Free CFE-Investigation: Certified Fraud Examiner - Investigation Exam Questions and Answers

An interviewer should primarily ask closed questions during the information phase of an interview.

• AA. True
• BB. False

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 Larsen'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?

• AA. Shane should email himself the links of the postings so that he can retrieve them later.
• BB. Shane should preserve the information from the social networking sites so that it can be established as authentic if used in court.
• CC. Shane should conduct a forensic shutdown of his computer to preserve the metadata in the social networking sites.
• DD. Shane should preserve the information by saving the links of the postings in his "bookmarks."

Which of the following usually is considered the most useful source of financial information available to fraud examiners in tracing a subject's assets?

• AA. Financial institution records
• BB. Service bills
• CC. Credit card statements
• DD. Paystubs

Lisa, a fraud examiner at a private company, receives an anonymous call from a potential whistleblower. The whistleblower is hesitant to reveal their identity but will do so if it can be kept fully confidential. Which of the following statements is most accurate?

• AA. Lisa should explain that she will try her best to keep the whistleblower's identity confidential
• BB. Lisa should state that she will not be able to keep the whistleblower's identity confidential because all information must be disclosed to management
• CC. Lisa may offer the whistleblower full confidentiality because they are not a suspect.
• DD. Lisa may promise the whistleblower full confidentiality even if she knows her statement is untrue, because the lie is ultimately beneficial to her employer.

When a fraud examiner is conducting an examination and is in the process of collecting documents, the fraud examiner should:

• AA. Wait until all documents have been collected before establishing a database
• BB. Organize all the documents obtained in chronological order
• CC. Avoid touching original documents any more than necessary
• DD. Make copies of originals and leave the originals where they were found

Talia has been hired by SBS Inc, to implement a new data analysis program to search for warning signs of potential fraud within the company. Which of the following steps should Talia conduct first to most effectively use data analysis techniques for such an initiative?

• AA. Build a profile of potential frauds.
• BB. Monitor the data.
• CC. Cleanse and normalize the data.
• DD. Identify the relevant data

Which of the following is NOT a common method that fraudsters use to hide their ill-gotten gains?

• AA. Prepaying a home mortgage
• BB. Transferring assets into another person's name
• CC. Purchasing a used vehicle
• DD. Purchasing a life insurance policy

Which of the following is the LEAST accurate statement about seizing a computer for examination?

• AA. When taking a computer for examination, if the computer is off, it should remain off when it is removed.
• BB. When seizing a computer that is running, it is acceptable to review the files contained on the machine prior to seizing it.
• CC. When seizing a computer for examination the seizing party should look around the area for passwords because many people leave passwords near their computers.
• DD. Before removing a computer system from a scene for further analysis, it is important to document the system's setup with photographs or diagrams

Which of the following data analysis functions is used to determine whether company policies are met by employee transactions such as verifying that traveling employees book their accommodations at approved hotels?

• AA. The Join function
• BB. The correlation analysis function
• CC. The compliance verification function
• DD. The gap testing function

Which of the following can constitute a bribe, even if the illicit payment is never actually made?

• AA. Offering a payment
• BB. Corruption in payment
• CC. kickback payment
• DD. Overbilling in payment