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QUESTION
Investigation Techniques
Which of the following can be obtained from a wire transfer record?
A. The name of the sender or originator
B. The sending institution’s accreditation type
C. The recipient’s government identification number
D. The name of the receiving institution’s registered agentCharles, a fraud examiner, accuses George of fraud during an admission-seeking interview. George immediately denies the charge. How should Charles respond to George’s denial?
A. Counter the denial by arguing with George until further denials are futile.
B. Use a delaying tactic to interrupt the denial.
C. Remind George he has to tell the truth or face perjury.
D. Allow George to continue denying the charge.When reporting the results of a fraud examination, it is best to include copies (not originals) of important documents in the formal report.
A. True
B. FalseWhich of the following is a best practice for obtaining a signed statement?
A. Make sure that everything is included in the signed statement and that no addendums are made.
B. Have two individuals witness the signing of the document when possible.
C. Include all of the subject’s offenses, whether related or not, in a single document.
D. Have the suspect write out the entire statement in his own handwriting.Dennis, a fraud investigator, is interviewing Richard, a fraud suspect. During the interview, Dennis suspects that Richard is not answering questions honestly. To gauge Richard’s credibility, which type of question should Dennis ask?
A. Assessment
B. Open
C. Rhetorical
D. LeadingWhich of the following statements concerning a well-written fraud examination report is most accurate?
A. The report should convey all information provided by witnesses.
B. The report writer should avoid technical jargon where possible.
C. Only relevant facts that support the fraud allegation should be included in the report.
D. Signed copies of the fraud examiner’s interview notes should be used to report interview details.Which of the following should be done to prepare an organization for a formal fraud investigation?
A. Inform the subject that he is under investigation.
B. Notify key decision makers that the investigation is about to begin.
C. Notify all managers about the investigation, explaining why it is happening and who is involved.
D. Send an email to all employees explaining the investigation’s purpose.Why is it necessary to image a seized computer’s hard drive for forensic analysis?
A. To prohibit access to the suspect computer’s hard drive by individuals not professionally trained in forensic analysis
B. To allow for the analysis of data from a suspect computer without altering or damaging the original data in any way
C. To create pictures of the suspect computer system and its wires and cables
D. To enable the retrieval of data from the suspect computer directly via its operating systemWhich of the following statements would be IMPROPER if included in the fraud examination report of a CFE who is also qualified as an accounting expert?
A. “The company’s internal controls were wholly inadequate to prevent this type of violation and should be remediated at the earliest possible time.”
B. “Based on statements he made to me, it is my assessment that the suspect has a dishonest disposition.”
C. “From my examination, it appears that the company’s financial statements were not presented in accordance with generally accepted accounting principles.”
D. “The evidence shows that expenses in excess of $5 million were omitted from the company’s financial statements.”David, an interviewer with little experience, asks Smith, the respondent, the following question: “Were you aware that the signature was forged, and why didn’t you tell anyone earlier?” This kind of question is called a _____________ question.
A. Double-negative
B. Free narrative
C. Controlled answer
D. ComplexWhen a Certified Fraud Examiner conducts a fraud examination, he must proceed as though:
A. The suspect is guilty.
B. After the suspect is terminated, the case will end.
C. The case will end in litigation.
D. The matter will be resolved completely internally.Which of the following statements about data mining is INCORRECT?
A. Data mining is an effective way for fraud examiners to develop fraud targets for further investigation.
B. Data mining is the science of searching large volumes of data for patterns.
C. Data mining can be used to streamline raw data into understandable patterns.
D. Data mining is used to recover deleted data from a computer system.Assuming that a jurisdiction has prohibited pretexting with financial institutions, which of the following actions would constitute illegal pretexting?
A. Making purchases with a credit card account under a fictitious identity
B. Digging through a person’s trash to obtain his bank account information
C. Withdrawing another person’s funds using a stolen bank account number and PIN
D. Falsely claiming to be the spouse of an account holder to access bank recordsWhich of the following would be most useful in determining who created a specific document file?
A. Operating system partition
B. The document’s metadata
C. The system log
D. Internet activity dataLooking at a list of expenses, Karen notices that airfare expenses have risen dramatically, but she believes that the staff actually traveled fewer days this year than last year. Which of the following data analysis functions would be the most useful in helping Karen analyze these two variables?
A. Correlation analysis
B. Gap testing
C. Duplicate testing
D. Benford’s Law analysis
Subject | Law and governance | Pages | 26 | Style | APA |
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Answer
Investigation Techniques Which of the following can be obtained from a wire transfer record? A Charles, a fraud examiner, accuses George of fraud during an admission-seeking interview. George immediately denies the charge. How should Charles respond to George’s denial? When reporting the results of a fraud examination, it is best to include copies (not originals) of important documents in the formal report. Which of the following is a best practice for obtaining a signed statement? Dennis, a fraud investigator, is interviewing Richard, a fraud suspect. During the interview, Dennis suspects that Richard is not answering questions honestly. To gauge Richard’s credibility, which type of question should Dennis ask? Which of the following statements concerning a well-written fraud examination report is most accurate? Which of the following should be done to prepare an organization for a formal fraud investigation? Why is it necessary to image a seized computer’s hard drive for forensic analysis? Which of the following statements would be IMPROPER if included in the fraud examination report of a CFE who is also qualified as an accounting expert? David, an interviewer with little experience, asks Smith, the respondent, the following question: “Were you aware that the signature was forged, and why didn’t you tell anyone earlier?” This kind of question is called a _____________ question. When a Certified Fraud Examiner conducts a fraud examination, he must proceed as though: Which of the following statements about data mining is INCORRECT? Assuming that a jurisdiction has prohibited pretexting with financial institutions, which of the following actions would constitute illegal pretexting? Which of the following would be most useful in determining who created a specific document file? Looking at a list of expenses, Karen notices that airfare expenses have risen dramatically, but she believes that the staff actually traveled fewer days this year than last year. Which of the following data analysis functions would be the most useful in helping Karen analyze these two variables? Barnes, a CFE, is using data analysis to identify anomalies that might indicate fraud in XYZ Company’s accounts payable transactions. Which of the following is the most effective data analysis function that Barnes could use to look for potential fraud in accounts payable? Bennett, a fraud examiner, is performing textual analytics on journal entry data. He developed a list of fraud keywords to search for based on the three legs of the Fraud Triangle. Which of the following fraud keywords found in the journal entry text is the best indicator of pressure to commit fraud? Andrew wants to use a confidential informant in his investigation. He plans to compensate the informant with cash and obtain a receipt. He also plans to identify his source in a memo and his final report using only the informant’s initials. Which of Andrew’s plans is NOT considered a best practice when using an informant? When planning for the interview phase of an investigation, which of the following steps should NOT be taken by the fraud examiner? Which of the following is TRUE of a follow-up/recommendations section in a written fraud examination report? Which of the following is NOT one of the purposes of closing questions in a routine interview? Which of the following is NOT a common use of public sources of information? It is recommended that information in a fraud examination report be presented alphabetically with respect to parties and document titles. Why do fraud examiners perform analysis on unstructured, or textual, data? During an interview, Sam tells the fraud examiner he saw the subject in the supply room three times. As he continues, he begins to become confused as to whether he saw the subject on a fourth occasion and on what dates he saw the subject. Which of the following describes the communication inhibitor in this situation? Arnold, a Certified Fraud Examiner for Integra Wealth, learns that Keene, an accounts payable clerk, recently purchased an expensive ski boat. Arnold also knows that Keene recently purchased a vacation home on a nearby lake. Arnold has sufficient predication to: Thompson, a CFE, was hired to trace Keeler’s assets. To trace the assets, Thompson uses Keeler’s books and records to analyze the relationship between his receipt and subsequent disposition of funds or assets. Which tracing method did Thompson use? Jackson, a Certified Fraud Examiner, is beginning his interview of Randall. He thinks that Randall might have information about a coworker’s involvement in a fraudulent disbursement scheme. Before Jackson begins asking serious questions, what should he get from Randall? Which of the following is the MOST ACCURATE statement concerning the volatility of digital evidence? Which of the following is INCORRECT with regard to locating individuals using online records? Which of the following data analysis functions is used to determine whether company policies are met by employee transactions, such as verifying that traveling employees book their accommodations at approved hotels? Which of the following statements about how fraud examiners should approach fraud examinations is FALSE? Which of the following is NOT one of the main limitations of conducting a search for public records using online databases? Boyd, a CFE, was hired to trace Lott’s financial transactions. During his investigation, Boyd obtains records of electronic payments Lott made during the past five years. Which of the following are these records most likely to reveal? Which of the following is a common characteristic that asset hiders look for in the financial vehicles they use to conceal their assets? Misty, a fraud investigator, is interviewing Larry, who she suspects has been embezzling company funds. Which of the following is NOT a recommended sequence in which Misty should ask Larry questions? Christopher, a fraud examiner, is conducting an admission-seeking interview with Jennifer, an employee suspected of stealing cash. Which of the following is the LEAST effective phrasing for Christopher to use when posing an admission-seeking question to Jennifer? Which of the following situations would probably NOT require access to nonpublic records to develop evidence? Alana is the former girlfriend of Oscar, a fraud suspect. She approaches Bianca, a fraud examiner at Oscar’s company, and offers to provide critical information about Oscar’s fraud. However, she requests full confidentiality in return for her assistance. Which of the following is the most appropriate response for Bianca to make? Gilbert is preparing to conduct a covert investigation. Before acting, he wants to write a memo documenting his plan. Which of the following pieces of information should he include in this memo? Which of the following general statements about a fraud investigation plan is CORRECT? Which of the following sources of information is usually considered to be the MOST important in tracing a subject’s assets? Baker, a Certified Fraud Examiner, is assigned to the internal audit department of the ABC Company. He is getting ready to conduct an interview with another company employee who might be involved in a fraud. In general, what title should Baker use in his introduction to the employee? Elizabeth, a Certified Fraud Examiner, is conducting an admission-seeking interview with Shannon, a fraud suspect. Shannon is seated approximately five feet away from Elizabeth in an empty room. The room has one window, no wall hangings, and the door is closed. According to admission-seeking interview best practices, what change should Elizabeth make to the interview environment to increase the chances of the interview’s success? Which of the following is the most accurate statement about seizing a computer for examination? Baker, a Certified Fraud Examiner, contacts Delta for the purpose of conducting a routine, information-gathering interview. Delta expresses a desire that his coworker, Matthew, whom Baker also plans to interview, be interviewed at the same time. Baker should: Which of the following is a common method that fraudsters use to hide their ill-gotten gains? Susan, a Certified Fraud Examiner, is conducting an admission-seeking interview of Beth, a fraud suspect. After Susan gave Beth a suitable rationalization for her conduct, Beth continued her denials, giving various alibis. Which of the following would be the LEAST effective technique for Susan to use in this situation? When evidence of fraud arises, management should respond, in part, by: Which of the following is an example of a closed question? Which of the following is a reason why a subject’s credit card records are useful in tracing investigations? Which of the following is considered good practice when selecting the participants on a team assembled to investigate fraud? Which of the following is the most appropriate measure when seeking to avoid alerting suspected perpetrators who are under investigation? Maria, a fraud suspect, arrives at an interview with David, a fraud examiner, smelling of marijuana smoke. Maria’s apparent drug use will likely cause her behavioral clues to be: Tom is conducting a fraud examination for a company and suspects one of the company’s vendors (a one-person operation) of fraudulent billing. Tom wants to obtain a copy of the suspect individual’s credit report and personal data from a third-party information broker. If Tom works in a jurisdiction that regulates the distribution of personal credit information, he cannot obtain the suspect’s personal credit data under any circumstances. A fraud examiner contacts a witness regarding an interview. If the respondent says, “I’m too busy,” how should the fraud examiner react? Which of the following is NOT a step a fraud examiner must take before seizing evidence in a digital forensic investigation? Which of the following statements concerning real property records is MOST ACCURATE? Which of the following is NOT a purpose of an admission-seeking interview? Sarah is conducting an admission-seeking interview of a suspect. Throughout the interview, the suspect makes little eye contact with Sarah. Based on this information alone, can Sarah conclude that the suspect is being deceptive? Naveed, a fraud suspect, has decided to confess to Omar, a Certified Fraud Examiner. In obtaining a verbal confession from Naveed, Omar should obtain all of the following items of information EXCEPT: Which of the following is a unique challenge of cloud forensics not faced in traditional forensic practices? Fraud examination reports should be written with which of the following audiences in mind? If you are seizing a computer for forensic analysis, why is it generally necessary to seize any copiers connected to it? A law enforcement officer receives a reliable tip from an informant that a government employee is soliciting bribes in exchange for awarding contracts to the employee’s agency. To investigate, the officer poses as a potential contractor and contacts the suspect employee about the possibility of getting a contract with the agency. In the course of the conversation, the suspect demands a cash payment for the officer to be considered for upcoming contracts. If the suspect claims entrapment at trial, then which of the following is most likely to occur? Which of the following is a red flag indicating that a subject is seeking to conceal ill-gotten assets through a loan repayment? If your suspect is spending suspected illicit funds on consumables (e.g., travel and entertainment) and you need to prove his illicit income circumstantially, which of the following methods of tracing assets would yield the best result? Scarlett, a Certified Fraud Examiner, is conducting an admission-seeking interview of Plum, a fraud suspect. After Scarlett diffused Plum’s alibis, Plum became withdrawn and slowly began to slouch in his chair, bowing his head. What should Scarlett do now? During an interview of a fraud suspect, the interviewer states: “I can see why you altered the financial statements; you were trying to prevent the massive employee layoffs that would have followed the company’s financial collapse.” Which of the following best describes the facilitator that the interviewer is using? Which of the following is a reason why a person or organization might engage a fraud examiner to trace illicit transactions? Which of the following is an example of a leading question? Which of the following types of information would LEAST likely be found when searching external sources without the subject’s consent or a legal order? During an interview, Alex asked a fraud suspect if he could retrieve the suspect’s account records from his bank. The suspect said yes but did not provide consent in writing. Although the suspect orally consented, the suspect’s bank is not required to allow Alex to access the suspect’s account records at this point. Amanda needs to know the location of the principal office and the date of incorporation of a company she is investigating. Which of the following sources would most likely contain these items of information? An investigator is preparing to administer what is likely to be an intense and extended interview with a fraud suspect. To organize his thoughts prior to the interview, the fraud examiner should: Marilyn, a Certified Fraud Examiner, is reasonably sure that Shelly, her primary suspect, committed the fraud in question. Before scheduling an admission-seeking interview with Shelly, Marilyn should be reasonably sure of all of the following EXCEPT: Which of the following is the MOST ACCURATE statement regarding the analysis phase in digital forensic investigations? Which of the following statements about the process of obtaining a verbal confession is NOT true? While taking notes during an interview, the interviewer should do all of the following EXCEPT: If an important witness becomes hostile and argumentative during an interview, the interviewer generally should: Which of the following is the most accurate statement about fraud response plans? Which of the following should generally be included in a written fraud examination report? Kate is conducting an admission-seeking interview with Julian, a fraud suspect. During the interview, Julian unwittingly reveals incriminating information that could only be known by the offender. Which of the following statements is most accurate regarding how Kate should note this information? Which of the following is NOT a function of a fraud examination report? While studying key documents previously in a fraud suspect’s possession, a fraud examiner, who is also a forensic document examiner, discovers very faint written indentations on a blank page. Which of the following would be the BEST method for revealing the text of the indentations? Which of the following is a method of tracing assets that would yield the best result when several of the subject’s assets or liabilities have changed during the period under examination and the subject’s financial records are not available? Which of the following is considered a best practice for preserving the confidentiality of a fraud investigation? Steve, a Certified Fraud Examiner, was interviewing Mitchell, a fraud suspect. During the interview, Mitchell seemed preoccupied and unconcerned; he alternately chewed on his pen cap and picked at a loose piece of fabric on the arm of his chair during direct questions about the fraud. From this conduct, Steve is likely to conclude that Mitchell: Which of the following types of questions should the interviewer extensively use during the information phase of the interview? Which of the following is NOT an advantage to using link analysis in a fraud investigation? A fraud examiner suspects that an employee who is tasked with meeting new customers over business dinners to discuss their accounts is using those meetings to proposition the customers and steal business from his employer. If the fraud examiner wanted to pose as a new customer and meet with the employee, which of the following would best describe the fraud examiner’s method? Tim, a suspect in a kickback scheme, is being interviewed by Carlos, a fraud examiner. As the interview progresses, Carlos notices that Tim is exhibiting signs of stress, such as repeatedly touching his face, crossing and uncrossing his legs, and darting his eyes around the room. Carlos should conclude that Tim’s behavior is the result of deception. Talia has been hired by SBS Inc. to implement a new data analysis program to search for warning signs of potential fraud within the company. Which of the following steps should Talia conduct first to most effectively use data analysis techniques for such an initiative? Mary, the payroll manager at Reed Co., suspects that there might be a ghost employee scheme occurring. She wants to ensure no two employees on the payroll have the same government identification number. Which of the following data analysis functions would be most useful for this test? When a fraud examiner is conducting an examination and is in the process of collecting documents, he should: Bob wants to search the Internet for information on Ponzi schemes. He searches the phrase “Ponzi schemes,” enclosed by quotation marks, in a search engine. What results will this search produce? While executing a search warrant on a suspect’s home, a fraud examiner discovers a document that appears to have indented writings on it and that likely contains a latent fingerprint, both of which would be useful evidence. Which of the following statements is INCORRECT? Toole, a CFE, is searching social media sites for evidence in a fraud investigation. Which of the following is the MOST ACCURATE statement regarding what Toole should do when mining social media sites for evidence of fraud? Janet suspects that a local restaurant is being used as a front business for a criminal operation. Which of the following types of records would be the MOST likely to help Janet discover who owns the restaurant building? Which of the following is a recommended strategy when conducting admission-seeking interviews? Which of the following terms refers to a process of resolving allegations of fraud from inception to disposition? Which of the following statements concerning chain of custody is CORRECT? Tyson, a fraud examiner, is planning an interview with George, the boyfriend of the central suspect in Tyson’s investigation. Previous interviews with others have revealed that George tends to be very protective of his girlfriend. How should Tyson approach the interview with George? Which of the following types of data is best suited for a Benford’s Law analysis? Which of the following questions would be most effective when starting the calibration process during an interview? Which of the following is the MOST ACCURATE statement about the privacy of information shared through social media? Sam needs to obtain the most accurate court records possible in a particular jurisdiction concerning a fraud suspect. The best place for Sam to look is a global database that compiles court cases from various jurisdictions. An investigator for a country’s criminal investigative body is conducting a criminal investigation into suspected bribery by a local government official and needs to compel the production of documents located in a foreign country. The two governments have entered a treaty by which they agree to assist one another in criminal law enforcement matters. Which of the following should the investigator use to obtain the documents? Which of the following is NOT true with regard to tracing the disposition of loan proceeds? Which of the following is NOT one of the basic types of informational questions interviewers use to gather unbiased factual information? Which of the following is NOT a good practice when searching the Internet for information? Vishal, a Certified Fraud Examiner, has just initiated an interview with Steve, a fraud suspect. After a short introduction, Vishal jokes about the fact that he and Steve are wearing the same tie and then proceeds to ask Steve about the previous night’s major sporting event. Vishal is attempting to: Martin, a fraud examiner, is conducting an interview of Stephen, a fraud suspect. Although Stephen heard all of the questions during the introductory part of the interview, he began asking Martin to repeat almost every question when they became more focused. If Stephen is being deceptive, which of the choices below is most likely the cause of Stephen’s behavior? Hudson is investigating Ejecta Corporation and is able to obtain a copy of the account opening documents for Ejecta’s commercial bank account. Which of the following documents is Hudson most likely to find in these records? Jackson, a forensic investigator for a government agency, is conducting a criminal investigation into the alleged embezzlement of funds from the government’s Welfare Department (WD). Gordon, a WD employee, is the prime suspect. Jackson obtains a court order authorizing him to seize Gordon’s personal computer for forensic examination. Which of the following is the MOST ACCURATE statement? Which of the following types of files is the most difficult to recover during a digital forensic examination? Beta, a Certified Fraud Examiner, is conducting an admission-seeking interview of Delta, a fraud suspect. In establishing a rationalization, Beta said to Delta: “I know you didn’t do this for yourself; it was for your family.” This technique seeks to establish rationalization by: Which of the following is the most accurate statement about Financial Intelligence Units (FIUs)? Which of the following statements concerning access to nonpublic records is MOST ACCURATE? Stephen is investigating the assets of ABC Shipping Corporation and wants to discover who financed the company’s new office furniture and computers. Which of the following sources, if available, would be most effective for finding this information? Cynthia, a forensic investigator, is investigating Tony for alleged conspiracy and fraud in connection with the sale of land. Cynthia suspects that Tony used steganography to hide communications amongst members of his criminal conspiracy in image files. Cynthia has seized Tony’s personal computer, and she plans to analyze it for communications hidden in image files. Which of the following is a method that Cynthia can use to detect the use of steganography? Butler, a CFE, needs to obtain a copy of a statement that the CEO of Accord Investments, a venture capital firm, posted on the firm’s website sometime last year. Unfortunately, the quote has been removed from the website. Which of the following resources should Butler consult to find an earlier version of the Web page he needs? Which of the following is TRUE about observing the reactions of interview subjects? Which of the following pieces of information is usually contained on the signature card of a personal bank account? Orlando is conducting a fraud examination regarding Fast Freight, a large publicly traded corporation, and wants to find the current officers and directors of the company. Which of the following would be the best source of information for this purpose? |
References
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