NYC Associate Fraud Investigator Exam verified with correct answers
and rationales instant 2026/2027 pdf
1. What is the primary objective of a fraud investigator?
A. To prove that every allegation is true
B. To establish facts objectively and determine whether evidence supports the allegation
C. To obtain a confession from the subject
D. To punish the subject immediately
Answer: B
Rationale: A fraud investigator should remain objective and gather sufficient reliable evidence
to determine what actually occurred. The investigator should not begin with the assumption that
the allegation is true.
2. An anonymous complaint alleges that an employee submitted false
reimbursement claims. What should the investigator do first?
A. Immediately terminate the employee
B. Ignore the complaint because the complainant is anonymous
C. Assess the allegation and determine whether sufficient information exists to initiate an
appropriate inquiry
D. Publicly identify the employee
Answer: C
Rationale: Anonymous complaints can contain legitimate information. The investigator should
assess credibility, specificity, jurisdiction, and available evidence before deciding how to
proceed.
3. Which principle is most important when conducting a fraud investigation?
A. Confirmation bias
B. Objectivity
C. Personal loyalty
D. Speed at all costs
Answer: B
,Rationale: Objectivity helps prevent investigators from selectively interpreting evidence to
support a predetermined conclusion.
4. An investigator discovers evidence that appears to contradict the original
allegation. What should the investigator do?
A. Remove the contradictory evidence from the case file
B. Document and evaluate the contradictory evidence objectively
C. Ignore it
D. Change the evidence
Answer: B
Rationale: Investigators must consider both inculpatory and exculpatory information.
Contradictory evidence should be documented and evaluated rather than concealed.
5. What is the purpose of maintaining a chain of custody?
A. To establish who possessed and handled evidence
B. To determine the investigator's salary
C. To identify witnesses' political affiliations
D. To replace evidence documentation
Answer: A
Rationale: A chain of custody documents the collection, transfer, storage, and handling of
evidence, helping demonstrate that the evidence was properly preserved and has not been
improperly altered.
6. Which information should generally be included in evidence documentation?
A. Date, time, location, description, collector, and relevant handling information
B. Investigator's personal opinions only
C. Rumors about the subject
D. Unverified social-media comments only
Answer: A
Rationale: Evidence records should contain sufficient information to identify the evidence and
establish when, where, and by whom it was collected and handled.
,7. An investigator receives an original financial document from a witness. What
is generally the best practice?
A. Alter the original to highlight important sections
B. Preserve the original and document how it was obtained
C. Destroy the original after making notes
D. Give it to an unrelated person
Answer: B
Rationale: Original evidence should be preserved in its received condition whenever possible.
Investigators should document its source and handling.
8. Which interview question is generally most appropriate at the beginning of a
witness interview?
A. "You knew the employee was committing fraud, didn't you?"
B. "Tell me what you know about the transactions in question."
C. "Why did you help commit the fraud?"
D. "How much money did you steal?"
Answer: B
Rationale: Open-ended questions encourage the witness to provide information in their own
words and reduce the risk of leading the witness.
9. During an interview, a witness gives an answer that appears inconsistent with
an earlier statement. What should the investigator do?
A. Immediately accuse the witness of lying
B. Ask neutral follow-up questions to clarify the discrepancy
C. End the interview immediately
D. Delete the earlier statement
Answer: B
Rationale: Discrepancies should be explored objectively. A neutral clarification question may
reveal whether the difference resulted from misunderstanding, memory, terminology, or
intentional deception.
, 10. Which behavior can help establish rapport during an investigative interview?
A. Active listening and professional respect
B. Threatening the witness
C. Constantly interrupting
D. Mocking the witness
Answer: A
Rationale: Professional rapport encourages cooperation and can improve the quality and
completeness of information obtained during an interview.
11. What is the difference between an interview and an interrogation?
A. An interview generally seeks information, while an interrogation is typically more accusatory
and focused on suspected wrongdoing
B. They are always identical
C. An interrogation never involves questions
D. An interview is always conducted after conviction
Answer: A
Rationale: Interviews are generally information-gathering encounters. Interrogations are more
focused on obtaining explanations or admissions regarding suspected misconduct and must
comply with applicable law and policy.
12. An investigator wants to establish whether a vendor invoice is fraudulent.
Which evidence would be particularly useful?
A. The invoice, purchase records, payment records, contract, and supporting documentation
B. The investigator's personal opinion
C. An unrelated newspaper article
D. A rumor from an unidentified person
Answer: A
Rationale: Comparing invoices with contracts, purchase orders, receiving records, payment
records, and other documentation can help establish whether goods or services were actually
provided and whether the billing was accurate.
and rationales instant 2026/2027 pdf
1. What is the primary objective of a fraud investigator?
A. To prove that every allegation is true
B. To establish facts objectively and determine whether evidence supports the allegation
C. To obtain a confession from the subject
D. To punish the subject immediately
Answer: B
Rationale: A fraud investigator should remain objective and gather sufficient reliable evidence
to determine what actually occurred. The investigator should not begin with the assumption that
the allegation is true.
2. An anonymous complaint alleges that an employee submitted false
reimbursement claims. What should the investigator do first?
A. Immediately terminate the employee
B. Ignore the complaint because the complainant is anonymous
C. Assess the allegation and determine whether sufficient information exists to initiate an
appropriate inquiry
D. Publicly identify the employee
Answer: C
Rationale: Anonymous complaints can contain legitimate information. The investigator should
assess credibility, specificity, jurisdiction, and available evidence before deciding how to
proceed.
3. Which principle is most important when conducting a fraud investigation?
A. Confirmation bias
B. Objectivity
C. Personal loyalty
D. Speed at all costs
Answer: B
,Rationale: Objectivity helps prevent investigators from selectively interpreting evidence to
support a predetermined conclusion.
4. An investigator discovers evidence that appears to contradict the original
allegation. What should the investigator do?
A. Remove the contradictory evidence from the case file
B. Document and evaluate the contradictory evidence objectively
C. Ignore it
D. Change the evidence
Answer: B
Rationale: Investigators must consider both inculpatory and exculpatory information.
Contradictory evidence should be documented and evaluated rather than concealed.
5. What is the purpose of maintaining a chain of custody?
A. To establish who possessed and handled evidence
B. To determine the investigator's salary
C. To identify witnesses' political affiliations
D. To replace evidence documentation
Answer: A
Rationale: A chain of custody documents the collection, transfer, storage, and handling of
evidence, helping demonstrate that the evidence was properly preserved and has not been
improperly altered.
6. Which information should generally be included in evidence documentation?
A. Date, time, location, description, collector, and relevant handling information
B. Investigator's personal opinions only
C. Rumors about the subject
D. Unverified social-media comments only
Answer: A
Rationale: Evidence records should contain sufficient information to identify the evidence and
establish when, where, and by whom it was collected and handled.
,7. An investigator receives an original financial document from a witness. What
is generally the best practice?
A. Alter the original to highlight important sections
B. Preserve the original and document how it was obtained
C. Destroy the original after making notes
D. Give it to an unrelated person
Answer: B
Rationale: Original evidence should be preserved in its received condition whenever possible.
Investigators should document its source and handling.
8. Which interview question is generally most appropriate at the beginning of a
witness interview?
A. "You knew the employee was committing fraud, didn't you?"
B. "Tell me what you know about the transactions in question."
C. "Why did you help commit the fraud?"
D. "How much money did you steal?"
Answer: B
Rationale: Open-ended questions encourage the witness to provide information in their own
words and reduce the risk of leading the witness.
9. During an interview, a witness gives an answer that appears inconsistent with
an earlier statement. What should the investigator do?
A. Immediately accuse the witness of lying
B. Ask neutral follow-up questions to clarify the discrepancy
C. End the interview immediately
D. Delete the earlier statement
Answer: B
Rationale: Discrepancies should be explored objectively. A neutral clarification question may
reveal whether the difference resulted from misunderstanding, memory, terminology, or
intentional deception.
, 10. Which behavior can help establish rapport during an investigative interview?
A. Active listening and professional respect
B. Threatening the witness
C. Constantly interrupting
D. Mocking the witness
Answer: A
Rationale: Professional rapport encourages cooperation and can improve the quality and
completeness of information obtained during an interview.
11. What is the difference between an interview and an interrogation?
A. An interview generally seeks information, while an interrogation is typically more accusatory
and focused on suspected wrongdoing
B. They are always identical
C. An interrogation never involves questions
D. An interview is always conducted after conviction
Answer: A
Rationale: Interviews are generally information-gathering encounters. Interrogations are more
focused on obtaining explanations or admissions regarding suspected misconduct and must
comply with applicable law and policy.
12. An investigator wants to establish whether a vendor invoice is fraudulent.
Which evidence would be particularly useful?
A. The invoice, purchase records, payment records, contract, and supporting documentation
B. The investigator's personal opinion
C. An unrelated newspaper article
D. A rumor from an unidentified person
Answer: A
Rationale: Comparing invoices with contracts, purchase orders, receiving records, payment
records, and other documentation can help establish whether goods or services were actually
provided and whether the billing was accurate.
