New Year Special Limited Time 70% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: 70special

ACFE CFE-Investigation Certified Fraud Examiner (CFE) - Investigation Exam Practice Test

Certified Fraud Examiner (CFE) - Investigation Questions and Answers

Testing Engine

  • Product Type: Testing Engine
$37.5  $124.99

PDF Study Guide

  • Product Type: PDF Study Guide
$33  $109.99
Question 1

Lisa, a fraud examiner at a private company, receives an anonymous call from a potential whistleblower. The whistleblower is hesitant to reveal their identity but will do so if it can be Kept fully confidential. Which of the following statements is MOST ACCURATE?

Options:

A.

Lisa may offer the whistleblower full confidentiality because they are not a suspect

B.

Lisa should explain that she will try her best to keep the whistleblower"s identity confidential.

C.

Lisa should state that she will not be able to keep the whistleblower's identity confidential because all information must be disclosed to management

D.

Lisa may promise the whistleblower full confidentiality, even if she knows her statement is untrue, because the lie is ultimately beneficial to her employer.

Question 2

Delta, an interviewer with little experience, asks Sigma, the respondent, the following question: "Were you aware that the signature was forged, and why didn't you tell anyone earlier?" This kind of question is called a_____________question

Options:

A.

Complex

B.

Controlled answer

C.

Free narrative

D.

Double-negative

Question 3

Fraud examination reports should be written with which of the following audiences in mind?

Options:

A.

The media

B.

Opposing legal counsel

C.

Investors and owners

D.

All of the above

Question 4

Barnes, a Certified Fraud Examiner (CFE). is using data analysis to identify anomalies that might indicate fraud in XYZ Company's accounts payable transactions. Which of the following is the MOST EFFECTIVE data analysis function that Barnes could use to look for potential fraud in accounts payable?

Options:

A.

Compare book and tax depreciation and indicate variances

B.

Identify paycheck amounts over a certain limit

C.

Review recurring monthly expenses and compare to posted/paid invoices

D.

All of the above

Question 5

Beta, a Certified Fraud Examiner (CFE). is conducting an admission-seeking interview of Delta, a fraud suspect. In establishing a rationalization. Beta says to Delta. "I know you didn't do this for yourself: it was for your family." This technique seeks to establish rationalization by:

Options:

A.

Reducing Delta's stress about possibly being fired

B.

Claiming Delta's action was for altruistic reasons

C.

Reducing Delta's perception of the legal seriousness of the matter

D.

Establishing that Delta's family was being treated unfairly

Question 6

Orlando is conducting a fraud examination regarding Fast Freight, a large publicly traded corporation, and wants to find the current officers and directors of the company. Which of the following would be the best source of information for this purpose?

Options:

A.

Commercial filings

B.

Real property records

C.

The company's corporate bylaws

D.

Regulatory securities records

Question 7

Beta, a Certified Fraud Examiner (CFE). is conducting an admission-seeking interview of Gamma, a fraud suspect. After Beta gave Gamma an appropriate rationalization for his conduct, Gamma continued his denials, giving various alibis. These alibis can usually be diffused by all of the following techniques EXCEPT:

Options:

A.

Discussing the testimony of witnesses

B.

Displaying physical evidence

C.

Discussing Gamma's prior deceptions

D.

Downplaying the strength of the evidence

Question 8

Louis, a Certified Fraud Examiner (CFE). is investigating a potential internal fraud case originating from a whistteblower tip about embezzlement. He discovers that the organization purportedly affected by the embezzlement recorded the tip in a memorandum. Which type of evidence would the memorandum be considered?

Options:

A.

Testimonial evidence

B.

Incriminating evidence

C.

Documentary evidence

D.

Verbal evidence

Question 9

Tony, a fraud examiner, believes that vendors might be submitting multiple invoices for the same sales with the hope that they will be paid more than once. He wants to ensure that no two invoices in the system have the same number. Which of the Mowing data analysis functions would be most useful for this test?

Options:

A.

Duplicate search

B.

Benford's Law analysis

C.

Correlation analysis

D.

Linear regression

Question 10

Which of the following is a measure that can help avoid alerting suspected perpetrators who are under investigation?

Options:

A.

Terminate the suspected employee.

B.

Notify everyone in the affected department

C.

Delay taking any action.

D.

Inform only those who need to know.

Question 11

Which of the following is NOT one of the main limitations of conducting a search for public records using online databases?

Options:

A.

Online records companies are difficult to find.

B.

Fraud examiners must validate the accuracy of the records obtained online

C.

The online record might only be a brief abstract of the original.

D.

Fraud examiners often must search for public records in multiple jurisdictions.

Question 12

Which of the following is NOT an advantage to using link analysis in a fraud investigation?

Options:

A.

Link analysis visually displays financial ratio analysis

B.

Link analysis is an affective tool to demonstrate complex networks

C.

Link analysis helps identify indirect relationships with several degrees of separation.

D.

Link analysis allows the investigator to discover patterns in data.

Question 13

Which of the following data is the MOST DIFFICULT to recover during a digital forensic examination?

Options:

A.

Time and date information about files

B.

Websites visited

C.

Files that have been overwritten

D.

Communications sent via instant messenger

Question 14

Which of the following is the MOST ACCURATE statement regarding the analysis phase in digital forensic investigations?

Options:

A.

When analyzing data for evidence, fraud examiners should look for exculpatory evidence But not inculpatory evidence

B.

During the analysis phase, it is best to use just one forensic tool for identifying, extracting, and collecting digital evidence

C.

The primary concern when analyzing digital evidence is to maintain the integrity of the data at all times

D.

The analysis phase of digital forensic investigations should not commence unless it is venfied that the suspect devices do not contain relevant data

Question 15

Nathaniel, a Certified Fraud Examiner (CFE). is investigating an alleged inventory theft scheme. While interviewing a subject, he asks, "When were you promoted to manager of the department?" This can BEST be described as a(n):

Options:

A.

Leading question

B.

Open question

C.

Complex question

D.

Closed question

Question 16

Which of the following types of files is the most difficult to recover during a digital forensic examination?

Options:

A.

Overwritten files

B.

Deleted until

C.

Deleted link (shortcut) files

D.

Hidden files

Question 17

Which of the following is a recommended strategy when conducting admission-seeking interviews?

Options:

A.

Increase sympathy while downplaying implications of wrongdoing.

B.

Ensure that accusations are made in the presence of a third party to avoid potential liability

C.

Emphasize a lack of morality in the subject's actions to induce them into confessing.

D.

Use time constraints as a means to pressure the subject into making a confession.

Question 18

Vishal, a Certified Fraud Examiner (CFE). has just initiated an interview with Steve, a fraud suspect. After a short introduction. Vishal jokes about the fact that he and Steve are wearing the same tie and then proceeds to ask Steve about the previous night's major sporting event Vishal is attempting to

Options:

A.

Establish the interview theme

B.

Condition the witness.

C.

Establish rapport

D.

Exhibit passive listening.

Question 19

Martin, a fraud examiner, is conducting an interview of Stephanie, a fraud suspect. Although Stephanie heard all of the questions during the introductory part of the interview, she began asking Martin to repeat almost every question when they became more focused If Stephanie is being deceptive, which of the choices below is MOST LIKELY the cause of Stephanie's behavior?

Options:

A.

Stephanie is testing Martin to determine whether he is able to ask consistent questions

B.

Stephanie is trying to make sure she understands the question so that she will not make a misstatement.

C.

Stephanie is delaying the answer so that she has more time to think of what to say.

D.

Stephanie is having trouble recalling the events or details related to Martin's questions.

Question 20

Pedro, a Certified Fraud Examiner (CFE). is conducting an admission-seeking interview of Manuel, a fraud suspect. After Pedro diffused Manuel's alibis. Manuel became withdrawn and stowty began to slouch m his chair, bowing his head and beginning to cry. What should Pedro do now?

Options:

A.

Leave the room for a short lime

B.

Ask Manuel to sit up straight

C.

Demand that Manuel stop crying.

D.

Present an alternative question.

Question 21

Which of the following statements about how fraud examiners should approach fraud examinations is FALSE?

Options:

A.

In most examinations, fraud examiners should start interviewing the least involved candidates and proceed toward those who are potentially more involved.

B.

When conducting fraud examinations, fraud examiners should start with specific details and move toward more general information.

C.

When conducting fraud examinations, fraud examiners should adhere to the fraud theory approach.

D.

When conducting fraud examinations, fraud examiners should begin with general information that is known and then move to the more specific details.

Question 22

Which of the following is considered a best practice for preserving the confidentiality of a fraud investigation?

Options:

A.

Suspend all employees involved in the investigation pending the investigation's outcome.

B.

Ensure that the investigation is conducted at the direction of, or under the supervision of. a government official

C.

Avoid using email or other electronic means to transmit confidential case information

D.

Implement a blanket policy prohibiting all employees from discussing anything related to employee investigations

Question 23

When planning for the interview phase of an investigation, which of the following steps should NOT be taken by the fraud examiner?

Options:

A.

Consider what the interview is intended to accomplish and state an objective.

B.

Review the case file to ensure that important information has not been overlooked

C.

Prepare a detailed list of questions to ask the subject during the interview.

D.

Ensure that the interview is held in a venue where the subject will feel Uncomfortable

Question 24

Which of the following is the MOST APPROPRIATE measure when seeking to avoid alerting suspected perpetrators who are under investigation?

Options:

A.

Terminate the suspected employee.

B.

Delay taking any action.

C.

Investigate during nonbusiness hours.

D.

Disclose the investigation to all employees

Question 25

Which of the following statements concerning a well-written fraud examination report is MOST ACCURATE?

Options:

A.

The report should convey all Information provided by witnesses

B.

Only relevant facts that support the fraud allegation should be included in the report

C.

The report writer should avoid technical jargon where possible

D.

Signed copies of the fraud examiner's interview notes should be used to report interview details