NYC Associate Fraud Investigator Exam 2026-190 QUESTIONS AND ANSWERS
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NYC Associate Fraud Investigator Exam - 200 Practice Questions
Exam Coverage Summary
The NYC Associate Fraud Investigator Exam tests knowledge across several key
domains:
Fraud Investigation Fundamentals - Fraud triangle, types of fraud, elements of
fraud
NYC Benefit Program Fraud - SNAP, Cash Assistance, Medicaid, Housing fraud
schemes
Payroll & Time Theft - Overtime padding, buddy punching, ghost employees
Procurement & Contract Fraud - Bid rigging, vendor collusion, kickbacks
Evidence & Documentation - Chain of custody, document analysis, report writing
,NYC Conflict of Interest Laws - NYC Charter Chapter 68, ethics rules
Legal Procedures - Search warrants, arrests, court testimony, subpoenas
Section 1: Fraud Investigation Fundamentals (Questions 1-35)
Question 1
The primary purpose of a fraud investigation is to:
A) Punish all individuals suspected of wrongdoing
B) Determine facts through systematic examination of evidence
C) Eliminate all financial risks immediately
D) Identify the perpetrator before gathering evidence
Correct Answer: B
Rationale: The primary purpose of a fraud investigation is to systematically
examine evidence to determine the facts of a case. Punishment is the role of the
judicial system, not investigators. Investigations must be fact-based and
methodical rather than presumptive.
,Question 2
The "fraud triangle" consists of which three elements?
A) Pressure, Opportunity, Rationalization
B) Profit, Oversight, Risk
C) Planning, Execution, Concealment
D) Access, Authority, Intent
Correct Answer: A
Rationale: The fraud triangle identifies three conditions typically present when
fraud occurs: pressure/incentive, opportunity, and rationalization. Understanding
these helps investigators identify risk factors and predict potential fraud
scenarios.
Question 3
Which of the following is the best definition of "predication" in fraud
investigation?
A) A prediction about who committed the fraud
, B) A reasonable basis for believing fraud has occurred
C) A confession obtained during interrogation
D) The monetary threshold for investigation
Correct Answer: B
Rationale: Predication refers to the reasonable basis or grounds to suspect fraud
has occurred. It is the threshold that must be met before initiating a formal
investigation. Organizations must evaluate the strength of predication before
committing resources to an investigation.
Question 4
When deciding whether to investigate, which factor should an organization
consider?
A) Possible cost of the investigation
B) Perceived strength of the predication
C) Possible public exposure resulting from the investigation
D) All of the above
ALREADY GRADED A+. 100% Verified Solutions Updated Per Latest Guidelines
Graded A+
NYC Associate Fraud Investigator Exam - 200 Practice Questions
Exam Coverage Summary
The NYC Associate Fraud Investigator Exam tests knowledge across several key
domains:
Fraud Investigation Fundamentals - Fraud triangle, types of fraud, elements of
fraud
NYC Benefit Program Fraud - SNAP, Cash Assistance, Medicaid, Housing fraud
schemes
Payroll & Time Theft - Overtime padding, buddy punching, ghost employees
Procurement & Contract Fraud - Bid rigging, vendor collusion, kickbacks
Evidence & Documentation - Chain of custody, document analysis, report writing
,NYC Conflict of Interest Laws - NYC Charter Chapter 68, ethics rules
Legal Procedures - Search warrants, arrests, court testimony, subpoenas
Section 1: Fraud Investigation Fundamentals (Questions 1-35)
Question 1
The primary purpose of a fraud investigation is to:
A) Punish all individuals suspected of wrongdoing
B) Determine facts through systematic examination of evidence
C) Eliminate all financial risks immediately
D) Identify the perpetrator before gathering evidence
Correct Answer: B
Rationale: The primary purpose of a fraud investigation is to systematically
examine evidence to determine the facts of a case. Punishment is the role of the
judicial system, not investigators. Investigations must be fact-based and
methodical rather than presumptive.
,Question 2
The "fraud triangle" consists of which three elements?
A) Pressure, Opportunity, Rationalization
B) Profit, Oversight, Risk
C) Planning, Execution, Concealment
D) Access, Authority, Intent
Correct Answer: A
Rationale: The fraud triangle identifies three conditions typically present when
fraud occurs: pressure/incentive, opportunity, and rationalization. Understanding
these helps investigators identify risk factors and predict potential fraud
scenarios.
Question 3
Which of the following is the best definition of "predication" in fraud
investigation?
A) A prediction about who committed the fraud
, B) A reasonable basis for believing fraud has occurred
C) A confession obtained during interrogation
D) The monetary threshold for investigation
Correct Answer: B
Rationale: Predication refers to the reasonable basis or grounds to suspect fraud
has occurred. It is the threshold that must be met before initiating a formal
investigation. Organizations must evaluate the strength of predication before
committing resources to an investigation.
Question 4
When deciding whether to investigate, which factor should an organization
consider?
A) Possible cost of the investigation
B) Perceived strength of the predication
C) Possible public exposure resulting from the investigation
D) All of the above
