Free Practice Questions for ACFE CFE-Investigation Exam

TheFraud Examiners Manualstresses confidentiality:

“To preserve confidentiality, investigators should avoid transmitting confidential information by email or other electronic means whenever possible, as these are susceptible to interception or unauthorized access.”

Suspending employees or blanket bans on discussion are not best practices. Confidentiality is preserved primarily by secure communication and controlled access to information.

Detailed Explanation with Extracts= The Fraud Examiners Manual states:

“When reporting the results of a fraud examination, it is best to include copies (not originals) of important documents in the formal report”.

Originals should be safeguarded separately for evidence; reports should use copies.

Therefore, the statement is true.

The Fraud Examiners Manual states that admission-seeking interviews should avoid yes/no questions like“Did you steal the money?”because they encourage denials. Instead, the question should be phrased as if guilt has already been established. The Manual explicitly warns:

“The accusation should be made in the form of a statement; it should not be made in the form of a question… Avoid emotive words such as steal, fraud, and crime… Example:‘It is not so much a question of what you did, but why you did it.’”

Thus, the most effective admission-seeking phrasing is:“Why did you take the money?”because it presumes involvement and encourages explanation rather than denial.

When obtaining a verbal confession, the fraud examiner should secure details such as: admission of wrongdoing, number of instances, amount involved, dates, involvement of others, residual assets, and motive. However, itdoes not matter whether the suspect claims the conduct was an accident; that is not necessary to record.

The2014 International Fraud Examiners Manualprovides:

“Fraud examiners can use a correlation analysis to determine the relationships between different variables in raw data… For example, there should be a strong correlation between the independent and dependent variables because there is a direct relationship between them.Hotel costs should increase as the number of days travelled increases.”

CFE Prep – Investigationsechoes this:

“Using the correlation analysis function, fraud examiners can determine the relationships between different variables in the raw data. For example…Hotel costs should increase as the number of days travelled increases.”

Thus, the most useful analysis isCorrelation analysis.

“Distractions should be kept to a minimum. Ideally, there should be no photographs, windows, or other objects in the room. Chairs should be placed about four to six feet apart, and the accused should not be permitted to sit behind any physical barriers, such as chairs, tables, or desks” .

The door should be closed (but not locked), not open .

Tables or desks should not be between interviewer and suspect .

Thus, the correct adjustment is removing distractions (pictures/posters).

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.

TheFraud Examiners Manualstates:

“The primary concern when analysing digital evidence is to maintain the integrity of the data at all times. Fraud examiners must be careful with computer equipment because a careless investigator might inadvertently alter important evidence”.

Examiners must look for both inculpatory and exculpatory evidence.

TheFraud Examiners Manualnotes:

“Fraud examiners are often tasked with tracing illicit transactions… For example, a victim of fraud might want a tracing search to facilitate the recovery of criminal proceeds”.

“Electronic payment records can be valuable in tracing investigations… they can reveal, among other things,assets the subject has purchased”.

They can also reveal loans, real estate taxes, and business locations, but not directly whether Lottie is “skimming” funds.