Important ACFE CFE-Investigation Exam Questions

Answer: B

Explanation:

The best practices for signed statements include:

Adding omitted facts as an addendum.

Preparing separate statements for unrelated offenses.

Having witnesses to the signing.

But:

''The signed statement should be reduced to a short and concise written statement. The interviewer should prepare the statement and present it to the confessor for his signature'' .

Thus, requiring the suspect to handwrite the entire statement is not a best practice.

Answer: A

Explanation:

The 2014 International Fraud Examiners Manual states:

''Asset hiders look for certain characteristics in the financial vehicles they use to conceal assets. Asset hiders want products that are liquid (i.e., items that can be purchased and sold in a short period of time). Moreover, asset hiders want products that are difficult to trace or untraceable. With such instruments, asset hiders can break or muddy links between the initial receipt of the assets and their final disposition. Asset hiders also look for products that are secure and accessible.''

The CFE Prep - Investigations guide confirms:

''Asset hiders want products that are liquid, difficult to trace, secure, and accessible... NOT transparent.''

Interpretation:

Accessibility = common desirable trait (correct).

Transparency = opposite of concealment (not desirable).

Exclusivity = not a standard consideration.

Traceability = asset hiders want the opposite (difficult to trace).

Answer: B

Explanation:

''Signs of stress do not always mean that a subject is lying... While lying and deception do cause stress, it is not necessarily true that all stress exhibited during an interview is caused by lying''.

The Prep guide confirms: ''While lying and deception do indeed cause stress, it is not necessarily true that all stress exhibited during an interview is caused by lying''.

Therefore, Carlos should not automatically conclude deception from stress behaviors.

Answer: A

Explanation:

The Fraud Examiners Manual stresses 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 records for every interview .

Answer: B

Explanation:

CFE methodology stresses that fraud examinations should be conducted with the assumption that the matter could end in litigation, which directly affects evidence-handling decisions. If litigation is reasonably anticipated, organizations often must preserve potentially relevant records through measures such as litigation holds and suspension of normal record-retention/destruction practices. Disposing of evidence while litigation is likely (or while a duty to preserve could exist) can create serious consequences, including sanctions, adverse inferences, monetary penalties, and other legal repercussions for spoliation or failure to preserve evidence. Because the central risk is future legal proceedings---civil, criminal, regulatory, or employment-related---the most important consideration when deciding whether evidence can be disposed of is whether additional litigation is likely or could reasonably arise. The physical form of evidence (A) affects preservation techniques, but it is not the key decision driver for disposal. Reporting summaries (C) do not replace original evidence. Whether evidence is direct or circumstantial (D) is not the deciding factor; both can be critical depending on the case. Thus, likelihood of future litigation is the most important factor.