ACFE Investigation 3 — Questions and Answers
Question 1: Which surveillance method involves an investigator physically following a subject to observe their activities and movements?
- Stationary surveillance
- Electronic surveillance
- Moving surveillance (Correct answer)
- Undercover surveillance
Correct answer: Moving surveillance
Moving surveillance, also called a 'tail,' involves investigators physically following a subject to observe activities and record movements.
Question 2: When conducting a covert investigation, what is the BIGGEST risk of interviewing a suspect prematurely?
- The suspect may request legal counsel
- The suspect may destroy evidence or alert co-conspirators (Correct answer)
- The investigation budget may be exceeded
- The suspect may file a defamation lawsuit
Correct answer: The suspect may destroy evidence or alert co-conspirators
Premature suspect interviews can tip off the subject, causing evidence destruction, flight, or warnings to co-conspirators before the investigation is complete.
Question 3: In the context of fraud investigations, what does 'spoliation of evidence' refer to?
- Improper storage of physical evidence
- The intentional destruction or alteration of evidence (Correct answer)
- Unauthorized access to confidential records
- Failure to disclose evidence to opposing counsel
Correct answer: The intentional destruction or alteration of evidence
Spoliation refers to the intentional or negligent destruction, alteration, or concealment of evidence relevant to an investigation or litigation.
Question 4: Which data analysis technique is MOST effective for detecting fictitious vendors in a purchasing scheme?
- Ratio analysis
- Horizontal analysis
- Duplicate payment analysis
- Vendor master file review (Correct answer)
Correct answer: Vendor master file review
Reviewing the vendor master file for incomplete addresses, missing tax IDs, employee addresses, or sequential invoice numbers can reveal fictitious vendors.
Question 5: A fraud examiner is asked to testify as an expert witness. What is the MOST important qualification required for this role?
- Holding a CPA license
- Possessing specialized knowledge, skill, or experience relevant to the matter (Correct answer)
- Having law enforcement experience
- Being employed by a government agency
Correct answer: Possessing specialized knowledge, skill, or experience relevant to the matter
Under Federal Rule of Evidence 702, an expert witness must possess specialized knowledge, skill, experience, training, or education relevant to the subject matter.
Question 6: Which interview technique involves asking a suspect to recount events in reverse chronological order to detect deception?
- Strategic Use of Evidence (SUE)
- Cognitive interview technique
- Reverse order questioning (Correct answer)
- PEACE model
Correct answer: Reverse order questioning
Reverse order questioning asks subjects to recount events backwards, which is cognitively demanding for liars but easier for truthful subjects who recall actual memories.
Question 7: When documenting witness statements during a fraud investigation, what is the preferred method to ensure accuracy?
- Paraphrasing the witness's account in the investigator's own words
- Recording verbatim responses and having the witness review and sign (Correct answer)
- Summarizing key points in bullet form without witness review
- Relying solely on investigator memory without written notes
Correct answer: Recording verbatim responses and having the witness review and sign
Recording verbatim responses and obtaining witness review and signature ensures accuracy and reduces disputes about what was said during the interview.
ACFE Investigation 3
Which surveillance method involves an investigator physically following a subject to observe their activities and movements?