CFE EXAM – INVESTIGATION
QUESTIONS AND ANSWERS WITH
VERIFIED SOLUTION
y Two main forms of covert operations - Correct answer.Undercover and Surveillance
Undercover operations - Correct answer.Use deception and disguise to obtain evidence
Surveillance operations - Correct answer.Use observation to gather information on suspects
T/F: Photographing or recording videos of someone in public is illegal - Correct answer.False, as long as
you don't record their voices, this is legal
Entrapment - Correct answer.When law enforcement or government agents induce a person to commit
a crime they were no previously disposed to commit. Predication is needed for these inducements to be
justified
Predication - Correct answer.(logic) a declaration of something self-evident
T/F: A fraud examiner can offer unqualified confidentiality to a confidential information - Correct
answer.FALSE
Covert Operation - Correct answer.Investigation technique designed to obtain evidence by use of agents
whose true intentions are not communicated to the target
, Four items a covert operation memo should clearly state - Correct answer.1. Information upon which
the covert operation will be based
2. Information expected to be gained
3. Identities of suspects, if known
4. Operatives under the fraud examiner's care, custody, or control
Structured Data - Correct answer.sales records, payment/expense details, financial reports
Unstructured Data - Correct answer.Typically text data
Duplicate Testing - Correct answer.Testing to identify transactions with duplicate values in specified fields
Benford's Law - Correct answer.Distinguishes natural and non-natural numbers. Analysis should be
against natural numbers. Natural numbers are typically dollar amounts on transaction details
First phase of data analysis process - Correct answer.Planning phase
Steps in planning phase of data analysis - Correct answer.UDBD
1. understand data
2. define examination objectives
3. build profile of potential frauds
4. determine whether predication exists
Link analysis - Correct answer.Showing visual representations between relationships
Join Function - Correct answer.Join combines data from two fields into a third field
Second phase of data - Correct answer.Preparation phase
QUESTIONS AND ANSWERS WITH
VERIFIED SOLUTION
y Two main forms of covert operations - Correct answer.Undercover and Surveillance
Undercover operations - Correct answer.Use deception and disguise to obtain evidence
Surveillance operations - Correct answer.Use observation to gather information on suspects
T/F: Photographing or recording videos of someone in public is illegal - Correct answer.False, as long as
you don't record their voices, this is legal
Entrapment - Correct answer.When law enforcement or government agents induce a person to commit
a crime they were no previously disposed to commit. Predication is needed for these inducements to be
justified
Predication - Correct answer.(logic) a declaration of something self-evident
T/F: A fraud examiner can offer unqualified confidentiality to a confidential information - Correct
answer.FALSE
Covert Operation - Correct answer.Investigation technique designed to obtain evidence by use of agents
whose true intentions are not communicated to the target
, Four items a covert operation memo should clearly state - Correct answer.1. Information upon which
the covert operation will be based
2. Information expected to be gained
3. Identities of suspects, if known
4. Operatives under the fraud examiner's care, custody, or control
Structured Data - Correct answer.sales records, payment/expense details, financial reports
Unstructured Data - Correct answer.Typically text data
Duplicate Testing - Correct answer.Testing to identify transactions with duplicate values in specified fields
Benford's Law - Correct answer.Distinguishes natural and non-natural numbers. Analysis should be
against natural numbers. Natural numbers are typically dollar amounts on transaction details
First phase of data analysis process - Correct answer.Planning phase
Steps in planning phase of data analysis - Correct answer.UDBD
1. understand data
2. define examination objectives
3. build profile of potential frauds
4. determine whether predication exists
Link analysis - Correct answer.Showing visual representations between relationships
Join Function - Correct answer.Join combines data from two fields into a third field
Second phase of data - Correct answer.Preparation phase
