NYC ASSOCIATE FRAUD INVESTIGATOR EXAM |FREQUENTLY
TESTED QUESTIONS WITH VERIFIED AND WELL-DETAILED
ANSWERS | PLUS RATIONALES | 100% GUARANTEED PASS |2026
LATEST EXAM UPDATE
1. Fraud statistics come from all of the following sources EXCEPT:
a. Government agencies
b. Researchers
c. Insurance Companies
d. Victims
e. Fraud perpetrator -Correct ✔✔- Fraud perpetrator
2. In fraud prosecution cases, _______ matter consists of the underlying data and all corroborating
information available.
a. elementary
b. evidential
c. supplemental
d. remedial-Correct ✔✔- evidential
3. To be successful, plaintiffs in civil cases must prove their case by which of the following?
a. Preponderance of evidence.
b. Beyond a reasonable doubt.
c. To the standard of prima facie.
d. To a degree of reasonable mitigation.-Correct ✔✔- Preponderance of evidence.
4. Customer fraud includes all of the following EXCEPT:
a. Fraud perpetrated through collusion between buyers and vendors.
b. Deceive organization into giving them something they should not.
c. Do not pay for goods purchased.
1|Page
,d. Get something for nothing.-Correct ✔✔- Fraud perpetrated through collusion between buyers and
vendors.
5. Given below are the profit margins and fraud related losses of four economies. Which economy
will have to generate the maximum dollar amount of additional revenues to recover the loss to
aggregate income? Economy A 10% $225 million Economy B 10% $150 million Economy C 5% $100
million Economy D 2% $50 million:
a. Economy D
b. Economy A
c. Economy B
d. Economy C-Correct ✔✔- Economy D 2% $50 million
6. The Anti-Kickback Act of 1986 intends to prevent:
a. the giving or receiving of any thing of value by a subcontractor to a prime contractor in contracts.
b. bribery, by punishing perpetrators with up to 15 years in prison.
c. the custom of lobbyists to give gifts to influence laws regarding business transactions.
d. any scheme by a contractor to gain the business of a global entity.-Correct ✔✔- the giving or
receiving of any thing of value by a subcontractor to a prime contractor in contracts.
7. The burden of proof in a criminal case:
a. level is beyond a reasonable doubt.
b. level is the preponderance of evidence.
c. lies with the defendant.
d. is determined by the majority of the jury members.-Correct ✔✔- level is beyond a reasonable doubt.
8. Management fraud is often referred to as:
a. financial statement fraud.
b. employee fraud.
c. stockholder fraud.
d. investment fraud.-Correct ✔✔- financial statement fraud.
2|Page
,9. Which of the following frauds is usually the most expensive?
a. Vendor fraud
b. Customer fraud
c. Occupational fraud
d. Financial statement fraud-Correct ✔✔- Financial statement fraud
10. Generally applicants for CFE certification should have a minimum of a bachelor's degree or
equivalent from an institution of higher learning. Alternatively if applicants do not have a bachelor's
degree, they may substitute months of fraud-related professional experience for each year of
academic study.
a. 9
b. 24
c. 12
d. 18
e. 15-Correct ✔✔- 24
11. What is the most cost-effective way to minimize the cost of fraud?
a. Investigation
b. Prosecution
c. Prevention
d. Detection-Correct ✔✔- Prevention
12. How is the confidence element established in a Ponzi scheme?
a. By investing in prime bonds.
b. By paying returns to investors initially.
c. By returning money to all investors.
d. By issuing notarized certificates.-Correct ✔✔- By paying returns to investors initially.
13. The following are all elements of Title 26, U.S. Code Section 7201 EXCEPT:
a. not reporting bribe income may be grounds for being charged with tax evasion.
3|Page
, b. filing income tax that excludes income from fraud may be considered an improper tax filing.
c. bribes paid may be deducted as business expenses.
d. failure to report income from fraud may be grounds for being charged with tax evasion.-Correct ✔✔-
bribes paid may be deducted as business expenses.
14. A company was the victim of several frauds that totaled approximately $10 million in one year.
With a profit margin of 10 percent, and assuming that the company's product sold for $1,000 per
unit, how many additional units must the company sell to compensate for the fraud losses?
a. 10,000
b. 100 million
c. 100,000
d. 1 million-Correct ✔✔- 100,000
15. What is required to prove fraud, as opposed to negligence?
a. Preponderance of the evidence
b. Gross error
c. Intent
d. Confession from the perpetrator-Correct ✔✔- Intent
16. Perpetrators of some fraud schemes often target conspiracy theorists, promising access to the
secret" investments used by the Rothschilds or Saudi royalty and offer triple-digit returns. Such
schemes are best described as:
a. Affinity frauds.
b. Franchise frauds.
c. Prime bank schemes.
d. Ponzi schemes.-Correct ✔✔- Prime bank schemes.
17. Which of the following would NOT be acceptable as fraud-related experience to satisfy the
education requirements to apply for CFE certification?
a. paralegal for a prosecuting attorney
4|Page
TESTED QUESTIONS WITH VERIFIED AND WELL-DETAILED
ANSWERS | PLUS RATIONALES | 100% GUARANTEED PASS |2026
LATEST EXAM UPDATE
1. Fraud statistics come from all of the following sources EXCEPT:
a. Government agencies
b. Researchers
c. Insurance Companies
d. Victims
e. Fraud perpetrator -Correct ✔✔- Fraud perpetrator
2. In fraud prosecution cases, _______ matter consists of the underlying data and all corroborating
information available.
a. elementary
b. evidential
c. supplemental
d. remedial-Correct ✔✔- evidential
3. To be successful, plaintiffs in civil cases must prove their case by which of the following?
a. Preponderance of evidence.
b. Beyond a reasonable doubt.
c. To the standard of prima facie.
d. To a degree of reasonable mitigation.-Correct ✔✔- Preponderance of evidence.
4. Customer fraud includes all of the following EXCEPT:
a. Fraud perpetrated through collusion between buyers and vendors.
b. Deceive organization into giving them something they should not.
c. Do not pay for goods purchased.
1|Page
,d. Get something for nothing.-Correct ✔✔- Fraud perpetrated through collusion between buyers and
vendors.
5. Given below are the profit margins and fraud related losses of four economies. Which economy
will have to generate the maximum dollar amount of additional revenues to recover the loss to
aggregate income? Economy A 10% $225 million Economy B 10% $150 million Economy C 5% $100
million Economy D 2% $50 million:
a. Economy D
b. Economy A
c. Economy B
d. Economy C-Correct ✔✔- Economy D 2% $50 million
6. The Anti-Kickback Act of 1986 intends to prevent:
a. the giving or receiving of any thing of value by a subcontractor to a prime contractor in contracts.
b. bribery, by punishing perpetrators with up to 15 years in prison.
c. the custom of lobbyists to give gifts to influence laws regarding business transactions.
d. any scheme by a contractor to gain the business of a global entity.-Correct ✔✔- the giving or
receiving of any thing of value by a subcontractor to a prime contractor in contracts.
7. The burden of proof in a criminal case:
a. level is beyond a reasonable doubt.
b. level is the preponderance of evidence.
c. lies with the defendant.
d. is determined by the majority of the jury members.-Correct ✔✔- level is beyond a reasonable doubt.
8. Management fraud is often referred to as:
a. financial statement fraud.
b. employee fraud.
c. stockholder fraud.
d. investment fraud.-Correct ✔✔- financial statement fraud.
2|Page
,9. Which of the following frauds is usually the most expensive?
a. Vendor fraud
b. Customer fraud
c. Occupational fraud
d. Financial statement fraud-Correct ✔✔- Financial statement fraud
10. Generally applicants for CFE certification should have a minimum of a bachelor's degree or
equivalent from an institution of higher learning. Alternatively if applicants do not have a bachelor's
degree, they may substitute months of fraud-related professional experience for each year of
academic study.
a. 9
b. 24
c. 12
d. 18
e. 15-Correct ✔✔- 24
11. What is the most cost-effective way to minimize the cost of fraud?
a. Investigation
b. Prosecution
c. Prevention
d. Detection-Correct ✔✔- Prevention
12. How is the confidence element established in a Ponzi scheme?
a. By investing in prime bonds.
b. By paying returns to investors initially.
c. By returning money to all investors.
d. By issuing notarized certificates.-Correct ✔✔- By paying returns to investors initially.
13. The following are all elements of Title 26, U.S. Code Section 7201 EXCEPT:
a. not reporting bribe income may be grounds for being charged with tax evasion.
3|Page
, b. filing income tax that excludes income from fraud may be considered an improper tax filing.
c. bribes paid may be deducted as business expenses.
d. failure to report income from fraud may be grounds for being charged with tax evasion.-Correct ✔✔-
bribes paid may be deducted as business expenses.
14. A company was the victim of several frauds that totaled approximately $10 million in one year.
With a profit margin of 10 percent, and assuming that the company's product sold for $1,000 per
unit, how many additional units must the company sell to compensate for the fraud losses?
a. 10,000
b. 100 million
c. 100,000
d. 1 million-Correct ✔✔- 100,000
15. What is required to prove fraud, as opposed to negligence?
a. Preponderance of the evidence
b. Gross error
c. Intent
d. Confession from the perpetrator-Correct ✔✔- Intent
16. Perpetrators of some fraud schemes often target conspiracy theorists, promising access to the
secret" investments used by the Rothschilds or Saudi royalty and offer triple-digit returns. Such
schemes are best described as:
a. Affinity frauds.
b. Franchise frauds.
c. Prime bank schemes.
d. Ponzi schemes.-Correct ✔✔- Prime bank schemes.
17. Which of the following would NOT be acceptable as fraud-related experience to satisfy the
education requirements to apply for CFE certification?
a. paralegal for a prosecuting attorney
4|Page
