Free Practice Questions for ACFE CFE-Investigation Exam

“Due to the risks of illicit transactions, most jurisdictions require financial institutions to obtain information about the ownership and control of the foreign bank with which they maintain correspondent relationships”.

The manual explains:

“Link analysis is very effective for identifying indirect relationships… and is particularly useful when conducting a money laundering investigation because it can track the placement, layering, and integration of money” .

Therefore, statementA is false, making it the correct choice.

The2014 International Fraud Examiners Manualstates:

“The information contained on a wire transfer generally will include the following items:

• The amount of the transfer

• The date of the transfer

•The name of the sender or originator

• The routing number of the originating bank or financial institution.”

Therefore, the correct answer isC.

Pretexting is defined asimpersonating someone else or making false/misleading statements to obtain information. Many jurisdictions specifically prohibitpretexting against financial institutions, which includes pretending to be a customer to access their bank account information.

TheFraud Examiners Manualdefines double-negative questions as those containingtwo forms of negation in a single clause. They are confusing and “often suggest an answer opposite to the correct one.” The example given is almost identical to the question here:

“Didn’t you suspect that something wasn’t right?”.

Thus, Sylvia’s question is adouble-negative question, which should be avoided.

TheFraud Examiners Manuallistsspecific queries for accounts payable analysis, including:

“Review recurring monthly expenses and compare to posted/paid invoices.”.

While comparing book vs. tax depreciation applies toasset management(not A/P), and identifying paycheck anomalies applies topayroll(not A/P), the most effective A/P-specific test is the recurring expense comparison. Hence,Cis correct.

The2014 Fraud Examiners ManualandCFE Prepexplain:

“Closing questions seek to close the interview positively. In routine interviews, closing questions serve the following purposes: reconfirm facts, gather additional facts, and conclude the interview in a manner required to maintain goodwill.”

Thus, the correct answer isA.

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.

Digital forensics guidance stresses:

If the computer isoff,do not turn it on, because booting will alter files and timestamps.

If the computer isonand volatile data is needed (e.g., RAM), a formally trained examiner may collect it live. Otherwise, simply unplugging the system (hard shutdown) preserves volatile evidence better than a graceful shutdown.

Thus, if the evidence exists only in volatile data and the system is running, Nobles may collect it via the normal interface.

✅Answer: A. If Lucas's computer is running, Nobles may retrieve data… if the evidence exists only in volatile data