[2026] Use Real ACFE Dumps - 100% Free CFE-Investigation Exam Dumps
Realistic CFE-Investigation Dumps Latest ACFE Practice Tests Dumps
To earn the CFE-Investigation certification, candidates must pass a rigorous exam that covers four main areas: financial transactions and fraud schemes, law, investigation, and fraud prevention and deterrence. CFE-Investigation exam consists of 125 multiple-choice questions and is administered over a four-hour period. Candidates must achieve a minimum score of 75% to pass.
NEW QUESTION # 29
Al needs to know the location of the principal office and the initial shareholders of a company he is investigating. Which of the following would be the BEST source of this reformation?
- A. The contractual documents regarding real properly owned by the corporation
- B. The organizational filings with the government of the jurisdiction in which the company is incorporated
- C. The utility records in the municipality where the corporation has its principal office
- D. The shareholder data form filed with the World Bank
Answer: B
NEW QUESTION # 30
Management at Oak Company has asked Arthur, an internal auditor, to implement a data analysis program to search for warning signs of potential fraud within the company. Which of the following steps should Arthur conduct first to MOST effectively use data analysis techniques for such an initiative?
- A. Obtain the data.
- B. Analyze the data.
- C. Build a profile of potential frauds.
- D. Cleanse and normalize the data
Answer: C
NEW QUESTION # 31
Tom, a Certified Fraud Examiner (CFE) was hired to trace Keeley's assets, To trace the assets, Tom uses Keeley's Books and records to analyze the relationship between the receipt and subsequent disposition of funds or assets. Which tracing method did Tom use?
- A. The comparative assets method
- B. The indirect method
- C. The direct method
- D. The asset method
Answer: A
NEW QUESTION # 32
When planning for the interview phase of an investigation, which of the following steps should NOT be taken by the fraud examiner?
- A. Ensure that the interview is held in a venue where the subject will feel Uncomfortable
- B. Consider what the interview is intended to accomplish and state an objective.
- C. Review the case file to ensure that important information has not been overlooked
- D. Prepare a detailed list of questions to ask the subject during the interview.
Answer: A
Explanation:
The Manual emphasizes that interviews should be held where the respondent feelscomfortable and secure, not threatened:
"When possible, the interview should be held in a venue where the subject will feel comfortable and secure".
Holding it in an uncomfortable setting is counterproductive and contrary to best practices.
NEW QUESTION # 33
Misty, a fraud investigator is interviewing Larry, who she suspects has been embezzling company funds.
Which of the following is NOT a recommended sequence in which Misty should ask Larry question?
- A. Stat with questions about known information and work toward unknown information
- B. Ask questions seeking general information before seeking details
- C. Ask questions in random order to prevent Larry from knowing what question comes next
- D. Start with general questions and move toward specific questions
Answer: B
NEW QUESTION # 34
Which of the following statements is MOST ACCURATE regarding covert operations?
- A. Most jurisdictions provide protections for investigators conducting covert operations that shield them from reputational, financial, and legal consequences.
- B. Mistakes in covert operations generally do not cause damage to their associated investigations
- C. Fraud examiners should conduct coven operations only after attempting conventional methods of evidence-gathering
- D. Covert operations rarely prove beneficial to investigations even when planned properly.
Answer: C
Explanation:
The Fraud Examiners Manual makes clear that covert operations areextraordinary measuresthat require high skill and planning and should be used only when no other practical method is available. They carry significant risks, includingembarrassment, liability, and even injury or death. Therefore, covert operations should not be the first resort but instead follow conventional evidence-gathering efforts.
NEW QUESTION # 35
Which of the following questions would be most effective when starting the calibration process during an interview?
- A. Did you commit any misconduct against the company?"
- B. 'How many jobs have you had before this one?'
- C. "Do you know what the punishment is for violations like this?"
- D. 'Do you know who might have defrauded the company?'
Answer: C
NEW QUESTION # 36
Leslie, a fraud examiner for ACME Corporation, suspects that a salesperson for another company has defrauded ACME. Leslie wants to obtain a copy of the suspect individual's credit report and personal data from a third-party information broker If Leslie works in a jurisdiction that regulates the distribution of personal credit information, she generally can obtain the information if she has the consent of the individual.
- A. False
- B. True
Answer: B
Explanation:
"In jurisdictions that regulate credit information and personal data, a fraud examiner will generally need a legally acceptable reason for accessing such information from third parties... some common circumstances include when: the individual has given consent".
Thus, with the individual's consent, Leslie could obtain the report.
NEW QUESTION # 37
Which of the following BEST describes the data analytics approach known as predictive analytics?
- A. The use of layered artificial neural networks to accommodate more data and more sophisticated algorithms to identify complex patterns
- B. The use of historical data, along with analyses, statistics, and machine learning components, to build a mathematical model that captures important trends and creates a quantitative forecast
- C. The employment of computer systems to perform human-like tasks such as visual perception and decision-making
- D. The configuration of a business program to emulate and Integrate the actions of a human to execute certain business processes, thus increasing efficiency and automating repetitive manual tasks
Answer: B
Explanation:
The Fraud Examiners Manual notes that predictive modeling and data analysis allow fraud examiners to detect fraud by using historical data to forecast future trends and anomalies. This matches option B.
NEW QUESTION # 38
Which of the following is the MOST ACCURATE statement about the privacy of information shared through social media?
- A. To access any user-posted information on social media sites fraud examinees must obtain some type of legal order from the Jurisdiction in which the user resides.
- B. A fraud examiner cannot be held liable for violating a user's privacy rights if they hack or break into areas of a social networking site designated as private because all social media Information is public
- C. the Privacy of Social Networks Treaty is a binding international treaty that makes it illegal for law enforcement to seek social media login credentials from users.
- D. Hacking or breaking into information on social media sites that is restricted as private could result in liability for fraud examiners due to violation of users privacy rights
Answer: C
NEW QUESTION # 39
Which of the following is the LEAST ACCURATE statement about seizing a computer for examination?
- A. Before removing a computer system from a scene for further analysis, it is important to document the system's setup with photographs or diagrams.
- B. When seizing a computer for examination, the seizing party should took around the area for passwords because many people leave passwords near their computers
- C. When taking a computer for examination, if the computer is off. it should remain off when it is removed.
- D. When seizing a computer that is running, it is acceptable for a fraud examiner to review the files contained on the machine prior to seizing it.
Answer: D
Explanation:
The manual states:
"When seizing a computer that is running, the party seizing the system should not, in most situations, search the computer for evidence because doing so might damage and taint relevant evidence." Thus,B is the least accurate statement.
NEW QUESTION # 40
Delta, an Interviewer with little experience asks Sigma the respondent the following question. "Were you aware that the signature was forged and why didn't you tell anyone earlier?
This kind of question Is cased a______________ question.
- A. Complex
- B. Free narrative
- C. Controlled answer
- D. Double-negative
Answer: D
NEW QUESTION # 41
Barnes, a Certified Fraud Examiner (CFE). is using data analysis to identify anomalies that might indicate fraud in XYZ Company's accounts payable transactions. Which of the following is the MOST EFFECTIVE data analysis function that Barnes could use to look for potential fraud in accounts payable?
- A. All of the above
- B. Identify paycheck amounts over a certain limit
- C. Review recurring monthly expenses and compare to posted/paid invoices
- D. Compare book and tax depreciation and indicate variances
Answer: C
Explanation:
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.
NEW QUESTION # 42
Which of the following is one of the purposes of closing questions in a routine interview?
- A. To reduce testimony to a signed, written statement
- B. To close the interview positively and maintain goodwill
- C. To confirm the credibility of the witness being interviewed
- D. To assess whether the subject is ready to confess
Answer: B
Explanation:
The2014 Fraud Examiners ManualandCFE Prepexplain:
"Closing questions seek to close the interview positively. In routine interviews, closing questions serve the following purposes: reconfirm facts, gather additional facts, and conclude the interview in a manner required to maintain goodwill." Thus, the correct answer isA.
NEW QUESTION # 43
Jackson, a Certified Fraud Examiner (CFE). is analyzing Elm Company's accounts payable data to identify anomalies that might indicate fraud. Which of the following is the MOST EFFECTIVE data analysis function that Jackson could use to look for potential fraud in accounts payable?
- A. All of the above
- B. Identify paychecks with amounts over a certain limit
- C. Summarize large invoices by amount and vendor
- D. Compare book and tax depreciation and indicate variances
Answer: C
Explanation:
The2014 International Fraud Examiners Manualprovides examples of data analysis for accounts payable:
"Examples of data analysis queries that can be performed to help detect fraud through examination of accounts payable include:
* Audit paid invoices for manual comparison with actual invoices.
*Summarise large invoices by amount, vendor, etc.
* Identify debits to expense accounts outside of set default accounts.
* Reconcile cheque registers to disbursements by vendor invoice."
While other functions apply to payroll or asset management, themost effective function for accounts payable fraud detection is tosummarize large invoices by amount and vendor.
NEW QUESTION # 44
Marcus is trying to locate the financial statements of Acme Airlines, a multinational publicly traded corporation. Which of the following sources would be MOST EFFECTIVE for finding this information?
- A. Regulatory securities records
- B. Organizational filings
- C. Commercial filings
- D. Civil litigation records
Answer: A
Explanation:
"Securities regulators... require disclosures that typically include: corporate financial statements, identification of officers and directors, identification of significant owners... and a history of the business"
#10:2014 International Fraud Examiners Manual.pdf L73-L95#.
Thus, regulatory securities records are the best source for financial statements.
NEW QUESTION # 45
Tony, a fraud examiner, believes that vendors might be submitting multiple invoices for the same sales with the hope that they will be paid more than once. He wants to ensure that no two invoices in the system have the same number. Which of the Mowing data analysis functions would be most useful for this test?
- A. Correlation analysis
- B. Linear regression
- C. Benford's Law analysis
- D. Duplicate search
Answer: D
Explanation:
The Fraud Examiners Manual states:
"Duplicate testing is used to identify transactions with duplicate values in specified fields ... fields such as cheque numbers, invoice numbers, and government identification numbers ... searching for duplicates within these fields can help the fraud examiner find anomalies that merit further examination".
This directly addresses Tony's need to ensure no two invoices have the same number.
NEW QUESTION # 46
Martin is a fraud examiner. He contacts Dianne for the purpose of conducting a routine, information-gathering interview. Dianne says that she wants her coworker. Sheila, whom Martin also plans to interview, to be present during the interview. Martin should:
- A. Interview Dianne and Sheila together, but bring in a second interviewer
- B. Allow Sheila to be present but only if she does not speak
- C. Interview Dianne and Sheila together by himself
- D. Interview Dianne and Sheila separately
Answer: D
Explanation:
Best practice is to conduct interviewsindividually. The Manual states:
"When conducting interviews, witnesses should beinterviewed separately. Interviewing multiple witnesses together risks contamination of testimony and reduced reliability of responses".
NEW QUESTION # 47
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