Fraud Investigation Exam Prep | Complete Verified
Study Guide with 100% Correct Answers and
Rationales | Latest Edition 2026/2027 – Newest
Published Update!!
Question 1
Which of the following is not a category used in the fraud triangle plus inquiry
paradigm?
A. Theft investigative techniques
B. Concealment investigative techniques
C. Action investigative techniques
D. Conversion investigative techniques
Answer: C
Rationale: The fraud triangle plus inquiry paradigm includes theft, concealment,
and conversion investigative techniques. Action is not a recognized category.
Question 2
When beginning an investigation, it is important that fraud examiners use
techniques that will:
A. Not arouse suspicion
B. Identify the perpetrator
C. Determine the amount of the fraud
D. Identify when the fraud occurred
Answer: A
Rationale: The primary concern at the beginning of an investigation is to not
arouse suspicion, which could lead to destruction of evidence or flight of the
perpetrator.
Question 3
When conducting interviews during an investigation, which of the following words
should usually be avoided?
A. Investigation
EXAMSWIZARD 1
,B. Theft
C. Fraud
D. All of the above
Answer: D
Rationale: Words like investigation, theft, and fraud can make subjects defensive
and uncooperative. Neutral language should be used.
Question 4
When beginning a fraud investigation, which of the following methods is most
useful in identifying possible suspects?
A. Preparing an identification chart
B. Preparing a vulnerability chart
C. Preparing a surveillance log
D. Hiring a PI to tail the subject
Answer: B
Rationale: A vulnerability chart identifies weaknesses in internal controls and
helps narrow down possible suspects.
Question 5
Invigilation:
A. Is most commonly used when investigating crimes that involve taking of
physical assets
B. Can create tremendous amounts of documentary evidence
C. Provides evidence to help determine whether fraud has occurred
D. Is only used by law enforcement
Answer: C
Rationale: Invigilation involves monitoring individuals and processes to gather
evidence and determine if fraud is occurring.
Question 6
Which of the following is not a theft investigation method?
A. Invigilation
B. Honesty testing
C. Seizing and searching computers
D. Surveillance and covert operations
EXAMSWIZARD 2
,Answer: B
Rationale: Honesty testing is a pre-employment screening tool, not a theft
investigation method.
Question 7
When deciding whether or not to investigate, which of the following factors should
an organization consider?
A. Possible cost of the investigation
B. Perceived strength of the predication
C. Possible public exposure resulting because of the investigation
D. All of the above
Answer: D
Rationale: All factors—cost, strength of predication, and public exposure—should
be considered before launching an investigation.
Question 8
Surveillance, when properly performed, is always done:
A. Without the perpetrator's knowledge
B. During nonworking hours
C. Only by law enforcement agents
D. None of the above
Answer: A
Rationale: Effective surveillance is conducted covertly without the subject's
knowledge to obtain natural behavior.
Question 9
Which of the following is not included in a vulnerability chart?
A. Explanations of the fraud triangle in relation to suspects of fraud
B. Breakdowns in key internal controls that may have created fraud opportunities
C. Internal controls that a company plans to institute in the future
D. Analysis of who had opportunity to commit fraud
Answer: C
Rationale: Vulnerability charts focus on existing weaknesses, not future controls
that are not yet implemented.
EXAMSWIZARD 3
, Question 10
A vulnerability chart:
A. Forces investigators to explicitly consider all aspects of fraud
B. Shows the history of fraud in a company
C. Identifies weaknesses in every aspect of a company's internal control
D. Gives a detailed record of all the movements and activities of the suspect
Answer: A
Rationale: A vulnerability chart helps investigators systematically consider all
aspects of fraud and potential perpetrators.
Question 11
Fixed point, or stationary observations can be conducted by:
A. Certified fraud examiners
B. Company personnel
C. Private investigators
D. Anyone, if conducted properly
Answer: D
Rationale: Fixed point surveillance can be conducted by anyone as long as it is
done properly and legally.
Question 12
Surveillance logs should include all of the following except:
A. Time the observation began and ended
B. Cost of the surveillance equipment used
C. Movements and activities of the suspect
D. Distance the observation was from the scene
Answer: B
Rationale: The cost of equipment is not relevant to the surveillance log's
evidentiary value.
Question 13
Wiretapping, a form of electronic surveillance, can usually be legally used by:
A. Internal auditors
B. Controllers
C. CPAs
EXAMSWIZARD 4
Study Guide with 100% Correct Answers and
Rationales | Latest Edition 2026/2027 – Newest
Published Update!!
Question 1
Which of the following is not a category used in the fraud triangle plus inquiry
paradigm?
A. Theft investigative techniques
B. Concealment investigative techniques
C. Action investigative techniques
D. Conversion investigative techniques
Answer: C
Rationale: The fraud triangle plus inquiry paradigm includes theft, concealment,
and conversion investigative techniques. Action is not a recognized category.
Question 2
When beginning an investigation, it is important that fraud examiners use
techniques that will:
A. Not arouse suspicion
B. Identify the perpetrator
C. Determine the amount of the fraud
D. Identify when the fraud occurred
Answer: A
Rationale: The primary concern at the beginning of an investigation is to not
arouse suspicion, which could lead to destruction of evidence or flight of the
perpetrator.
Question 3
When conducting interviews during an investigation, which of the following words
should usually be avoided?
A. Investigation
EXAMSWIZARD 1
,B. Theft
C. Fraud
D. All of the above
Answer: D
Rationale: Words like investigation, theft, and fraud can make subjects defensive
and uncooperative. Neutral language should be used.
Question 4
When beginning a fraud investigation, which of the following methods is most
useful in identifying possible suspects?
A. Preparing an identification chart
B. Preparing a vulnerability chart
C. Preparing a surveillance log
D. Hiring a PI to tail the subject
Answer: B
Rationale: A vulnerability chart identifies weaknesses in internal controls and
helps narrow down possible suspects.
Question 5
Invigilation:
A. Is most commonly used when investigating crimes that involve taking of
physical assets
B. Can create tremendous amounts of documentary evidence
C. Provides evidence to help determine whether fraud has occurred
D. Is only used by law enforcement
Answer: C
Rationale: Invigilation involves monitoring individuals and processes to gather
evidence and determine if fraud is occurring.
Question 6
Which of the following is not a theft investigation method?
A. Invigilation
B. Honesty testing
C. Seizing and searching computers
D. Surveillance and covert operations
EXAMSWIZARD 2
,Answer: B
Rationale: Honesty testing is a pre-employment screening tool, not a theft
investigation method.
Question 7
When deciding whether or not to investigate, which of the following factors should
an organization consider?
A. Possible cost of the investigation
B. Perceived strength of the predication
C. Possible public exposure resulting because of the investigation
D. All of the above
Answer: D
Rationale: All factors—cost, strength of predication, and public exposure—should
be considered before launching an investigation.
Question 8
Surveillance, when properly performed, is always done:
A. Without the perpetrator's knowledge
B. During nonworking hours
C. Only by law enforcement agents
D. None of the above
Answer: A
Rationale: Effective surveillance is conducted covertly without the subject's
knowledge to obtain natural behavior.
Question 9
Which of the following is not included in a vulnerability chart?
A. Explanations of the fraud triangle in relation to suspects of fraud
B. Breakdowns in key internal controls that may have created fraud opportunities
C. Internal controls that a company plans to institute in the future
D. Analysis of who had opportunity to commit fraud
Answer: C
Rationale: Vulnerability charts focus on existing weaknesses, not future controls
that are not yet implemented.
EXAMSWIZARD 3
, Question 10
A vulnerability chart:
A. Forces investigators to explicitly consider all aspects of fraud
B. Shows the history of fraud in a company
C. Identifies weaknesses in every aspect of a company's internal control
D. Gives a detailed record of all the movements and activities of the suspect
Answer: A
Rationale: A vulnerability chart helps investigators systematically consider all
aspects of fraud and potential perpetrators.
Question 11
Fixed point, or stationary observations can be conducted by:
A. Certified fraud examiners
B. Company personnel
C. Private investigators
D. Anyone, if conducted properly
Answer: D
Rationale: Fixed point surveillance can be conducted by anyone as long as it is
done properly and legally.
Question 12
Surveillance logs should include all of the following except:
A. Time the observation began and ended
B. Cost of the surveillance equipment used
C. Movements and activities of the suspect
D. Distance the observation was from the scene
Answer: B
Rationale: The cost of equipment is not relevant to the surveillance log's
evidentiary value.
Question 13
Wiretapping, a form of electronic surveillance, can usually be legally used by:
A. Internal auditors
B. Controllers
C. CPAs
EXAMSWIZARD 4
