CIG Auditing & Investigations 4 — Questions and Answers
Question 1: Under the Whistleblower Protection Act, a federal employee who discloses information about agency wrongdoing is protected unless the disclosure is:
- Made to a member of Congress
- Made to a supervisor within the agency
- Specifically prohibited by law or involves classified information improperly disclosed (Correct answer)
- Made in writing rather than orally
Correct answer: Specifically prohibited by law or involves classified information improperly disclosed
Whistleblower protections do not cover disclosures that are specifically prohibited by law or involve the improper disclosure of classified information.
Question 2: An investigator uses a 'pretext interview' in a fraud investigation. This technique involves:
- Interviewing the subject without disclosing the investigator's identity or true purpose (Correct answer)
- Reviewing records before conducting any interviews
- Interviewing witnesses before interviewing the subject
- Conducting the interview at an unexpected time and location
Correct answer: Interviewing the subject without disclosing the investigator's identity or true purpose
A pretext interview involves an investigator concealing their identity or true purpose to gather information, and its use is governed by agency policy and legal guidelines.
Question 3: The 'phantom employee' fraud scheme in payroll audits refers to:
- An employee who works under multiple false identities
- Fictitious employees added to payroll to divert fraudulent salary payments (Correct answer)
- An employee whose salary is inflated without authorization
- A former employee whose payroll access was not terminated
Correct answer: Fictitious employees added to payroll to divert fraudulent salary payments
Phantom employee fraud involves adding fictitious individuals to a payroll system so that fraudulent salary payments can be diverted to the perpetrator.
Question 4: When an OIG issues a management advisory rather than a formal audit report, it typically indicates:
- The findings are too serious to be included in a routine report
- The matter involves less significant issues that do not warrant a full audit report (Correct answer)
- Management has already agreed to correct all findings
- The audit was conducted under different standards than GAGAS
Correct answer: The matter involves less significant issues that do not warrant a full audit report
Management advisories are used to communicate less significant observations that do not rise to the level requiring a formal audit report but still warrant management attention.
Question 5: In federal investigations, a 'proffer agreement' is an arrangement where:
- A witness agrees to testify in exchange for witness protection
- A subject provides information in exchange for partial immunity from prosecution (Correct answer)
- The government agrees to drop all charges in exchange for cooperation
- An agency agrees to transfer a subject employee during an investigation
Correct answer: A subject provides information in exchange for partial immunity from prosecution
A proffer agreement allows a subject to provide information to investigators in exchange for limited protection, typically preventing that specific information from being used directly against them.
Question 6: Which analytical procedure would BEST help an auditor detect fictitious vendor payments in accounts payable?
- Comparing vendor addresses to employee addresses and P.O. box registrations (Correct answer)
- Reviewing the agency's vendor approval policy documentation
- Interviewing the accounts payable manager about control procedures
- Testing a sample of payments for proper authorization signatures
Correct answer: Comparing vendor addresses to employee addresses and P.O. box registrations
Matching vendor addresses against employee addresses and P.O. boxes is a data analytics technique that detects shell company fraud where employees create fictitious vendors at their own address.
Question 7: The 'right to representation' (Weingarten rights) entitles a federal employee to:
- Request legal counsel paid for by the government during any interview
- Have a union representative present during an investigative interview that may result in discipline (Correct answer)
- Refuse to answer any questions without a written Miranda warning
- Review all investigative documents before being interviewed
Correct answer: Have a union representative present during an investigative interview that may result in discipline
Weingarten rights entitle federal employees who are union members to request union representation during investigative interviews they reasonably believe could lead to disciplinary action.
CIG Auditing & Investigations 4
Under the Whistleblower Protection Act, a federal employee who discloses information about agency wrongdoing is protected unless the disclosure is: