NYC ASSOCIATE FRAUD INVESTIGATOR EXAM –
QUESTIONS AND ANSWERS
VERIFIED AND WELL DETAILED ANSWERS | PLUS
RATIONALES | GUARANTEED PASS | LATEST EXAM UPDATE
EXAM OVERVIEW & CORE DOMAINS
Official Exam Information:
• Exam Number: 4013 (Open Competitive) / 4510 (Promotion)
• Application Period: January 3–23, 2024
• Passing Score: 70% required
• Test Format: Computer-based multiple-choice testing
• Scoring: Multiple-choice test determines 85% of final score; seniority
determines remaining 15%
Core Domains Tested:
• Fraud Investigation Principles and Methodologies
• Evidence Collection, Preservation, and Documentation
• Interviewing Techniques and Investigative Procedures
• Financial Crimes, Fraud Schemes, and Detection Methods
• Ethics, Professional Standards, and Confidentiality
• Legal Compliance, Administrative Procedures, and Regulations
• Report Writing and Investigative Analysis
• Risk Assessment and Fraud Prevention Strategies
Qualifications Summary:
• High School Diploma + 5 years investigative experience (1 year
supervisory)
, • Associate Degree + 60 credits (12 in criminal justice/related) + 3
years experience
• Baccalaureate Degree + 2 years experience (1 year supervisory)
Special Requirements (Department of Finance Only): Peace Officer
status, U.S. citizenship, valid NY driver license, drug screening,
medical/psychological clearance
SECTION 1: FRAUD INVESTIGATION FUNDAMENTALS
(Questions 1-25)
1. Which of the following BEST defines fraud in the context of a fraud
investigator's work?
A) An honest mistake made during business operations
B) Intentional deception to secure unfair or unlawful gain
C) A disagreement over contract terms between two parties
D) A civil dispute over property boundaries
Rationale: Fraud involves deliberate deception with the intent to gain
something unlawfully. Honest mistakes or disputes are not considered fraud,
as fraud requires intent and knowledge of the deception .
2. What is the primary purpose of a fraud investigation?
A) To punish all individuals suspected of wrongdoing
B) To determine facts through systematic examination of evidence
,C) To eliminate all financial risks immediately
D) To replace internal management controls
Rationale: A fraud investigation focuses on gathering and analyzing facts to
establish what occurred and who may be responsible, rather than
punishment or risk elimination .
3. The primary role of a fraud investigator is to:
A) Prosecute suspects in court
B) Identify, analyze, and document fraudulent activity
C) Set company policy
D) Manage accounting operations
Rationale: Fraud investigators gather evidence and analyze cases to support
legal action or internal controls. They do not prosecute directly—that is the
role of prosecutors .
4. Which action should an investigator take first when receiving an
allegation of fraud?
A) Immediately confront the accused
B) Conduct a preliminary assessment to determine if the allegation has
merit
C) Notify the media
D) Destroy all related documents
Rationale: A preliminary assessment helps determine whether sufficient
evidence exists to justify a full investigation and prevents wasting resources
on unfounded allegations .
, 5. Which principle is essential when handling investigative evidence?
A) Sharing evidence widely for transparency
B) Altering evidence to improve clarity
C) Keeping evidence only in memory
D) Maintaining proper chain of custody
Rationale: Chain of custody documents who handled evidence and protects
its reliability. It ensures evidence is collected, preserved, and documented
properly, preventing tampering and ensuring admissibility .
6. Which of the following is an example of occupational fraud?
A) Credit card theft by a stranger
B) An employee embezzling company funds
C) Tax evasion by a corporation
D) Identity theft through phishing
Rationale: Occupational fraud occurs when employees misuse their position
to commit fraud against their employer. External crimes like credit card theft
or phishing are not occupational fraud .
7. A city employee claims 40 hours of overtime but surveillance shows
them at a movie theater for 6 of those hours. What is the best initial
step?
A) Confront the employee immediately
B) Write a final report
QUESTIONS AND ANSWERS
VERIFIED AND WELL DETAILED ANSWERS | PLUS
RATIONALES | GUARANTEED PASS | LATEST EXAM UPDATE
EXAM OVERVIEW & CORE DOMAINS
Official Exam Information:
• Exam Number: 4013 (Open Competitive) / 4510 (Promotion)
• Application Period: January 3–23, 2024
• Passing Score: 70% required
• Test Format: Computer-based multiple-choice testing
• Scoring: Multiple-choice test determines 85% of final score; seniority
determines remaining 15%
Core Domains Tested:
• Fraud Investigation Principles and Methodologies
• Evidence Collection, Preservation, and Documentation
• Interviewing Techniques and Investigative Procedures
• Financial Crimes, Fraud Schemes, and Detection Methods
• Ethics, Professional Standards, and Confidentiality
• Legal Compliance, Administrative Procedures, and Regulations
• Report Writing and Investigative Analysis
• Risk Assessment and Fraud Prevention Strategies
Qualifications Summary:
• High School Diploma + 5 years investigative experience (1 year
supervisory)
, • Associate Degree + 60 credits (12 in criminal justice/related) + 3
years experience
• Baccalaureate Degree + 2 years experience (1 year supervisory)
Special Requirements (Department of Finance Only): Peace Officer
status, U.S. citizenship, valid NY driver license, drug screening,
medical/psychological clearance
SECTION 1: FRAUD INVESTIGATION FUNDAMENTALS
(Questions 1-25)
1. Which of the following BEST defines fraud in the context of a fraud
investigator's work?
A) An honest mistake made during business operations
B) Intentional deception to secure unfair or unlawful gain
C) A disagreement over contract terms between two parties
D) A civil dispute over property boundaries
Rationale: Fraud involves deliberate deception with the intent to gain
something unlawfully. Honest mistakes or disputes are not considered fraud,
as fraud requires intent and knowledge of the deception .
2. What is the primary purpose of a fraud investigation?
A) To punish all individuals suspected of wrongdoing
B) To determine facts through systematic examination of evidence
,C) To eliminate all financial risks immediately
D) To replace internal management controls
Rationale: A fraud investigation focuses on gathering and analyzing facts to
establish what occurred and who may be responsible, rather than
punishment or risk elimination .
3. The primary role of a fraud investigator is to:
A) Prosecute suspects in court
B) Identify, analyze, and document fraudulent activity
C) Set company policy
D) Manage accounting operations
Rationale: Fraud investigators gather evidence and analyze cases to support
legal action or internal controls. They do not prosecute directly—that is the
role of prosecutors .
4. Which action should an investigator take first when receiving an
allegation of fraud?
A) Immediately confront the accused
B) Conduct a preliminary assessment to determine if the allegation has
merit
C) Notify the media
D) Destroy all related documents
Rationale: A preliminary assessment helps determine whether sufficient
evidence exists to justify a full investigation and prevents wasting resources
on unfounded allegations .
, 5. Which principle is essential when handling investigative evidence?
A) Sharing evidence widely for transparency
B) Altering evidence to improve clarity
C) Keeping evidence only in memory
D) Maintaining proper chain of custody
Rationale: Chain of custody documents who handled evidence and protects
its reliability. It ensures evidence is collected, preserved, and documented
properly, preventing tampering and ensuring admissibility .
6. Which of the following is an example of occupational fraud?
A) Credit card theft by a stranger
B) An employee embezzling company funds
C) Tax evasion by a corporation
D) Identity theft through phishing
Rationale: Occupational fraud occurs when employees misuse their position
to commit fraud against their employer. External crimes like credit card theft
or phishing are not occupational fraud .
7. A city employee claims 40 hours of overtime but surveillance shows
them at a movie theater for 6 of those hours. What is the best initial
step?
A) Confront the employee immediately
B) Write a final report
