ACFE Updated CFE-Investigation Exam Questions and Answers by fraser

The manual notes:

“Records subpoenaed in a criminal case usually are available only to the government during the investigation, and perhaps thereafter if not disclosed at trial”.

Thus, statement D is false.

During admission-seeking interviews, when suspects persist with denials or alibis, examiners are trained to diffuse them. Accepted techniques include:

Discussing testimony of witnesses,

Displaying physical evidence, and

Downplaying the strength of evidence.

However, manuals caution that discussing a suspect’sprior deceptionsis not an effective or recommended method to diffuse alibis. It risks confrontation and may damage rapport, reducing chances of confession.

Therefore, optionCis the exception.

The2014 Fraud Examiners ManualandCFE Preplist common concealment methods:

“Some common techniques for hiding assets include transferring assets into foreign trusts, overpaying taxes, prepaying on a home mortgage, obtaining a life insurance policy, and transferring assets into someone else’s name.”

Thus, the correct answer isD.

TheFraud Examiners Manuallistsspecific queries for accounts payable analysis, including:

“Review recurring monthly expenses and compare to posted/paid invoices.”.

While comparing book vs. tax depreciation applies toasset management(not A/P), and identifying paycheck anomalies applies topayroll(not A/P), the most effective A/P-specific test is the recurring expense comparison. Hence,Cis correct.