Certified Fraud Examiner Conducting Investigations Questions and Answers

Question 1

A fraud examiner is investigating a complex kickback scheme allegedly involving a purchasing manager, a vendor, and a junior accounts payable clerk who may have unknowingly processed fraudulent invoices.
What is the generally recommended order for interviewing these individuals?

Accepted Answer

Accounts Payable Clerk, then the Vendor, and finally the Purchasing Manager.

Answer

Vendor, then the Accounts Payable Clerk, and finally the Purchasing Manager.

Answer

Purchasing Manager, then the Vendor, and finally the Accounts Payable Clerk.

Answer

Purchasing Manager, then the Accounts Payable Clerk, and finally the Vendor.

Question 2

A Certified Fraud Examiner (CFE) obtains a series of original invoices during an investigation. To ensure the invoices are admissible as evidence in a legal proceeding, what is the MOST critical process the CFE must maintain from the moment of collection?

Accepted Answer

Chain of custody

Answer

Evidence corroboration

Answer

Predication log

Answer

Document analysis

Question 3

During an admission-seeking interview with a suspect, the fraud examiner asks, "It must have been difficult to support your family on your salary, wasn't it?" This question is an example of which type of admission-seeking technique?

Accepted Answer

Offering rationalization

Answer

A direct accusation

Answer

A benchmark admission

Answer

A leading question

Question 4

A CFE is hired by a private corporation to investigate suspected inventory theft. The CFE searches a suspect's unlocked personal locker on company property and discovers stolen goods. In a subsequent criminal prosecution, the suspect's attorney moves to suppress the evidence, claiming an illegal search. How is a court most likely to rule?

Accepted Answer

Admit the evidence because the CFE is a private party not subject to Fourth Amendment restrictions.

Answer

Suppress the evidence because the CFE did not obtain a search warrant.

Answer

Admit the evidence because the locker was company property.

Answer

Suppress the evidence because the suspect had a reasonable expectation of privacy.

Question 5

A fraud examination should only be initiated when there is a sufficient basis to believe a fraud may have occurred. This basis is known as:

Accepted Answer

Predication

Answer

Corroboration

Answer

A confession

Answer

An allegation

Question 6

Which of the following is a primary objective of a formal fraud examination report?

Accepted Answer

To provide recommendations for improving internal controls to prevent future fraud.

Answer

To express a definitive opinion on the legal guilt or innocence of a suspect.

Answer

To serve as a confidential memo exclusively for senior management's review.

Answer

To persuade the reader of a particular outcome without presenting conflicting evidence.