Pass the ACFE Certified Fraud Examiner CFE-Investigation Questions and answers with CertsForce

Complex questions:

“consist of a series of interrelated questions… too complicated to be easily understood, cover more than one subject, or require more than one answer”.

The question asked by Delta (“Were you aware that the signature was forged, and why didn’t you tell anyone earlier?”) covers two issues, making itcomplex.

Digital forensics guidance stresses:

If the computer isoff,do not turn it on, because booting will alter files and timestamps.

If the computer isonand volatile data is needed (e.g., RAM), a formally trained examiner may collect it live. Otherwise, simply unplugging the system (hard shutdown) preserves volatile evidence better than a graceful shutdown.

Thus, if the evidence exists only in volatile data and the system is running, Nobles may collect it via the normal interface.

✅Answer: A. If Lucas's computer is running, Nobles may retrieve data… if the evidence exists only in volatile data

TheFraud Examiners Manualexplains:

“Before running tests on the data, the fraud examiner must make certain the data being analysed are relevant and reliable for the objective of the engagement… Using the profile of potential frauds as a guide, the fraud examiner must identify the target data for analysis”.

The manual emphasizes that interviews—especially with subjects in other jurisdictions—poselegal and cultural considerations. Fraud examiners must considercultural norms (such as personal space, body language, and eye contact) and jurisdiction-specific lawsgoverning the use of information from interviews. In particular, some jurisdictions limit how interview information can later be used. Therefore, the most accurate statement is that the examiner should verify such limitations before proceeding.

Nonpublic records include banking, tax, credit, phone, credit card, and health care records.

Business entity organisational filings (corporate constitutions, articles of incorporation) are generallypublic recordsand can be obtained from the government.

Therefore, reviewing a company’s business filings doesnotrequire access to nonpublic records.

Textual analytics is described as:

“a method of using software to extract usable information from unstructured text data… to reveal patterns, sentiments, and relationships indicative of fraud… Textual analytics provides the ability to uncover additional warning signs of rogue employee behavior”.

Its purpose isnotto find direct admissions but to identify indicators and patterns.

Fraud examiners mustnot opine on guilt, innocence, intent, or disposition. Reports should focus onfacts and expert conclusions within their field. The Manual stresses:

“The fraud examiner should refrain from expressing opinions as to the guilt or innocence of any person or entity. Such conclusions are reserved for the trier of fact” (Fraud Examiners Manual, Reporting section).

Options A, B, and D relate toaccounting and internal control assessments, which fall within an accounting expert’s scope. OnlyCis improper because it speculates about the suspect’s character or intent, which is outside the CFE’s role.

To confirm ownership of a building,real estate and permit recordsare most useful. The Manual notes thatreal property records and related permits identify the owner, provide legal descriptions, and show improvements such as construction of commercial buildings. Court or voter registration records would not typically establish property ownership.

TheFraud Examiners Manualdefines double-negative questions as those containingtwo forms of negation in a single clause. They are confusing and “often suggest an answer opposite to the correct one.” The example given is almost identical to the question here:

“Didn’t you suspect that something wasn’t right?”.

Thus, Sylvia’s question is adouble-negative question, which should be avoided.

The Fraud Examiners Manual defines compliance verification as:

“Compliance verification determines whether company policies are met by employee transactions. For example, when employees are out of town, do they adhere to the company policy of not spending more than $30 a day for meals?” .

Thus, the correct function iscompliance verification.