ACFE CFE-Investigation Exam Questions Instant Access

Question 1

Lmdsey, a Certified Fraud Examiner (CFE). has been retained to investigate allegations of bribery and kickbacks allegedly committed by a member of an organization's procurement department. Lindsey conducts an interview during which one of the accused's colleagues states that they overheard the accused discussing a free tnp received from one of the organization's vendors. Which type of evidence would the interviewee's statement be considered?

ADocumentary evidence

BTestimonial evidence

CVerbal evidence

DInconclusive evidence

Answer : B

The Fraud Examiners Manual defines:

''Testimonial evidence is that evidence which is presented in the form of witness statements, whether oral or written, offered in response to questions'' (Fraud Examiners Manual -- Evidence section).The colleague's statement overhearing a conversation is testimonial evidence.

Question 2

Antonio is the former boyfriend of Hannah, a fraud suspect. He approaches Ashley, a fraud examiner at Hannah's company, and offers to provide critical information about Hannah's fraud in exchange for full confidentiality. Which of the following is the MOST APPROPRIATE response for Ashley to make?

AAshley should explain that Antonio may have qualified confidentiality but that she cannot make any absolute assurances

BAshley should promise Antonio unqualified confidentiality over all information provided

CAshley should explain that all information must be disclosed to management so nothing Antonio says will be confidential

DAshley should promise Antonio that his identity will not become known.

Answer : A

The Fraud Examiners Manual stresses that fraud examiners must never promise unconditional confidentiality, because findings often must be disclosed to management, auditors, or authorities. They can only offer ''qualified confidentiality'' (best efforts to protect identity, but with necessary limits). Therefore, option A is the most appropriate response.

Question 3

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

AEstablish the interview theme

BCondition the witness.

CEstablish rapport

DExhibit passive listening.

Answer : C

''Introductory questions should be designed to establish rapport... the interviewer must establish some common ground with the respondent before he begins the fact-gathering portion of the interview. Interviewers usually establish rapport by spending a few minutes with the respondent in an informal dialogue''.

Thus, Vishal's small talk about ties and sports is rapport-building.

Question 4

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

AComplex

BControlled answer

CFree narrative

DDouble-negative

Answer : A

Complex questions:

''consist of a series of interrelated questions... too complicated to be easily understood, cover more than one subject, or require more than one answer''.

The question asked by Delta (''Were you aware that the signature was forged, and why didn't you tell anyone earlier?'') covers two issues, making it complex.

Question 5

Shane, a Certified Fraud Examiner (CFE). is investigating Larsen. who is active on various social networking sites. Shane wants to search and extract information from Larson's social media postings so that it can be used in court as evidence Which of the following is the MOST ACCURATE statement regarding what Shane should do when conducting a social media investigation of Larsen?

AShane should conduct a forensic shutdown of his computer to preserve the metadata in the social networking sites.

BShane should preserve the information from the social networking sites so that it can be established as authentic if used in court.

CShane should email himself the links of the postings so that he can retrieve them later.

DShane should preserve the information by saving the links of the postings in his 'bookmarks'

Answer : B

''Documentary evidence, including digital evidence, will not be admitted... unless it is established as authentic... fraud examiners must capture, download, and preserve any useful information as soon as they discover it, and memorialize each step of the collection process''.

Question 6

Which of the following statements concerning access to nonpublic records is MOST ACCURATE?

AOnce a criminal case is filed, all records obtained by the government are considered public records

BNonpublic records cannot be obtained by subpoena or legal order in a civil action

CIn most junsdictions. banks are allowed to turn over a suspect's account information directly to a fraud victim when there is adequate evidence of wrongdoing.

DThe government usually will not share nonpublic records with a fraud victim during an investigation into the underlying fraud.

Answer : D

''Even when a victim refers a fraud case for criminal prosecution, the government will usually not disclose the contents of nonpublic records with the victim during the investigation''.

Thus, option D is most accurate.

Question 7

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

AIncrease sympathy while downplaying implications of wrongdoing.

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

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

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

Answer : A

''The interviewer must not express disgust, outrage, or moral condemnation... the basic logic of obtaining confessions can be summed up as maximize sympathy and minimize the perception of moral wrongdoing''.

Sympathy creates an environment conducive to confession, while other options (third-party presence, emphasizing immorality, or pressuring with time) are explicitly discouraged.

ACFE Certified Fraud Examiner - Investigation CFE-Investigation Exam Questions