CFE Conducting Investigations 3

Question 1

In fraud investigations, the term 'chain of custody' refers to:

Accepted Answer

The documented chronological record of evidence handling from collection to court

Answer

Chain of custody documents every person who handled the evidence, ensuring its integrity and admissibility in legal proceedings.

Question 2

A fraud examiner conducting a cognitive interview would MOST likely ask the subject to:

Accepted Answer

Recall events in reverse chronological order to stimulate memory

Answer

The cognitive interview technique includes recalling events in different orders (including reverse) to enhance memory retrieval.

Question 3

Which of the following BEST describes a 'pretext' in the context of fraud investigations?

Accepted Answer

Misrepresenting one's identity or purpose to gather information

Answer

A pretext involves using a false identity or pretense to obtain information, which raises significant legal and ethical concerns.

Question 4

When interviewing a subject who invokes their Fifth Amendment right against self-incrimination in an internal investigation, the fraud examiner should:

Accepted Answer

Consult legal counsel and document the invocation

Answer

Consulting legal counsel and documenting the invocation is the appropriate response to protect the investigation and the organization's legal position.

Question 5

A net worth analysis in a fraud investigation is primarily used to:

Accepted Answer

Identify unexplained increases in a subject's wealth beyond known income

Answer

Net worth analysis compares a subject's assets and liabilities over time to identify wealth increases that cannot be explained by legitimate income.

Certified Fraud Examiner Exam Practice Test

Certified Fraud Examiner Exam Practice Test

CFE Conducting Investigations 3