CFE - Investigation

Review 168 CFE-INVESTIGATION practice questions with answer explanations and community insights.

Question 1

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?

  1. Compare book and tax depreciation and indicate variances
  2. Identify paycheck amounts over a certain limit
  3. Summarize large invoices by amount and vendor
  4. All of the above

Question 2

Which of the following BEST describes the data analytics approach known as predictive analytics?

  1. 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
  2. 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
  3. The use of layered artificial neural networks to accommodate more data and more sophisticated algorithms to identify complex patterns.
  4. The employment of a learning algorithm that identifies similarities, patterns, or anomalies within a data set on its own without human involvement.

Question 3

Jade, a Certified Fraud Examiner (CFE), is conducting an internal investigation in which an employee is suspected of stealing inventory and selling it through a possible shell company called Hidden Finds, LLC. When Jade tries to check Hidden Finds’ website, a message appears that redirects customers to a web address that ends with .onion. To view the website’s consent, Jade will need to install a specialized web browser that enables her to access which of the following?

  1. The internet archives
  2. The dark web
  3. The free web
  4. The deep archives

Question 4

Which of the following is NOT a common use of public sources of information?

  1. Corroborating or refuting witness statements
  2. Obtaining background information on individuals
  3. Locating people and their assets
  4. Searching an individual’s income tax fillings

Question 5

Anne used Will as a confidential informant in her investigation. Anne listed information provided by Will in her final report, referring to him using his initials. She paid Will in cash and obtained a receipt for the transaction. Which of Anne’s methods was NOT considered a best practice when using informants?

  1. Using information provided by Will in her report
  2. Using cash to pay Will
  3. Obtaining a receipt from Will
  4. Referring to Will using his initials
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