CFE Conducting Investigations 2

Question 1

During a fraud investigation, an examiner discovers that a key witness is also a potential suspect. What is the BEST initial approach?

Accepted Answer

Interview the witness as a neutral party while preserving the ability to re-interview later

Answer

Interviewing a potential witness/suspect neutrally preserves investigative flexibility and avoids tipping off the subject prematurely.

Question 2

Which type of evidence is considered MOST reliable in a fraud investigation because it is created contemporaneously with the events?

Accepted Answer

Documentary evidence

Answer

Documentary evidence created at the time of the events is generally considered most reliable because it reflects real-time records rather than after-the-fact recollections.

Question 3

A fraud examiner is conducting surveillance on a suspect. Which activity would MOST likely require prior legal authorization?

Accepted Answer

Recording conversations in a private office without consent

Answer

Recording private conversations without consent typically requires legal authorization under federal and state wiretapping laws.

Question 4

When an investigation reveals evidence of criminal activity, the fraud examiner should PRIMARILY:

Accepted Answer

Report findings to the appropriate level of management or legal counsel

Answer

The fraud examiner should report criminal evidence to management or legal counsel, who will determine whether to involve law enforcement.

Question 5

Which technique is MOST effective for detecting fictitious vendor fraud in a company's accounts payable system?

Accepted Answer

Matching vendor addresses against employee addresses

Answer

Fictitious vendor fraud often involves vendors using the same address as an employee, making address matching a key detection technique.

Certified Fraud Examiner Exam Practice Test

Certified Fraud Examiner Exam Practice Test

CFE Conducting Investigations 2