ACFE Updated CFE-Investigation Exam Questions and Answers by fraser

According to the 2014 International Fraud Examiners Manual:

“The term fraud examination refers to a process of resolving allegations of fraud from inception to disposition, and it is the primary function of the anti-fraud professional. The fraud examination process encompasses a variety of tasks that might include:

• Obtaining evidence

• Reporting

• Testifying

• Assisting in fraud detection and prevention”.

Similarly, in the CFE Prep - Investigations study guide:

“Fraud examination is best described as… a methodology for resolving fraud allegations from inception to disposition. The term fraud examination refers to a process of resolving allegations of fraud from inception to disposition, and it is the primary function of the anti-fraud professional”.

This clearly verifies that fraud examination is the correct term for the process of resolving fraud allegations from beginning (inception) to end (disposition).

Therefore, the correct answer is D. Fraud examination.

The Fraud Examiners Manual states:

“The expenditures method works best when the subject spends illicit income on consumables (e.g., travel and entertainment), because when the subject spends the illicit income, it will not cause an increase in net worth.”

CFE Prep confirms:

“The expenditures method … is best used when the subject spends illicit income on consumables (such as travel and entertainment) that would not cause an increase in net worth.”

Thus, the correct answer is A.

“When searching for an individual, the fraud examiner should obtain a past address of the subject, and search activities should begin with that information”.

Therefore, saying a past address is “of no help” is incorrect.

The Fraud Examiners Manual states:

“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.