CFE INVESTIGATION
QUESTIONS & ANSWERS | REAL EXAM CONTENT
| COMPREHENSIVE TEST PRACTIC
c What is predication? - Correct answer.The totality of circumstances that would lead a reasonable,
professionally trained, and prudent individual to believe that a fraud has occurred, is occurring, or will
occur
What is the fraud theory approach? - Correct answer.An investigative approach in which the fraud
examiner forms a hypothesis (or theory) of what might have occurred and then tests the hypothesis to
determine whether it is provable
What is a fraud response plan? - Correct answer.A plan that details the actions that members of an
organization will take when suspicions of fraud arise
What assumption must fraud examiners make about every fraud examination? - Correct answer.That the
case will result in legal proceedings
General order of witness interviews in fraud examinations - Correct answer.Neutral third-party
witnesses
Parties suspected of complicity
Primary suspect(s)
What is fraud examination? - Correct answer.A process of resolving allegations of fraud from inception
to disposition
4 tasks encompassed in the fraud examination process - Correct answer.Obtaining evidence
, Reporting
Testifying to findings
Assisting in fraud detection and prevention
4 steps of the fraud theory approach - Correct answer.Analyze the available data
Create a hypothesis
Test the hypothesis
Refine and amend the hypothesis
Order in which questions should be asked during an interview - Correct answer.As a general rule,
questions should proceed from the general to the specific
What is rapport? - Correct answer.A harmonious accord or relation that fosters cooperation,
communication, or trust
What is a free narrative? - Correct answer.An orderly, continuous account of an event or incident that a
respondent gives with minimal or no prompting from the interviewer
What is a double-negative question? - Correct answer.A question that has 2 forms of negation within a
single clause
What is a controlled answer technique? - Correct answer.A statement that can be used to simulate a
desired answer or impression
What is a complex question? - Correct answer.A question that contains two or more distinct questions
What are open questions? - Correct answer.Questions worded in a manner that makes them difficult to
answer with a yes or no
What is meant by establishing a baseline? - Correct answer.The process of observing an interviewee's
behavior prior to posing critical questions
QUESTIONS & ANSWERS | REAL EXAM CONTENT
| COMPREHENSIVE TEST PRACTIC
c What is predication? - Correct answer.The totality of circumstances that would lead a reasonable,
professionally trained, and prudent individual to believe that a fraud has occurred, is occurring, or will
occur
What is the fraud theory approach? - Correct answer.An investigative approach in which the fraud
examiner forms a hypothesis (or theory) of what might have occurred and then tests the hypothesis to
determine whether it is provable
What is a fraud response plan? - Correct answer.A plan that details the actions that members of an
organization will take when suspicions of fraud arise
What assumption must fraud examiners make about every fraud examination? - Correct answer.That the
case will result in legal proceedings
General order of witness interviews in fraud examinations - Correct answer.Neutral third-party
witnesses
Parties suspected of complicity
Primary suspect(s)
What is fraud examination? - Correct answer.A process of resolving allegations of fraud from inception
to disposition
4 tasks encompassed in the fraud examination process - Correct answer.Obtaining evidence
, Reporting
Testifying to findings
Assisting in fraud detection and prevention
4 steps of the fraud theory approach - Correct answer.Analyze the available data
Create a hypothesis
Test the hypothesis
Refine and amend the hypothesis
Order in which questions should be asked during an interview - Correct answer.As a general rule,
questions should proceed from the general to the specific
What is rapport? - Correct answer.A harmonious accord or relation that fosters cooperation,
communication, or trust
What is a free narrative? - Correct answer.An orderly, continuous account of an event or incident that a
respondent gives with minimal or no prompting from the interviewer
What is a double-negative question? - Correct answer.A question that has 2 forms of negation within a
single clause
What is a controlled answer technique? - Correct answer.A statement that can be used to simulate a
desired answer or impression
What is a complex question? - Correct answer.A question that contains two or more distinct questions
What are open questions? - Correct answer.Questions worded in a manner that makes them difficult to
answer with a yes or no
What is meant by establishing a baseline? - Correct answer.The process of observing an interviewee's
behavior prior to posing critical questions
