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ACFE CFE-Investigation exam are in great demand in today's world. The cost of this examination is $400.
The Certified Fraud Examiner - Investigation (CFE-Investigation) Certification Exam is an internationally recognized certification for professionals who specialize in investigating financial fraud. CFE-Investigation exam is offered by the Association of Certified Fraud Examiners (ACFE), which is the world's largest anti-fraud organization with over 85,000 members in more than 160 countries.
NEW QUESTION # 96
Which of the following is NOT true with regard to tracing the disposition of loan proceeds?
- A. Tracing loan proceeds can determine if hidden accounts were used for loan payments
- B. Tracing loan proceeds can uncover previously hidden assets
- C. Tracing loan proceeds can determine if the proceeds were deposited into hidden accounts.
- D. Tracing loan proceeds can identify the presence of internal control weaknesses.
Answer: D
Explanation:
The Fraud Examiners Manual and CFE Prep Guide explain that tracing loan proceeds is a key investigative tool, but its scope is limited. Specifically, it helps determine:
* if proceeds were deposited into hidden accounts,
* if hidden accounts were used for loan payments, and
* if loans were secured by hidden assets or unknown witnesses.
However, the manuals do not state that tracing loan proceeds can identify internal control weaknesses. That is a different aspect of fraud examination, often addressed through audit procedures or control assessments.
Thus, optionDis NOT true.
NEW QUESTION # 97
Jade, a Certrfied Fraud Examiner (CFE). is conducting an internal investigation in which an employee is suspected of stealing inventory and selling it through a possible shell company called Hidden Finds. LLC. When Jade tries to check Hidden Finds' website, a message appears that redirects customers to a web address that ends with onion To view the website's content. Jade will need to install a specialized web browser that enables her to access which of the following?
- A. The free web
- B. The deep archives
- C. The internet archives
- D. The dark web
Answer: C
NEW QUESTION # 98
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?
- A. Failing to observe cultural norms is not a concern if the interviewer is from a different country than the interviewee
- B. A fraud examiner should find out whether there are limitations on the use of information obtained during an interview
- C. A fraud examiner does not need to research cultural considerations such as personal space and eye contact.
- D. Consulting with legal counsel is only necessary when an investigation spans multiple junsdictions
Answer: B
Explanation:
The manual emphasizes that interviews-especially with subjects in other jurisdictions-poselegal and cultural considerations. Fraud examiners must considercultural norms (such as personal space, body language, and eye contact) and jurisdiction-specific lawsgoverning the use of information from interviews. In particular, some jurisdictions limit how interview information can later be used. Therefore, the most accurate statement is that the examiner should verify such limitations before proceeding.
NEW QUESTION # 99
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. "From my examination, it appears that the company's financial statements were not presented in accordance with generally accepted accounting principles "
- B. "The company's internal controls were wholly inadequate to prevent this type of violation and should be remediated at the earliest possible time."
- C. "The evidence shows that expenses in excess of $5 million were omitted from the company's financial statements "
- D. "Based on statements the suspect made to me. it is my assessment that the suspect has a dishonest disposition."
Answer: D
NEW QUESTION # 100
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
- A. Complex
- B. Double-negative
- C. Controlled answer
- D. Free narrative
Answer: A
Explanation:
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 itcomplex.
NEW QUESTION # 101
Which of the following statements is MOST ACCURATE regarding covert operations?
- A. Most jurisdictions provide protections for investigators conducting covert operations that shield them from reputational, financial, and legal consequences.
- B. Fraud examiners should conduct coven operations only after attempting conventional methods of evidence-gathering
- C. Covert operations rarely prove beneficial to investigations even when planned properly.
- D. Mistakes in covert operations generally do not cause damage to their associated investigations
Answer: C
NEW QUESTION # 102
Christopher, a fraud examiner, is conducting an admission-seeking interview with Jennifer, an employee suspected of stealing cash. Which of the following is the LEAST EFFECTIVE phrasing for Christopher to use when posing an admission-seeking question to Jennifer?
- A. 'What did you do with the money?"
- B. "Why did you take the money?"
- C. "How much of the money do you have left?"
- D. "Did you steal the money?"
Answer: D
NEW QUESTION # 103
Leslie, a fraud examiner for ACME Corporation, suspects that a salesperson for another company has defrauded ACME. Leslie wants to obtain a copy of the suspect individual's credit report and personal data from a third-party information broker If Leslie works in a jurisdiction that regulates the distribution of personal credit information, she generally can obtain the information if she has the consent of the individual.
- A. True
- B. False
Answer: A
Explanation:
"In jurisdictions that regulate credit information and personal data, a fraud examiner will generally need a legally acceptable reason for accessing such information from third parties... some common circumstances include when: the individual has given consent".
Thus, with the individual's consent, Leslie could obtain the report.
NEW QUESTION # 104
Cynthia is preparing to conduct a covert investigation. Prior to conducting surveillance of her subject, she creates a memorandum outlining the basis for her operation Which of the following pieces of information should she include in her memorandum?
- A. Her first impression regarding the subject's culpability
- B. The name of the subject she will be observing
- C. All of the above
- D. The identities of any confidential sources to be used in the operation
Answer: B
Explanation:
Before conducting surveillance, a memorandum should document thebasis for the covert operation, including:
(1) the information the operation is based on, (2) expected information to be gained, (3)identities of suspects (subjects) if known, and (4) operatives under the examiner's control. Confidential sources should not be identified by name but referred to symbolically.
NEW QUESTION # 105
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?
- A. Compare book and tax depreciation and indicate variances
- B. All of the above
- C. Identify paycheck amounts over a certain limit
- D. Review recurring monthly expenses and compare to posted/paid invoices
Answer: D
NEW QUESTION # 106
Eric, a Certified Fraud Examiner (CFE) is conducing an admission-seeking interview with Sean, a fraud suspect Sean is seated across the table from Eric. The door is closed but not locked and there are no windows or wall hangings in the room According to admission seeking interview best practices, what change should Eric make to the interview environment to increase that chances of the interview's success?
- A. Remove the table from the room to prevent physical and psychological barriers
- B. Open the door so that Sean feels tree to leave at any time
- C. Move the interview to a room with a window so that Sean feels more comfortable.
- D. Lock the door to ensure the interview is not interrupted
Answer: B
NEW QUESTION # 107
Tar
a. a Certified Fraud Examiner (CFE). is searching social media sites for evidence in a fraud investigation. Which of the following is the MOST ACCURATE statement regarding what Tara should do when mining social media sites for evidence of fraud?
- A. Tara should conduct a forensic shutdown of the computer to preserve the metadata m the social networking sites.
- B. Tara should preserve the information from the sites so that it can be established as authentic if used in court.
- C. Tara should preserve the metadata by printing out the web pages of each of the postings.
- D. Tara should preserve the information by saving the links of the postings as bookmarks in her browser.
Answer: C
NEW QUESTION # 108
Eugene is conducting an admission-seeking interview of a suspect. During the interview the suspect frequently looks away from Eugene while responding to questions. Eugene can safely conclude that the suspect Is dishonest due to his failure to maintain eye contact.
- A. True
- B. False
Answer: B
NEW QUESTION # 109
Which of the following is NOT a step a fraud examiner must take before seizing evidence in a digital forensic investigation?
- A. Ensure that only trained professionals employ any software used in a forensic capacity
- B. Obtain and become familiar with any legal orders that apply to the investigation
- C. Determine whether there are privacy issues related to the item(s) to be searched.
- D. Assemble an investigation team comprised only of outside digital forensic experts
Answer: D
Explanation:
The Fraud Examiners Manual lists required steps before seizing evidence:
* Obtain legal authority.
* Review privacy issues.
* Ensure software/hardware are validated.
* Document surroundings, inspect for traps, image drives, etc.
There is no requirement to assemble a team exclusively of outside experts.
Before seizing evidence in a digital forensic investigation, the 2014 International Fraud Examiners Manual outlines several critical steps:
* Obtain legal authority / review orders:
"Before obtaining evidence, ensure that there is legal authority to seize evidence and review the data associated with the evidence. This might require obtaining a warrant in a criminal matter or ensuring that internal policies authorise seizure for an internal investigation."
* Determine privacy issues:
"Before the fraud examiner can seize evidence, he must take certain steps to help ensure that the evidence will be admissible: He must determine whether there are any privacy interests in the item(s) to be searched... In every case where it becomes necessary to seize a computer or other device capable of storing digital evidence, the investigator should consult with legal counsel."
* Use only trained professionals/software:
"It is important to allow a trained examiner to conduct a proper seizure and examination of digital evidence to help ensure that the information can be used in a legal proceeding."
# These are all valid required steps.
In contrast, the idea that the team must be composed only of outside digital forensic experts is NOT a required step. The Manual stresses flexibility in team composition:
"Some organisations have their own in-house personnel... while others might prefer the use of an outside examiner. Sometimes retrieving digital data is as easy as searching the target computer's hard drive, but other times retrieval requires a thorough knowledge of computers." Thus, requiring only outside experts is not a standard step, since investigations may use internal, external, or a mix of specialists depending on the situation.
NEW QUESTION # 110
Which of the following is a measure that can help avoid alerting suspected perpetrators who are under investigation?
- A. Delay taking any action.
- B. Notify everyone in the affected department
- C. Inform only those who need to know.
- D. Terminate the suspected employee.
Answer: C
Explanation:
A key principle in fraud examinations is confidentiality. Fraud examiners must avoid tipping off the suspect, which could lead to destruction of evidence or flight. Measures include limiting discussions, informing only those with a legitimate need-to-know, and investigating discreetly.
NEW QUESTION # 111
Which of the following is a unique challenge of cloud forensics that is not encountered in traditional forensic practices?
- A. Lack of trust from cloud providers
- B. Lack of relevant data
- C. Lack of corroborating evidence
- D. Lack of data control
Answer: D
NEW QUESTION # 112
Which of the following is NOT one of the main limitations of conducting a search for public records using online databases?
- A. Fraud examiners often must search for public records in multiple jurisdictions.
- B. The online record might only be a brief abstract of the original.
- C. Online records companies are difficult to find.
- D. Fraud examiners must validate the accuracy of the records obtained online
Answer: C
NEW QUESTION # 113
During an interview with Alice, a suspect in an embezzlement case, the interviewer observes several signs of stress in Alice's behavior, such as shifting around in her chair, exhibiting shallow breathing, and occasionally stuttering during her replies. The interviewer should conclude that these symptoms are caused by deception.
- A. True
- B. False
Answer: B
Explanation:
Signs of stress (e.g., shallow breathing, stuttering, shifting posture) do not automatically equal deception. The Fraud Examiners Manual states:
"Signs of stress do not always mean a subject is lying. An honest subject might feel stress simply by being questioned. Conclusions must be based on clusters of behavior and corroborating evidence, not a single indicator".
NEW QUESTION # 114
Why do fraud examiners perform analysis on unstructured, or textual, data?
- A. To figure out whether someone is lying or telling the truth based on context duet
- B. To find an admission of fraud m an email or other communication that can be presented in court
- C. To categorize data to reveal patterns, sentiments, and relationships indicative of fraud
- D. To determine whether the footnotes to the financial statements are fairly presented
Answer: C
NEW QUESTION # 115
Which of the following sets of numbers could a fraud examiner most likely benefit from running a Benford's Law analysis on?
- A. Telephone numbers
- B. Employee identification numbers
- C. Bank account numbers
- D. Vendor invoice amounts
Answer: B
NEW QUESTION # 116
Which of the following would be most useful in determining when a specific document file was created?
- A. The document's metadata
- B. The system tog
- C. Internet activity data
- D. Operating system partition
Answer: B
NEW QUESTION # 117
Which of the following should be done to prepare an organization for a formal fraud investigation?
- A. Inform the subject that they are under investigation.
- B. Issue an organization-wide communication that notifies all employees about the investigation
- C. Prepare the managers of the employees who will be involved in the investigation
- D. Notify all managers about the investigation, explaining why it is happening and who is involved.
Answer: C
Explanation:
"Before commencing a formal investigation (and especially before starting the evidence collection process), it might be necessary to prepare the subject organisation... such as preparing the managers of the employees who will be involved in the investigation, notifying key decision makers, and notifying the organisation's legal counsel".
It is not good practice to notify the entire workforce or inform the suspect.
NEW QUESTION # 118
All of the following are true with regard to textual analytics EXCEPT:
- A. Textual analytics provides the ability to uncover warning signs of potentially fraudulent employee behavior
- B. When conducting textual analysis, the fraud examiner should come up with a list of fraud keywords to search for.
- C. Textual analytics is used to reveal patterns, sentiments, and relationships indicative of fraud
- D. The purpose of textual analytics is to search for and find an admission of fraud that can be presented in court
Answer: D
NEW QUESTION # 119
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ACFE CFE-Investigation (Certified Fraud Examiner - Investigation) Exam is a professional certification exam designed to test the knowledge, skills, and abilities of individuals who want to become certified fraud examiners. CFEs are professionals who are trained to detect, prevent, and investigate fraud in various industries and organizations. The CFE-Investigation exam is one of the four exams offered by the Association of Certified Fraud Examiners (ACFE) and is designed to test the candidate's knowledge and understanding of the investigation process.
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