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

The Fraud Examiners Manual and CFE Prep Guide explain that tracing loan proceeds is a key investigative tool, but its scope is limited. Specifically, it helps determine:

if proceeds were deposited into hidden accounts,

if hidden accounts were used for loan payments, and

if loans were secured by hidden assets or unknown witnesses.

However, the manuals do not state that tracing loan proceeds can identify internal control weaknesses. That is a different aspect of fraud examination, often addressed through audit procedures or control assessments.

Thus, optionDis NOT true.

“Introductory questions should be designed to establish rapport… Interviewers usually establish rapport by spending a few minutes with the respondent in an informal dialogue”.

Jason’s small talk about sports and compliments is clearly rapport building

“Introductory questions should be designed to establish rapport… the interviewer must establish some common ground with the respondent before he begins the fact-gathering portion of the interview. Interviewers usually establish rapport by spending a few minutes with the respondent in an informal dialogue”.

Thus, Vishal’s small talk about ties and sports is rapport-building.

TheFraud Examiners Manualstresses confidentiality:

“To preserve confidentiality, investigators should avoid transmitting confidential information by email or other electronic means whenever possible, as these are susceptible to interception or unauthorized access.”

Suspending employees or blanket bans on discussion are not best practices. Confidentiality is preserved primarily by secure communication and controlled access to information.

Thecorrect answeris:Whether recording is legal depends onconsent laws— so the most helpful question is effectively:“Is consent required from one or all parties to record this conversation?”

Among the provided choices, theclosest matchisNOT listed explicitly. But based on the ACFE manuals, the correct interpretation is that none of the technical details (audio/video, file format, time, duration) matter —only the legal consent requirement matters.

Complete Detailed Explanation with Exact Extracts from Fraud Examiner (CFE) - Investigation Documents: =

The2014 International Fraud Examiners Manualstates:

“In some circumstances, recording an interview might be illegal. Some jurisdictions limit an employer’s right to record employee interviews during an investigation. In fact, in some jurisdictions, audio recording an interview is permitted only with the consent of all parties to the communication. Thus, fraud examiners should always consult with an attorney when deciding whether to record an interview.”

It further emphasizes:

“A telephone recording consent form stipulates where, when, and with whom telephone conversations can be recorded… Be cautioned that the form alone does not make the conduct of recording a telephone conversation illegal or legal.”

????Interpretation:

The legality of recording has nothing to do with:

Audio vs video(A)

Digital file format(B)

Work hours(C)

Duration(D)

Instead, it dependsentirely on jurisdictional consent laws(one-party vs all-party consent).

“Fraud examinations should proceed from thegeneral to the specific. That is, they should begin with general information that is known, starting at the periphery, and then move to the more specific details”.

This method avoids premature assumptions and ensures systematic evidence development.

TheFraud Examiners Manualadvises that fraud examiners should preserve and organize evidence, and one of the key steps is toestablish a document database early. This allows examiners to track documents, index them, and link them to findings. Dusting for fingerprints, leaving originals behind, or organizing solely in chronological order are not standard best practices .

TheCFE Prep Guideclarifies:

“A fraud response plan outlines the actions… when suspicions of fraud have arisen. Because every fraud is different, the response plan should not outline how a fraud examination should be conducted. Instead, response plans should help organizations manage their responses and create environments to minimize risk and maximize the potential for success”.

Thus, statement D is false.

TheFraud Examiners Manualstresses that interview notes should be kept separately for each interview, even if the session is electronically recorded, because recordings can fail or be challenged. Verbatim transcripts are not expected, and impressions of guilt should never be included. Best practice is to keep clear, accurate,separate recordsfor every interview .

TheFraud Examiners Manualstates:

“Records obtained from financial institutions are perhaps the single most important financial source available to a fraud examiner for tracing purposes”.

These records reveal deposits, withdrawals, transfers, and are essential in asset tracing.