ACFE CFE-Investigation Exam Questions Instant Access

Question 1

Gunn, a Certified Fraud Examiner (CFE). was hired to trace Kelly's financial transactions. During his investigation. Gunn obtains records of electronic payments that Kelly made during the past three years. Which of the following are these records MOST LIKELY to reveal?

AIf Kelly has been skimming funds

BThe cities and countries in which Kelly conducts business

CThe division and distribution of Kelly's assets

DThe market value of any real property Kelly owns

Answer : B

''The locations of the subject's residences and businesses (e.g., through analysing the payments of utility bills)... The cities and countries in which the subject conducts business (e.g., through analysing the payments for carrier services to deliver packages)''6:2014 International Fraud Examiners Manual.pdfL57-L77.

They do not directly prove skimming or show market values of real estate.

Question 2

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 Manuel became withdrawn and stowty began to slouch m his chair, bowing his head and beginning to cry.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?

ALeave the room for a short lime

BAsk Manuel to sit up straight

CDemand that Manuel stop crying.

DPresent an alternative question.

Answer : D

After alibis are diffused, suspects may become quiet, withdrawn, or even cry. This often indicates they are considering confession. At this point, the interviewer should present an alternative question, forcing a choice between two answers that both imply guilt, thus leading toward a benchmark admission.

Question 3

Which of the following statements would be IMPROPER if included in the fraud examination report of a Certified Fraud Examiner (CFE who is also qualified as an accounting expert?

A'The company's internal controls were wholly inadequate to prevent this type of violation and should be remediated at the earliest possible time.'

B'The evidence shows that expenses in excess of $5 million were omitted from the company's financial statements '

C'Based on statements the suspect made to me. it is my assessment that the suspect has a dishonest disposition.'

D'From my examination, it appears that the company's financial statements were not presented in accordance with generally accepted accounting principles '

Answer : C

Fraud examiners must not opine on guilt, innocence, intent, or disposition. Reports should focus on facts and expert conclusions within their field. The Manual stresses:

''The fraud examiner should refrain from expressing opinions as to the guilt or innocence of any person or entity. Such conclusions are reserved for the trier of fact'' (Fraud Examiners Manual, Reporting section).

Options A, B, and D relate to accounting and internal control assessments, which fall within an accounting expert's scope. Only C is improper because it speculates about the suspect's character or intent, which is outside the CFE's role.

Question 4

Which of the following would be MOST USEFUL m determining who created a specrfic document file?

AOperating system partition

BInternet activity data

CThe system log

DThe document's metadata

Answer : D

The CFE Prep -- Investigations explains:

''Metadata is a type of computer-generated data that can be helpful in a fraud investigation. Metadata information can help determine who wrote a document; who received, opened, copied, edited, moved, or printed the document; and when these events occurred'' .

Thus, metadata is the most useful for identifying who created a document.

Question 5

Which of the following is a factor that fraud examiners should consider when determining whether to dispose of evidence following the conclusion of a fraud examination?

AWhether the information was presented by a lay witness or an expert witness

BWhether the evidence is documentary or testimonial

CWhether the evidence is direct or circumstantial

DWhether the organization has a general document retention policy in place

Answer : D

The Fraud Examiners Manual notes:

''Management of an organisation should ensure that the organisation has a proper and effective document retention policy in place... An effective policy requires clear retention protocols... and should be immobilised due to a pending investigation or foreseeable litigation.''

Thus, the existence of a document retention policy is a critical factor in deciding how to dispose of evidence.

Question 6

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

AOverwritten files

BDeleted until

CDeleted link (shortcut) files

DHidden files

Answer : A

Both the Manual and CFE Prep guides emphasize that deleted files are recoverable until overwritten. Once overwritten, the original data cannot be retrieved:

''Deleted files are recoverable until they are overwritten because data is not erased... until overwritten. So, deleted files that have been overwritten generally are not recoverable.''

Other file types (deleted shortcuts, hidden files, etc.) can often be recovered, but overwritten files are lost permanently.

Question 7

Which of the following statements is MOST ACCURATE regarding how a fraud examiner should prepare for an interview with a subject from a different jurisdiction?

AFailing to observe cultural norms is not a concern if the interviewer is from a different country than the interviewee.

BConsulting with legal counsel is only necessary when an investigation spans multiple

CA fraud examiner should find out whether the interviewee can insist upon the presence of a legal representative

DA fraud examiner does not need to research cultural considerations such as appropriate greetings and eye contact.

Answer : C

When preparing to interview subjects across jurisdictions, fraud examiners must consider both legal rights and cultural differences. The Manual advises examiners to:

Research local laws governing the right to counsel during interviews.

Understand cultural norms (e.g., greetings, eye contact).Failing to observe these can damage credibility. Thus, it is most accurate that an examiner must determine whether the subject can legally insist on a lawyer's presence .

ACFE Certified Fraud Examiner - Investigation CFE-Investigation Exam Questions