ACFE Updated CFE-Investigation Exam Questions and Answers by fredrick

TheFraud Examiners Manualstates:

“If a business or individual constructs a new building or makes improvements to an existing building, there should be a building permit on file with the local building authority. In many cases, the person applying for permits will be the owner or someone traceable to the owner.”

CFE Prepsupports this:

“Building permit records… are often required before most businesses can open… and often list the owner or someone traceable to the owner.”

Thus,building permit recordsare most likely to help identify the restaurant’s owner.

“Once a suspect utters a denial, it becomes extremely difficult… therefore, the interviewer mustprevent an outright denial. Fraud examiners can use several techniques to stop or interrupt denials, includingdelays, repeated interruptions, and reasoning”.

Thus, the correct answer isD.

TheFraud Examiners Manualexplains:

“Benford’s Law applies to data that is not assigned (such as IDs or phone numbers) but that occurs naturally in transactions. For example, payment amounts, invoice values, and expense reimbursements are well suited.”

Thus,payment amountsare best suited for Benford’s Law.

TheFraud Examiners Manuallists required steps before seizing evidence:

Obtain legal authority.

Review privacy issues.

Ensure software/hardware are validated.

Document surroundings, inspect for traps, image drives, etc.

There isno requirementto assemble a team exclusively of outside experts.

Before seizing evidence in adigital forensic investigation, the2014 International Fraud Examiners Manualoutlines several critical steps:

Obtain legal authority / review orders:

“Before obtaining evidence, ensure that there is legal authority to seize evidence and review the data associated with the evidence. This might require obtaining a warrant in a criminal matter or ensuring that internal policies authorise seizure for an internal investigation.”

Determine privacy issues:

“Before the fraud examiner can seize evidence, he must take certain steps to help ensure that the evidence will be admissible: He must determine whether there are any privacy interests in the item(s) to be searched… In every case where it becomes necessary to seize a computer or other device capable of storing digital evidence, the investigator should consult with legal counsel.”

Use only trained professionals/software:

“It is important to allow a trained examiner to conduct a proper seizure and examination of digital evidence to help ensure that the information can be used in a legal proceeding.”

✅These are allvalid required steps.

In contrast, the idea that the team must be composedonly of outside digital forensic expertsisNOT a required step. The Manual stresses flexibility in team composition:

“Some organisations have their own in-house personnel… while others might prefer the use of an outside examiner. Sometimes retrieving digital data is as easy as searching the target computer’s hard drive, but other times retrieval requires a thorough knowledge of computers.”

Thus, requiringonly outside expertsis not a standard step, since investigations may useinternal, external, or a mixof specialists depending on the situation.