ACFE Updated CFE-Investigation Exam Questions and Answers by efa

The Fraud Examiners Manual defines double-negative questions as those containing two forms of negation in a single clause. They are confusing and “often suggest an answer opposite to the correct one.” The example given is almost identical to the question here:

“Didn’t you suspect that something wasn’t right?”.

Thus, Sylvia’s question is a double-negative question, which should be avoided.

CFE guidance on tracing illicit transactions explains that financial institution records—especially account statements—are among the most important sources for tracing because they can reveal transfers, counterparties, and leads to additional evidence. In the cryptocurrency context, the Manual specifically notes that when reviewing account statements, fraud examiners should look for transactions involving cryptocurrency exchanges and for payments to or deposits from such exchanges. Those banking “on-ramps/off-ramps” can connect a real-world identity (account holder) to crypto activity and help establish ownership or control indicators (e.g., exchange deposits/withdrawals, recurring transfers, related payment records). Option B is incorrect because public blockchains show transactions and addresses, but they generally do not contain direct personal identifiers. Option C is too broad and not supported as a “most accurate” statement across jurisdictions; requirements vary and many exchanges apply identification controls. Option D is incorrect because the Manual states that most cryptocurrencies rely on public blockchains that make transactions visible, not private blockchains. Therefore, A is the most accurate statement: ownership clues can sometimes be derived from bank statements that show exchange-related activity and related financial footprints.

“To locate people using online records… First, when searching for an individual, the fraud examiner should obtain a past address of the subject, and search activities should begin with that information”.

This aligns with the Prep guide: “Obtaining a past address of the subject should be the first step in trying to locate a subject using online records”.

Thus, B is correct.

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 is compliance verification.