fraud scheme. While interviewing a subject, she asks. "Why did you choose to do business with that vendor?" This can BEST be described as a(n):

Options:

A.

Open question

B.

Complex question

C.

Leading question

D.

Closed question

Question 16

Which of the following statements is MOST ACCURATE regarding how a fraud examiner should prepare for an interview with a subject from a different jurisdiction?

Options:

A.

A fraud examiner does not need to research cultural considerations such as personal space and eye contact.

B.

A fraud examiner should find out whether there are limitations on the use of information obtained during an interview

C.

Failing to observe cultural norms is not a concern if the interviewer is from a different country than the interviewee

D.

Consulting with legal counsel is only necessary when an investigation spans multiple junsdictions

Question 17

Jackson, a Certified Fraud Examiner (CFE). is analyzing Elm Company's accounts payable data to identify anomalies that might indicate fraud. Which of the following is the MOST EFFECTIVE data analysis function that Jackson could use to look for potential fraud in accounts payable?

Options:

A.

Compare book and tax depreciation and indicate variances

B.

Identify paychecks with amounts over a certain limit

C.

Summarize large invoices by amount and vendor

D.

All of the above

Question 18

Which of the following data is the MOST DIFFICULT to recover during a digital forensic examination?

Options:

A.

Time and date information about files

B.

Websites visited

C.

Files that have been overwritten

D.

Communications sent via instant messenger

Question 19

Due to risks of illicit transactions, most jurisdictions require financial institutions to obtain information about which of the following from an institution with which they have a foreign correspondent relationship?

Options:

A.

The institution's ownership details

B.

The institution's investment portfolio

C.

The institution's client loan profiles

D.

The institution's tax statements

Question 20

Leslie, a fraud examiner for ACME Corporation, suspects that a salesperson for another company has defrauded ACME. Leslie wants to obtain a copy of the suspect individual's credit report and personal data from a third-party information broker If Leslie works in a jurisdiction that regulates the distribution of personal credit information, she generally can obtain the information if she has the consent of the individual.

Options:

A.

True

B.

False

Question 21

A law enforcement officer receives a reliable tip from an informant that a government employee is soliciting bribes in exchange for awarding contracts to the employee's agency. To investigate, the officer poses as a potential contractor and contacts the suspect employee about the possibility of getting a contract with the agency. During the conversation, the suspect demands a cash payment for the officer to be considered for upcoming contracts. If the suspect claims entrapment at trial, then which of the following is MOST LIKELY to occur?

Options:

A.

The suspect's claim will succeed because the investigator used deceit

B.

The suspect's claim will succeed because the investigator lacked probable cause

C.

The suspect's claim will fail because the investigator had adequate predication

D.

The suspect's claim will fail because the investigator is a law enforcement agent

Question 22

Which of the following is the MOST IMPORTANT question for a fraud examiner to ask before commencing a legal action to recover assets?

Options:

A.

"Is there a relevant statute of limitations9"

B.

"Does the suspect already have a criminal record?"

C.

"Is the suspect guilty of the fraudulent act?''

D.

"Are nonlegal recovery methods or remedies available?''

Question 23

The term_____________refers to a process of resolving allegations of fraud from inception to disposition.

Options:

A.

Fraud theory

B.

Forensic investigation

C.

Fraud management

D.

Fraud examination

Question 24

After completing all necessary investigative steps. Erica, a Certified Fraud Examiner (CFE), is reasonably sure that Justine, her primary suspect, committed the fraud in question. Before scheduling an admission-seeking interview with Justine, what else should Erica be reasonably sure of?

Options:

A.

That Justine will confess to the accusation when prompted

B.

That Justine's employer will take disciplinary action against Justine if she confesses

C.

That the interview's time, place, and content can De controlled

D.

That no other person was involved in the fraud n question

Question 25

Lisa, a fraud examiner at a private company, receives an anonymous call from a potential whistleblower. The whistleblower is hesitant to reveal their identity but will do so if it can be Kept fully confidential. Which of the following statements is MOST ACCURATE?

Options:

A.

Lisa may offer the whistleblower full confidentiality because they are not a suspect

B.

Lisa should explain that she will try her best to keep the whistleblower"s identity confidential.

C.

Lisa should state that she will not be able to keep the whistleblower's identity confidential because all information must be disclosed to management

D.

Lisa may promise the whistleblower full confidentiality, even if she knows her statement is untrue, because the lie is ultimately beneficial to her employer.

Demo: 25 questions
Total 170 questions