CFE Conducting Investigations 5

Question 1

A fraud examiner is writing the final investigation report. Which element is MOST important to include to ensure the report's usefulness?

Accepted Answer

Factual findings supported by specific evidence with clear source citations

Answer

Effective investigation reports present factual findings tied to specific evidence; opinions, speculation, and prosecutorial recommendations exceed the examiner's proper role.

Question 2

Which of the following interview approaches is MOST appropriate when a fraud examiner needs to establish rapport with a reluctant witness?

Accepted Answer

Start with non-threatening, open-ended questions about the witness's background

Answer

Establishing rapport through open-ended, non-threatening questions encourages reluctant witnesses to share information more freely.

Question 3

Under the ACFE Code of Professional Ethics, a fraud examiner who receives gifts from a suspect under investigation should:

Accepted Answer

Refuse all gifts and report the attempt to supervisors

Answer

The ACFE Code requires fraud examiners to refuse gifts that could compromise their objectivity and to report such attempts to maintain professional integrity.

Question 4

A fraud examiner reviewing emails discovers attorney-client privileged communications that are relevant to the investigation. The examiner should:

Accepted Answer

Immediately stop reviewing and consult legal counsel before proceeding

Answer

Inadvertent disclosure of privileged communications requires immediate cessation of review and consultation with legal counsel to avoid waiving the privilege.

Question 5

The 'Benford's Law' analysis technique in fraud investigations is used to:

Accepted Answer

Detect anomalies in numerical data by comparing leading digit frequency distributions

Answer

Benford's Law states that in naturally occurring datasets, leading digits follow a predictable distribution; deviations may indicate data manipulation.

Certified Fraud Examiner Exam Practice Test

Certified Fraud Examiner Exam Practice Test

CFE Conducting Investigations 5