CFA Investigation Memo & Case File 2 — Questions and Answers
Question 1: Which element is most critical to include at the top of every investigation memo to preserve confidentiality?
- Date and reference number only
- A privilege header such as 'Attorney-Client Privileged / Attorney Work Product' (Correct answer)
- The name of the suspected fraudster
- The monetary amount of alleged fraud
Correct answer: A privilege header such as 'Attorney-Client Privileged / Attorney Work Product'
Privilege headers protect investigation memos from disclosure in litigation by asserting attorney-client or work-product protections.
Question 2: When documenting a witness interview in a case file, what is the standard format recommended by the ACFE?
- A verbatim transcript generated by stenographer
- A signed affidavit sworn before a notary
- A memorandum of interview written promptly after the interview concludes (Correct answer)
- A recorded audio file with no accompanying written summary
Correct answer: A memorandum of interview written promptly after the interview concludes
The ACFE recommends preparing a memorandum of interview shortly after the session to capture key statements while details are fresh.
Question 3: A fraud examiner discovers a document that contradicts a key witness statement. Where should this discrepancy first be noted?
- Only in the final written report
- In the relevant section of the working case file with cross-references to both items (Correct answer)
- Verbally to the client sponsor only
- In a separate informal email to counsel
Correct answer: In the relevant section of the working case file with cross-references to both items
Discrepancies must be documented in the working case file with cross-references so the investigative record is complete and auditable.
Question 4: What is the primary purpose of a 'closing memo' in a fraud investigation case file?
- To identify new suspects for future investigation
- To summarize final findings, conclusions, and disposition of the matter (Correct answer)
- To request additional budget from management
- To notify law enforcement of the investigation
Correct answer: To summarize final findings, conclusions, and disposition of the matter
A closing memo formally documents that the investigation is concluded and records the final findings, conclusions, and any resulting actions.
Question 5: Which of the following best describes the 'chain of custody' documentation requirement for physical evidence added to a case file?
- A log recording every person who accessed or transferred the evidence (Correct answer)
- A photograph of the evidence taken at the scene
- A written description of the evidence's monetary value
- An email from the suspect acknowledging the evidence exists
Correct answer: A log recording every person who accessed or transferred the evidence
Chain of custody logs track every individual who handled evidence, ensuring its integrity and admissibility if the case proceeds to litigation.
Question 6: An investigation memo referencing a prior memo should use which technique to ensure the case file is logically navigable?
- Copy and paste the prior memo's full text inline
- Use a cross-reference notation (e.g., 'See Memo 04, Tab C') and index entries (Correct answer)
- Delete the prior memo to avoid redundancy
- Summarize the prior memo in a footnote only
Correct answer: Use a cross-reference notation (e.g., 'See Memo 04, Tab C') and index entries
Cross-reference notations and index entries allow reviewers to quickly locate related materials without duplicating content throughout the file.
Question 7: Why should investigation memos avoid including the examiner's personal opinions about a subject's guilt?
- Opinions are irrelevant to any legal proceeding
- Unsupported opinions could expose the examiner to defamation claims and undermine the objectivity of the report (Correct answer)
- Regulatory rules prohibit all subjective language in memos
- Opinions lengthen the memo unnecessarily
Correct answer: Unsupported opinions could expose the examiner to defamation claims and undermine the objectivity of the report
Including unsupported opinions about guilt risks defamation liability and can be attacked in court to discredit the entire investigation.
CFA Investigation Memo & Case File 2
Which element is most critical to include at the top of every investigation memo to preserve confidentiality?