4a CFE Investigations & Fraud Examination Questions and Answers
Each fraud examination should be conducted with the A.True
assumption that the case will result in legal
proceedings.
A.True
B.False
Which of the following BEST describes predication? D.The basis upon which a fraud examination is undertaken
A.The initial phase of the investigative process
B.The initial phase of an interview
C.The means by which individuals justify their unethical
actions
D.The basis upon which a fraud examination is
undertaken
Carter, a Certified Fraud Examiner (CFE) for Universal D.Conduct discreet inquiries about Wendi's work as a salesperson.
Design, learns that Wendi, a shrewd salesperson with a
reputation for bending or ignoring rules, has close
relationships with several Universal Design customers.
Carter also knows that Wendi has excessive gambling
habits. Carter has sufficient predication to:
A.Accuse Wendi directly of having committed fraud.
B.Alert management that Wendi might have committed
fraud.
C.Check Wendi's phone, computer, and messages for
evidence of wrongdoing.
D.Conduct discreet inquiries about Wendi's work as a
salesperson.
Which of the following terms is defined as the totality of C.Predication
circumstances that would lead a reasonable,
professionally trained, and prudent individual to believe
a fraud has occurred, is occurring, or will occur?
A.Declaration
B.Fraud theory
C.Predication
D.Suspicion
, 4a CFE Investigations & Fraud Examination Questions and Answers
Management of the ABC Company hired Michael, a B.Amanda, a neutral employee, who is the director of ABC's accounting
fraud examiner, to investigate Deborah, an employee in department
ABC's accounting department, for embezzlement.
According to the fraud examination methodology,
which of the following individuals should Michael
interview first?
A.Deborah
B.Amanda, a neutral employee, who is the director of
ABC's accounting department
C.Roger, an employee for the ABC Company, who is
suspected of being an accomplice to Deborah's
scheme
D.John, Deborah's spouse
In general, the subject of an investigation should be B.False
interviewed first.
A.True
B.False
Which of the following statements about how fraud A.Fraud examinations should begin with general information that is known and
examiners should approach fraud examinations is then transition to details that are more specific
CORRECT?
A.Fraud examinations should begin with general
information that is known and then transition to details
that are more specific
B.In most examinations, fraud examiners should
interview the suspect before any other possible
interview candidates
C.Individuals who appear to be more involved in the
fraud scheme should be interviewed at the beginning
of the investigation
D.All of the above
When conducting fraud examinations, fraud examiners A.True
should follow the fraud theory approach.
A.True
B.False
A fraud response plan details the actions an A.True
organization will take when suspicions of fraud arise.
A.True
B.False
An organization's fraud response plan should detail B.False
how the organization will conduct fraud examinations in
all situations, regardless of the type of fraud that took
place.
A.True
B.False
, 4a CFE Investigations & Fraud Examination Questions and Answers
Which of the following is INCORRECT regarding fraud A.A fraud response plan should be complex and extremely detailed to ensure
response plans? its effectiveness.
A.A fraud response plan should be complex and
extremely detailed to ensure its effectiveness.
B.A fraud response plan should take both previous
fraud cases and industry-related risks into
consideration.
C.A fraud response plan should be flexible and allow
appropriate responses based on the particular event.
D.A fraud response plan should create an environment
that minimizes risk and maximizes the potential for
success.
When evidence of fraud arises, management generally D.All of the above
should respond by:
A.Conducting an initial assessment
B.Identifying who should be informed
C.Preserving relevant documents
D.All of the above
Which of the following is the LEAST APPROPRIATE D.Suspect's supervisor
participant on a team assembled to investigate fraud?
A.Legal counsel
B.Auditor
C.Industry specialist
D.Suspect's supervisor
Which of the following steps should be taken to D.All of the above
prepare an organization for a formal fraud
investigation?
A.Prepare the managers of the employees who will be
involved in the investigation
B.Notify key decision-makers when the investigation is
about to begin
C.Notify the organization's legal counsel when the
investigation is about to commence
D.All of the above
To properly prepare an organization for a formal fraud B.False
investigation, all employees should be notified of the
investigation's existence and purpose.
A.True
B.False
To preserve the confidentiality of a fraud investigation, B.False
management should always implement a policy
prohibiting all employees from discussing anything
related to employee investigations.
A.True
B.False
, 4a CFE Investigations & Fraud Examination Questions and Answers
Which of the following is a measure that can be taken D.All of the above
to avoid alerting suspects that they are being
investigated?
A.Know what information the suspect can access
B.Investigate during nonbusiness hours
C.Inform only those who need to know
D.All of the above
Which of the following is a recommended procedure D.All of the above
for protecting a fraud investigation's case information?
A.Store all confidential documents in locked file
cabinets or rooms accessible only to those who have a
need to know
B.Avoid talking about the investigation in public or in
any place where other employees can hear the
communications
C.Avoid using email or other electronic means to
transmit confidential case information
D.All of the above
To preserve the confidentiality of a fraud investigation B.False
by ensuring that it is afforded protection under a legal
professional privilege, a government official should
direct or supervise the investigation.
A.True
B.False
Which of the following is NOT one of the primary types D.Incriminating evidence
of evidence that fraud examiners must consider or
gather when conducting investigations?
A.Documentary evidence
B.Testimonial evidence
C.Digital evidence
D.Incriminating evidence
Information stored in electronic form on computer and A.Digital evidence
storage devices is considered which of the following
types of evidence?
A.Digital evidence
B.Documentary evidence
C.Analog evidence
D.Forensic evidence
Each fraud examination should be conducted with the A.True
assumption that the case will result in legal
proceedings.
A.True
B.False
Which of the following BEST describes predication? D.The basis upon which a fraud examination is undertaken
A.The initial phase of the investigative process
B.The initial phase of an interview
C.The means by which individuals justify their unethical
actions
D.The basis upon which a fraud examination is
undertaken
Carter, a Certified Fraud Examiner (CFE) for Universal D.Conduct discreet inquiries about Wendi's work as a salesperson.
Design, learns that Wendi, a shrewd salesperson with a
reputation for bending or ignoring rules, has close
relationships with several Universal Design customers.
Carter also knows that Wendi has excessive gambling
habits. Carter has sufficient predication to:
A.Accuse Wendi directly of having committed fraud.
B.Alert management that Wendi might have committed
fraud.
C.Check Wendi's phone, computer, and messages for
evidence of wrongdoing.
D.Conduct discreet inquiries about Wendi's work as a
salesperson.
Which of the following terms is defined as the totality of C.Predication
circumstances that would lead a reasonable,
professionally trained, and prudent individual to believe
a fraud has occurred, is occurring, or will occur?
A.Declaration
B.Fraud theory
C.Predication
D.Suspicion
, 4a CFE Investigations & Fraud Examination Questions and Answers
Management of the ABC Company hired Michael, a B.Amanda, a neutral employee, who is the director of ABC's accounting
fraud examiner, to investigate Deborah, an employee in department
ABC's accounting department, for embezzlement.
According to the fraud examination methodology,
which of the following individuals should Michael
interview first?
A.Deborah
B.Amanda, a neutral employee, who is the director of
ABC's accounting department
C.Roger, an employee for the ABC Company, who is
suspected of being an accomplice to Deborah's
scheme
D.John, Deborah's spouse
In general, the subject of an investigation should be B.False
interviewed first.
A.True
B.False
Which of the following statements about how fraud A.Fraud examinations should begin with general information that is known and
examiners should approach fraud examinations is then transition to details that are more specific
CORRECT?
A.Fraud examinations should begin with general
information that is known and then transition to details
that are more specific
B.In most examinations, fraud examiners should
interview the suspect before any other possible
interview candidates
C.Individuals who appear to be more involved in the
fraud scheme should be interviewed at the beginning
of the investigation
D.All of the above
When conducting fraud examinations, fraud examiners A.True
should follow the fraud theory approach.
A.True
B.False
A fraud response plan details the actions an A.True
organization will take when suspicions of fraud arise.
A.True
B.False
An organization's fraud response plan should detail B.False
how the organization will conduct fraud examinations in
all situations, regardless of the type of fraud that took
place.
A.True
B.False
, 4a CFE Investigations & Fraud Examination Questions and Answers
Which of the following is INCORRECT regarding fraud A.A fraud response plan should be complex and extremely detailed to ensure
response plans? its effectiveness.
A.A fraud response plan should be complex and
extremely detailed to ensure its effectiveness.
B.A fraud response plan should take both previous
fraud cases and industry-related risks into
consideration.
C.A fraud response plan should be flexible and allow
appropriate responses based on the particular event.
D.A fraud response plan should create an environment
that minimizes risk and maximizes the potential for
success.
When evidence of fraud arises, management generally D.All of the above
should respond by:
A.Conducting an initial assessment
B.Identifying who should be informed
C.Preserving relevant documents
D.All of the above
Which of the following is the LEAST APPROPRIATE D.Suspect's supervisor
participant on a team assembled to investigate fraud?
A.Legal counsel
B.Auditor
C.Industry specialist
D.Suspect's supervisor
Which of the following steps should be taken to D.All of the above
prepare an organization for a formal fraud
investigation?
A.Prepare the managers of the employees who will be
involved in the investigation
B.Notify key decision-makers when the investigation is
about to begin
C.Notify the organization's legal counsel when the
investigation is about to commence
D.All of the above
To properly prepare an organization for a formal fraud B.False
investigation, all employees should be notified of the
investigation's existence and purpose.
A.True
B.False
To preserve the confidentiality of a fraud investigation, B.False
management should always implement a policy
prohibiting all employees from discussing anything
related to employee investigations.
A.True
B.False
, 4a CFE Investigations & Fraud Examination Questions and Answers
Which of the following is a measure that can be taken D.All of the above
to avoid alerting suspects that they are being
investigated?
A.Know what information the suspect can access
B.Investigate during nonbusiness hours
C.Inform only those who need to know
D.All of the above
Which of the following is a recommended procedure D.All of the above
for protecting a fraud investigation's case information?
A.Store all confidential documents in locked file
cabinets or rooms accessible only to those who have a
need to know
B.Avoid talking about the investigation in public or in
any place where other employees can hear the
communications
C.Avoid using email or other electronic means to
transmit confidential case information
D.All of the above
To preserve the confidentiality of a fraud investigation B.False
by ensuring that it is afforded protection under a legal
professional privilege, a government official should
direct or supervise the investigation.
A.True
B.False
Which of the following is NOT one of the primary types D.Incriminating evidence
of evidence that fraud examiners must consider or
gather when conducting investigations?
A.Documentary evidence
B.Testimonial evidence
C.Digital evidence
D.Incriminating evidence
Information stored in electronic form on computer and A.Digital evidence
storage devices is considered which of the following
types of evidence?
A.Digital evidence
B.Documentary evidence
C.Analog evidence
D.Forensic evidence
