NYC ASSOCIATE FRAUD INVESTIGATOR 2026–2027 PRACTICE EXAM — PART 2 ADVANCED INVESTIGATION, SUPERVISION & ADMINISTRATIVE PRACTICE 300 ORIGINAL PRACTICE QUESTIONS & ANSWERS

NYC ASSOCIATE FRAUD INVESTIGATOR 2026–2027 PRACTICE EXAM — PART 2 ADVANCED INVESTIGATION, SUPERVISION & ADMINISTRATIVE PRACTICE 300 ORIGINAL PRACTICE QUESTIONS & ANSWERS Format Multiple-choice A–D Questions 300 Answers Correct option highlighted in red Coverage Investigation • Evidence • Interviews • Surveillance • Financial Analysis • Supervision • Administration • Eth Purpose Independent study and practice Important: This is an original practice/study document. It is not an official NYC Department of Citywide Administrative Services examination, leaked exam, or guarantee of actual test questions. The topic selection follows publicly available NYC Associate Fraud Investigator duties and published examination information. It is designed as a complementary Part 2 study resource. TABLE OF CONTENTS Section Questions 1. Advanced Investigative Techniques 1–40 2. Evidence, Documentation & Case Files 41–75 3. Interviews, Witnesses & Subjects 76–105 4. Surveillance & Field Operations 106–130 5. Fraud Schemes & Financial Analysis 131–170 6. Supervision & Work Planning 171–205 7. Administrative Tasks & Reports 206–235 8. Ethics, Confidentiality & EEO 236–265 9. Public Programs, Tax & Regulatory Fraud 266–285 10. Analytical Judgment & Scenario Practice 286–300 Official-source reminder: Current exam requirements, filing periods, eligibility, and procedures should be checked against NYC DCAS materials.  1. Advanced Investigative Techniques 1. An investigator receives an allegation with no supporting documents. A) Access records whenever convenient, regardless of authorization. B) Begin by assessing the allegation, identifying available leads, and developing a reasonable investigativeplan. C) Delay documenting the activity until the end of the investigation. D) Close the case immediately because the issue is difficult. Correct Answer: B) Begin by assessing the allegation, identifying available leads, and developing a reasonable investigative plan. Rationale: A sound investigation starts with triage and a documented plan rather than assuming the allegation is true. 2. Two records contain different dates for the same transaction. A) Compare the source records, determine which is authoritative, and document the discrepancy. B) Disclose all investigative information to anyone who asks. C) Use an assumption as though it were an established fact. D) Use government information for a private purpose. Correct Answer: A) Compare the source records, determine which is authoritative, and document the discrepancy. Rationale: Conflicting dates should be resolved through source verification and documented analysis. 3. A case contains information that is relevant but not yet corroborated. A) Use government information for a private purpose. B) Treat it as an investigative lead until independently corroborated. C) Disclose all investigative information to anyone who asks. D) Treat every discrepancy as proof of intentional fraud. Correct Answer: B) Treat it as an investigative lead until independently corroborated. Rationale: A lead should not automatically be treated as an established fact. 4. An investigator needs to determine whether a business relationship is legitimate. A) Resolve conflicting accounts by choosing the more convenient version. B) Verify the relationship using records, interviews, and independent sources. C) Assume a suspicious pattern proves wrongdoing by itself. D) Compare the source records, determine which is authoritative, and document the discrepancy. Correct Answer: B) Verify the relationship using records, interviews, and independent sources. Rationale: Multiple sources reduce the risk of relying on a false or incomplete representation. 5. A subject provides an explanation that conflicts with bank records. A) Assume a suspicious pattern proves wrongdoing by itself. B) Compare the source records, determine which is authoritative, and document the discrepancy. C) Rely on a single unverified source without corroboration. D) Document the explanation and compare it objectively with the financial evidence. Correct Answer: D) Document the explanation and compare it objectively with the financial evidence. Rationale: Investigators should test explanations against evidence rather than accept or reject them prematurely. 6. A complaint appears outside the agency's jurisdiction. A) Disclose all investigative information to anyone who asks. B) Delay documenting the activity until the end of the investigation. C) Document the explanation and compare it objectively with the financial evidence. D) Determine the proper jurisdiction and refer or coordinate the matter as appropriate. Correct Answer: D) Determine the proper jurisdiction and refer or coordinate the matter as appropriate. Rationale: Jurisdiction should be established early to avoid an improperly conducted investigation. 7. A case has many documents but no clear chronology. A) Build a chronological timeline of material events. B) Change the record informally without documenting the correction. C) Make the conclusion based only on the subject's reputation. D) Begin by assessing the allegation, identifying available leads, and developing a reasonable investigative plan. Correct Answer: A) Build a chronological timeline of material events. Rationale: A timeline helps identify gaps, contradictions, and investigative priorities. 8. An allegation involves several related entities. A) Build a chronological timeline of material events. B) Map the relationships among the entities, people, transactions, and records. C) Document the explanation and compare it objectively with the financial evidence. D) Determine the proper jurisdiction and refer or coordinate the matter as appropriate. Correct Answer: B) Map the relationships among the entities, people, transactions, and records. Rationale: Relationship mapping can reveal common control, shared activity, or unexplained connections. 9. An investigator discovers evidence that weakens the original allegation. A) Access records whenever convenient, regardless of authorization. B) Ignore contrary evidence because it weakens the allegation. C) Document and evaluate the exculpatory information objectively. D) Begin by assessing the allegation, identifying available leads, and developing a reasonable investigative plan. Correct Answer: C) Document and evaluate the exculpatory information objectively. Rationale: A professional investigation considers evidence that supports and weakens the allegation. 10. A new lead materially changes the direction of a case. A) Ignore the issue unless another complaint is received. B) Share the information with coworkers who have no case-related need to know. C) Update the investigative plan and record the reason for the change. D) Accept the allegation as proven without further verification. Correct Answer: C) Update the investigative plan and record the reason for the change. Rationale: Plans should be flexible while remaining documented and accountable. 11. An investigator is unsure whether a document is authentic. A) Allow deadlines to be managed only by memory. B) Build a chronological timeline of material events. C) Verify its origin and compare it with reliable source records. D) Rely on a single unverified source without corroboration. Correct Answer: C) Verify its origin and compare it with reliable source records. Rationale: Authentication should precede reliance on a disputed document. 12. A witness gives information based on what another person told them. A) Identify the source of the information and assess it as potentially secondhand. B) Compare the source records, determine which is authoritative, and document the discrepancy. C) Share the information with coworkers who have no case-related need to know. D) Use emotional or accusatory language in the final report. Correct Answer: A) Identify the source of the information and assess it as potentially secondhand. Rationale: The reliability of secondhand information depends on its source and corroboration. 13. A financial record shows an unusual payment. A) Disclose all investigative information to anyone who asks. B) Close the case immediately because the issue is difficult. C) Assume a suspicious pattern proves wrongdoing by itself. D) Trace the transaction, identify the parties, purpose, date, and supporting documentation. Correct Answer: D) Trace the transaction, identify the parties, purpose, date, and supporting documentation. Rationale: Tracing a transaction establishes context and can expose unexplained transfers. 14. An investigation involves a large volume of data. A) Ignore contrary evidence because it weakens the allegation. B) Treat it as an investigative lead until independently corroborated. C) Use a systematic method to categorize, index, and prioritize the information. D) Determine the proper jurisdiction and refer or coordinate the matter as appropriate. Correct Answer: C) Use a systematic method to categorize, index, and prioritize the information. Rationale: Structured review reduces omissions and improves efficiency. 15. An allegation is repeated by several people who all heard it from one source. A) Verify its origin and compare it with reliable source records. B) Treat the repetition as originating from the same underlying source unless independently corroborated. C) Make the conclusion based only on the subject's reputation. D) Ignore contrary evidence because it weakens the allegation. Correct Answer: B) Treat the repetition as originating from the same underlying source unless independently corroborated. Rationale: Multiple repetitions do not necessarily equal independent corroboration. 16. A case contains a potentially important record that may be altered or lost. A) Disclose all investigative information to anyone who asks. B) Accept the allegation as proven without further verification. C) Document and evaluate the exculpatory information objectively. D) Preserve the record through appropriate procedures and document its handling. Correct Answer: D) Preserve the record through appropriate procedures and document its handling. Rationale: Preservation protects the integrity and future usefulness of evidence. 17. An investigator finds an apparent policy violation that may not constitute fraud. A) Make the conclusion based only on the subject's reputation. B) Update the investigative plan and record the reason for the change. C) Document the facts and distinguish policy noncompliance from fraudulent conduct. D) Use an assumption as though it were an established fact. Correct Answer: C) Document the facts and distinguish policy noncompliance from fraudulent conduct. Rationale: Not every improper act meets the elements of fraud. 18. A subject has a legitimate explanation supported by records. A) Trace the transaction, identify the parties, purpose, date, and supporting documentation. B) Record the explanation and supporting evidence without bias. C) Rely on a single unverified source without corroboration. D) Treat every discrepancy as proof of intentional fraud. Correct Answer: B) Record the explanation and supporting evidence without bias. Rationale: Investigative neutrality requires fair consideration of credible explanations. 19. An investigator needs to compare a subject's reported income with expenditures. A) Record the explanation and supporting evidence without bias. B) Analyze the records for unexplained differences and identify legitimate sources of funds. C) Begin by assessing the allegation, identifying available leads, and developing a reasonable investigative plan. D) Treat the repetition as originating from the same underlying source unless independently corroborated. Correct Answer: B) Analyze the records for unexplained differences and identify legitimate sources of funds. Rationale: Comparative financial analysis can identify inconsistencies requiring further inquiry. 20. A case involves information from several agencies. A) Map the relationships among the entities, people, transactions, and records. B) Identify the authority, reliability, and permissible use of each source before incorporating it. C) Identify the source of the information and assess it as potentially secondhand. D) Treat every discrepancy as proof of intentional fraud. Correct Answer: B) Identify the authority, reliability, and permissible use of each source before incorporating it. Rationale: Source assessment is essential when combining information from different agencies. 21. A supervisor asks for a status update. A) Make the conclusion based only on the subject's reputation. B) Use government information for a private purpose. C) Share the information with coworkers who have no case-related need to know. D) Provide a concise summary of allegations, work completed, significant findings, outstanding leads, andnext steps. Correct Answer: D) Provide a concise summary of allegations, work completed, significant findings, outstanding leads, and next steps. Rationale: A useful status report allows management to understand case posture and resource needs.