CFA Investigation Memo & Case File 3

Question 1

Which tabbing or indexing system is commonly recommended for organizing a physical fraud investigation case file?

Accepted Answer

A logical structure with sections for background, evidence, interviews, and legal referrals

Answer

Organizing a case file into logical sections (background, evidence, interviews, referrals) makes the file easy to navigate and present in legal proceedings.

Question 2

When a fraud examiner receives a subpoena for records in the case file, the first action should be to:

Accepted Answer

Notify legal counsel and preserve all relevant documents without alteration

Answer

Upon receiving a subpoena, the examiner must notify legal counsel and implement a litigation hold to prevent spoliation of evidence.

Question 3

A case file memo references surveillance footage captured on Day 5 of the investigation. The footage file is stored digitally. What must accompany it in the case file?

Accepted Answer

Metadata documentation and a hash value to verify the file has not been altered

Answer

Digital evidence integrity is verified through hash values (e.g., MD5 or SHA-256), which confirm the file has not been modified since collection.

Question 4

In a fraud case file, a 'suspect profile' document typically includes which of the following?

Accepted Answer

Background information, role within the organization, and documented behavioral red flags

Answer

A suspect profile compiles factual background, organizational role, and documented red flags to provide context for the investigation.

Question 5

Which of the following memo entries would be INAPPROPRIATE in a professionally maintained fraud case file?

Accepted Answer

'Subject appears to be lying based on his nervous demeanor during the interview.'

Answer

Characterizing a subject's demeanor as evidence of lying is an unsupported subjective conclusion inappropriate for an objective investigation record.

CFA Practice Test

CFA Practice Test

CFA Investigation Memo & Case File 3