ACFE Updated CFE-Investigation Exam Questions and Answers by jeremy

The Fraud Examiners Manual defines compliance verification as:

“Compliance verification determines whether company policies are met by employee transactions. For example, when employees are out of town, do they adhere to the company policy of not spending more than $30 a day for meals?” .

Thus, the correct function iscompliance verification.

TheFraud Examiners Manualadvises avoiding prematurely alerting perpetrators. Recommended methods include:

“Conducting investigations at times when the suspect is not present (such as nonbusiness hours)”.

This avoids tipping off suspects.

“Electronic payment records can be valuable in tracing investigations… they can reveal, among other things,assets the subject has purchased”.

They can also reveal loans, real estate taxes, and business locations, but not directly whether Lottie is “skimming” funds.

The Fraud Examiners Manual states that admission-seeking interviews should avoid yes/no questions like“Did you steal the money?”because they encourage denials. Instead, the question should be phrased as if guilt has already been established. The Manual explicitly warns:

“The accusation should be made in the form of a statement; it should not be made in the form of a question… Avoid emotive words such as steal, fraud, and crime… Example:‘It is not so much a question of what you did, but why you did it.’”

Thus, the most effective admission-seeking phrasing is:“Why did you take the money?”because it presumes involvement and encourages explanation rather than denial.