CFE - Investigation

CFE - Investigation practice questions, page 6 of 7, with answer review and explanations.

Question 26

Lisa, a fraud examiner at a private company, receives an anonymous call from a potential whistleblower. The whistleblower is hesitant to reveal their identity but will do so if it can be kept fully confidential. Which of the following statements is MOST ACCURATE?

  1. Lisa may promise the whistleblower full confidentiality, even if she knows her statement is untrue, because the lie is ultimately beneficial to her employer.
  2. Lisa should explain that she will try her best to keep the whistleblower’s identity confidential.
  3. Lisa should state that she will not be able to keep the whistleblower’s identity confidential because all information must be disclosed to management.
  4. Lisa may offer the whistleblower full confidentiality because they are not a suspect.

Question 27

Which of the following questions is MOST helpful for fraud examiners to ask themselves when determining the legality of electronically recording a conversation?

  1. “How long is the anticipated recording expected to last?”
  2. “Will the recorded conversation take place before or after work?”
  3. “Can the recording include both audio and video?”
  4. “Will the recording equipment produce a digital file?”

Question 28

Which of the following is a reason why a person or organization might engage a fraud examiner to trace illicit transactions?

  1. An employer wants to know if an employee is falsifying regulatory reports.
  2. An entity needs to find hidden relationships in big data that otherwise would not be discovered.
  3. A victim of fraud wants to facilitate the recovery of criminal proceeds.
  4. An attorney wants to evaluate an expert’s financial report.

Question 29

Talia has been hired by SBS Inc. to implement a new data analysis program to search for warning signs of potential fraud within the company. Which of the following steps should Talia conduct first to MOST effectively use data analysis techniques for such an initiative?

  1. Cleanse and normalize the data.
  2. Identify the relevant data.
  3. Build a profile of potential frauds.
  4. Monitor the data.

Question 30

Which of the following can be obtained from a wire transfer record?

  1. The name of the receiving institution’s registered agent
  2. The sending institution’s accreditation type
  3. The name of the sender or originator
  4. The recipient’s government identification number