NYC Associate Fraud Investigator Exam |
Latest Update | 200 Questions and Verified
Answers | NYC DOI Civil Service Test Prep |
A+ Graded
Question 1
How would you investigate suspected healthcare billing fraud?
Correct Answer
I would review billing records, appointment schedules, patient files, and interview
patients to verify services provided.
Question 2
Why shouldn't you assume fraud immediately?
Correct Answer
Unusual transactions may result from errors, weak controls, or legitimate reasons;
evidence should guide conclusions.
Question 3
What is one of the most important accounting records to look at for fraud?
Correct Answer
General Ledger.
Question 4
When should the subject be interviewed?
Correct Answer
After reviewing documents and corroborating facts.
Page 1 of 97
,Question 5
What is Horizontal analysis?
Correct Answer
Compare the same account over multiple periods.
Page 2 of 97
,Question 6
What kinds of fraud are associated with procurement and contract fraud?
Correct Answer
Bid rigging, kickbacks, bribery, false invoices.
Question 1: In the context of New York City Department of Investigation (DOI)
protocols, which primary responsibility falls to an Associate Fraud Investigator
when initially assessing a complaint alleging improper vendor billing on a city
contract?
A. Immediately suspending all payments to the vendor pending full audit
B. Conducting a preliminary review of available documentation and determining
whether sufficient indicators exist to warrant a formal investigation
C. Referring the matter directly to the New York City Comptroller without internal
analysis
D. Issuing a public statement summarizing the allegations to deter further
misconduct
CORRECT ANSWER: B. Conducting a preliminary review of available
documentation and determining whether sufficient indicators exist to warrant
a formal investigation
Rationale: Associate Fraud Investigators must first evaluate the credibility and
substance of allegations through available records before escalating resources.
Premature suspension or public disclosure risks compromising the investigation and
violating due process standards applied by the DOI.
Question 2: Under New York City Charter provisions governing the
Department of Investigation, what is the most accurate description of the
DOI’s authority regarding city employees suspected of fraud?
A. The DOI may only recommend disciplinary action and has no power to compel
testimony
B. The DOI possesses subpoena power and the authority to examine witnesses
under oath in furtherance of its investigations
C. The DOI must obtain prior judicial approval for every interview of a city employee
D. The DOI’s role is limited to coordinating with the District Attorney and cannot
initiate its own inquiries
CORRECT ANSWER: B. The DOI possesses subpoena power and the authority to
examine witnesses under oath in furtherance of its investigations
Rationale: The New York City Charter grants the Commissioner of Investigation
broad authority, including the power to subpoena witnesses and documents and to
take sworn testimony, enabling independent and effective fraud inquiries.
Page 3 of 97
, Question 3: When analyzing financial records for indicators of procurement
fraud, which pattern most strongly suggests possible bid-rigging among
competing vendors?
A. Consistently low bid prices across all solicitations
B. Rotation of winning bids among a small group of vendors combined with
unusually high pricing on subsequent contracts
C. Frequent use of electronic bidding portals
D. Submission of bids well before the stated deadline
CORRECT ANSWER: B. Rotation of winning bids among a small group of
vendors combined with unusually high pricing on subsequent contracts
Rationale: Bid rotation and elevated post-award pricing are classic red flags of
collusive bidding schemes in which vendors collude to allocate contracts and inflate
costs at the city’s expense.
Question 4: An Associate Fraud Investigator discovers that a city employee has
approved invoices for services never rendered. Which element is essential to
establishing a potential criminal case of official misconduct or fraud?
A. Proof that the employee personally benefited financially from the approvals
B. Evidence that the employee knowingly approved false claims with intent to
defraud the city
C. Confirmation that the vendor was previously debarred
D. Demonstration that the amount involved exceeded $100,000
CORRECT ANSWER: B. Evidence that the employee knowingly approved false
claims with intent to defraud the city
Rationale: Criminal liability for fraud or official misconduct requires proof of
knowledge and intent. Mere negligence or error, without knowing approval of false
claims, typically supports administrative rather than criminal action.
Question 5: In conducting an interview of a subject employee during a DOI
fraud investigation, which practice best preserves the integrity of the process
and the admissibility of statements?
A. Recording the interview without the employee’s knowledge to capture candid
responses
B. Advising the employee of the nature of the inquiry, allowing representation if
requested, and accurately documenting the interview
C. Confronting the employee with all evidence at the outset to induce a confession
D. Conducting the interview solely by telephone to minimize disruption
CORRECT ANSWER: B. Advising the employee of the nature of the inquiry,
allowing representation if requested, and accurately documenting the
Page 4 of 97
Latest Update | 200 Questions and Verified
Answers | NYC DOI Civil Service Test Prep |
A+ Graded
Question 1
How would you investigate suspected healthcare billing fraud?
Correct Answer
I would review billing records, appointment schedules, patient files, and interview
patients to verify services provided.
Question 2
Why shouldn't you assume fraud immediately?
Correct Answer
Unusual transactions may result from errors, weak controls, or legitimate reasons;
evidence should guide conclusions.
Question 3
What is one of the most important accounting records to look at for fraud?
Correct Answer
General Ledger.
Question 4
When should the subject be interviewed?
Correct Answer
After reviewing documents and corroborating facts.
Page 1 of 97
,Question 5
What is Horizontal analysis?
Correct Answer
Compare the same account over multiple periods.
Page 2 of 97
,Question 6
What kinds of fraud are associated with procurement and contract fraud?
Correct Answer
Bid rigging, kickbacks, bribery, false invoices.
Question 1: In the context of New York City Department of Investigation (DOI)
protocols, which primary responsibility falls to an Associate Fraud Investigator
when initially assessing a complaint alleging improper vendor billing on a city
contract?
A. Immediately suspending all payments to the vendor pending full audit
B. Conducting a preliminary review of available documentation and determining
whether sufficient indicators exist to warrant a formal investigation
C. Referring the matter directly to the New York City Comptroller without internal
analysis
D. Issuing a public statement summarizing the allegations to deter further
misconduct
CORRECT ANSWER: B. Conducting a preliminary review of available
documentation and determining whether sufficient indicators exist to warrant
a formal investigation
Rationale: Associate Fraud Investigators must first evaluate the credibility and
substance of allegations through available records before escalating resources.
Premature suspension or public disclosure risks compromising the investigation and
violating due process standards applied by the DOI.
Question 2: Under New York City Charter provisions governing the
Department of Investigation, what is the most accurate description of the
DOI’s authority regarding city employees suspected of fraud?
A. The DOI may only recommend disciplinary action and has no power to compel
testimony
B. The DOI possesses subpoena power and the authority to examine witnesses
under oath in furtherance of its investigations
C. The DOI must obtain prior judicial approval for every interview of a city employee
D. The DOI’s role is limited to coordinating with the District Attorney and cannot
initiate its own inquiries
CORRECT ANSWER: B. The DOI possesses subpoena power and the authority to
examine witnesses under oath in furtherance of its investigations
Rationale: The New York City Charter grants the Commissioner of Investigation
broad authority, including the power to subpoena witnesses and documents and to
take sworn testimony, enabling independent and effective fraud inquiries.
Page 3 of 97
, Question 3: When analyzing financial records for indicators of procurement
fraud, which pattern most strongly suggests possible bid-rigging among
competing vendors?
A. Consistently low bid prices across all solicitations
B. Rotation of winning bids among a small group of vendors combined with
unusually high pricing on subsequent contracts
C. Frequent use of electronic bidding portals
D. Submission of bids well before the stated deadline
CORRECT ANSWER: B. Rotation of winning bids among a small group of
vendors combined with unusually high pricing on subsequent contracts
Rationale: Bid rotation and elevated post-award pricing are classic red flags of
collusive bidding schemes in which vendors collude to allocate contracts and inflate
costs at the city’s expense.
Question 4: An Associate Fraud Investigator discovers that a city employee has
approved invoices for services never rendered. Which element is essential to
establishing a potential criminal case of official misconduct or fraud?
A. Proof that the employee personally benefited financially from the approvals
B. Evidence that the employee knowingly approved false claims with intent to
defraud the city
C. Confirmation that the vendor was previously debarred
D. Demonstration that the amount involved exceeded $100,000
CORRECT ANSWER: B. Evidence that the employee knowingly approved false
claims with intent to defraud the city
Rationale: Criminal liability for fraud or official misconduct requires proof of
knowledge and intent. Mere negligence or error, without knowing approval of false
claims, typically supports administrative rather than criminal action.
Question 5: In conducting an interview of a subject employee during a DOI
fraud investigation, which practice best preserves the integrity of the process
and the admissibility of statements?
A. Recording the interview without the employee’s knowledge to capture candid
responses
B. Advising the employee of the nature of the inquiry, allowing representation if
requested, and accurately documenting the interview
C. Confronting the employee with all evidence at the outset to induce a confession
D. Conducting the interview solely by telephone to minimize disruption
CORRECT ANSWER: B. Advising the employee of the nature of the inquiry,
allowing representation if requested, and accurately documenting the
Page 4 of 97
