CFI CFI Investigative Methodology & Crime Scene Analysis 2

Question 1

When conducting a financial investigation, the 'net worth method' is used to:

Accepted Answer

Detect unreported income by comparing increases in net worth with reported income

Answer

The net worth method detects hidden income by analyzing unexplained increases in a subject's net worth versus their reported earnings.

Question 2

The 'source and application of funds' method in financial investigations:

Accepted Answer

Identifies unexplained cash flows by comparing income sources with all expenditures

Answer

This method identifies financial discrepancies by comparing all known fund sources against all known applications of those funds.

Question 3

What does 'modus operandi' (MO) analysis help investigators determine?

Accepted Answer

Patterns in how a perpetrator commits crimes that can link multiple incidents

Answer

MO analysis identifies behavioral patterns in crime commission that can link separate incidents to the same perpetrator.

Question 4

In workplace investigations, the 'preponderance of evidence' standard means:

Accepted Answer

It is more likely than not (greater than 50%) that the alleged conduct occurred

Answer

The preponderance standard requires that the evidence shows the alleged conduct is more likely than not to have occurred.

Question 5

Which investigative technique involves reviewing financial records for unusual patterns to identify potential fraud?

Accepted Answer

Forensic accounting analysis

Answer

Forensic accounting analyzes financial records to identify irregularities, fraud patterns, and unexplained transactions indicative of wrongdoing.

(CFI) Certified Forensic Interviewer Practice Test