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

“Securities regulators… require disclosures that typically include: corporate financial statements, identification of officers and directors, identification of significant owners… and a history of the business”【10:2014 International Fraud Examiners Manual.pdf†L73-L95】.

Thus, regulatory securities records are the best source for financial statements.

The Fraud Examiners Manual states:

“Interviewers are encouraged to formulate their questions in a way that will not bring about a strong emotional reaction… emotive words of all types should be avoided during the introductory phase. Such words put people on the defensive”.

Thus, statement C is NOT true.

“Documentary evidence, including digital evidence, will not be admitted… unless it is established as authentic… fraud examiners must capture, download, and preserve any useful information as soon as they discover it, and memorialize each step of the collection process”.

Before pursuing litigation, fraud examiners are advised to consider whether nonlegal remedies (e.g., restitution agreements, settlements, insurance recovery) are possible, since legal actions can be costly, slow, and uncertain. Statutes of limitation and guilt are legal issues for attorneys and courts, but examiners must weigh recovery options first.

 “As a general rule, questioning should proceed from the general to the specific; it is best to seek general information before details. A variation… is to begin with known information and work towards unknown areas”【9:2014 International Fraud Examiners Manual.pdf†L39-L51】.

 Random order is not recommended and breaks the logical flow.

The Fraud Examiners Manual notes:

“Fraud examiners are often tasked with tracing illicit transactions… For example, a victim of fraud might want a tracing search to facilitate the recovery of criminal proceeds”.

The Fraud Examiners Manual states:

“If a business or individual constructs a new building or makes improvements to an existing building, there should be a building permit on file with the local building authority. In many cases, the person applying for permits will be the owner or someone traceable to the owner.”

CFE Prep supports this:

“Building permit records… are often required before most businesses can open… and often list the owner or someone traceable to the owner.”

Thus, building permit records are most likely to help identify the restaurant’s owner.

The Fraud Examiners Manual emphasizes that before commencing legal action to recover assets, the examiner must consider whether the defendant has assets worth pursuing:

“The most important question a fraud examiner should ask before beginning legal action to recover assets is whether the defendant has sufficient property or money to satisfy a judgment. Legal actions can be time-consuming and costly, and recovery efforts are futile if the defendant is judgment-proof.”

Before commencing legal action to recover assets, the most critical consideration is whether the defendant has recoverable assets. If the defendant lacks property or funds, pursuing legal action could be costly and ultimately fruitless.

From the 2014 International Fraud Examiners Manual:

“After a fraud is discovered, fraud examiners might need to assist in making a recommendation concerning the recovery of lost assets… A domestic judgment against a foreign defendant is usually helpful for recovering the defendant’s assets located in the domestic country, but might be worthless for obtaining the defendant’s assets in a foreign country.”

This emphasizes that enforcement of judgments is only meaningful if assets exist to satisfy them.

Similarly, the CFE Prep - Investigations material highlights asset tracing and recovery as the foundation for deciding legal action:

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

???? Interpretation of Answer Choices:

A. Prior arrests → Not directly relevant to whether asset recovery will succeed.

C. Statute of limitations → Important for legal viability, but meaningless if no assets exist to recover.

D. Guilt of the suspect → Guilt must be established in criminal cases, but in civil recovery, asset availability is paramount.

B. Defendant’s property or money → This is the most important practical question, because without assets, recovery efforts will not yield compensation regardless of guilt or legal timelines.

The Fraud Examiners Manual explains:

“A Certified Fraud Examiner should not promise confidentiality or leniency to an informant to obtain testimony… the confidentiality relationship runs first to the client or employer”.

Thus, Lisa cannot guarantee full confidentiality but may state she will do her best.

“Distractions should be kept to a minimum. Ideally, there should be no photographs, windows, or other objects in the room. Chairs should be placed about four to six feet apart, and the accused should not be permitted to sit behind any physical barriers, such as chairs, tables, or desks” .

The door should be closed (but not locked), not open .

Tables or desks should not be between interviewer and suspect .

Thus, the correct adjustment is removing distractions (pictures/posters).