CFS Investigation Techniques & Ethics 2 — Questions and Answers
Question 1: During a fraud investigation, an investigator discovers evidence of wrongdoing by a colleague. What is the ethical obligation?
- Ignore it to preserve team cohesion
- Report it through appropriate channels regardless of relationships (Correct answer)
- Confront the colleague privately and allow them to self-report
- Document it but take no action unless directly asked
Correct answer: Report it through appropriate channels regardless of relationships
Investigators have a professional duty to report discovered wrongdoing through proper channels, even when it involves colleagues.
Question 2: Which technique is MOST appropriate when an investigator wants to assess the truthfulness of a subject's statement without a formal interview?
- Polygraph examination
- Statement analysis of written accounts (Correct answer)
- Covert surveillance
- Social media monitoring
Correct answer: Statement analysis of written accounts
Statement analysis examines the linguistic structure of written or verbal accounts to identify deception indicators without formal interrogation.
Question 3: An investigator is conducting a net worth analysis on a fraud suspect. What does a significant unexplained increase in net worth suggest?
- Legitimate investment success
- Possible undisclosed income from fraud proceeds (Correct answer)
- Inheritance from family members
- Normal salary progression
Correct answer: Possible undisclosed income from fraud proceeds
Unexplained net worth increases that exceed known income sources are a classic indicator of concealed fraud proceeds.
Question 4: Which of the following best describes the concept of 'chain of custody' in fraud investigations?
- The hierarchy of supervisors who approved the investigation
- The documented sequence of possession and control of evidence (Correct answer)
- The order in which witnesses are interviewed
- The chain of command for reporting findings
Correct answer: The documented sequence of possession and control of evidence
Chain of custody documents who collected, handled, transferred, and stored evidence to ensure its integrity and admissibility.
Question 5: A CFS investigator is asked by management to exclude certain findings from the investigation report. What is the proper response?
- Comply if management provides a business justification
- Exclude findings only if they involve minor issues
- Refuse and document the request, as all material findings must be reported (Correct answer)
- Seek guidance from legal counsel before deciding
Correct answer: Refuse and document the request, as all material findings must be reported
Investigators must maintain objectivity and completeness; suppressing material findings compromises professional integrity and may constitute obstruction.
Question 6: When interviewing a fraud suspect using the cognitive interview technique, what is the primary goal?
- Obtaining a confession as quickly as possible
- Maximizing the amount of accurate information recalled (Correct answer)
- Confronting the suspect with contradictory evidence
- Establishing a rapport before accusatory questioning
Correct answer: Maximizing the amount of accurate information recalled
The cognitive interview uses memory-enhancing techniques to help subjects recall more complete and accurate information.
Question 7: Which ethical principle requires a fraud investigator to maintain competence in the methods and tools used during an investigation?
- Confidentiality
- Due professional care (Correct answer)
- Independence
- Objectivity
Correct answer: Due professional care
Due professional care requires investigators to possess the knowledge, skills, and diligence necessary to perform their work competently.
CFS Investigation Techniques & Ethics 2
During a fraud investigation, an investigator discovers evidence of wrongdoing by a colleague.
What is the ethical obligation?