CFE-Investigation Exam Dumps - ACFE Certified Fraud Examiner Questions and Answers

TheFraud Examiners Manualstates:

“The expenditures method works best when the subject spends illicit income on consumables (e.g., travel and entertainment), because when the subject spends the illicit income, it will not cause an increase in net worth.”

CFE Prepconfirms:

“The expenditures method … is best used when the subject spends illicit income on consumables (such as travel and entertainment) that would not cause an increase in net worth.”

Thus, the correct answer isA.

Explanation: TheFraud Examiners Manualnotes that predictive modeling and data analysis allow fraud examiners to detect fraud by usinghistorical data to forecast future trends and anomalies. This matches optionB.

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 iscompliance verification.

Body language alone (e.g., avoiding eye contact) cannot be taken as proof of deception. The Manual warns against drawing conclusions from a single behavioral cue:

“Avoiding eye contact isnot directly linked to deception. Such behavior could stem from cultural norms, nervousness, or personality traits. Examiners should consider clusters of behavior, context, and corroborating evidence before concluding deception”.

Therefore,Cis correct.

TheFraud Examiners Manualexplains:

“Textual analytics is a method of using software to extract usable information from unstructured text data… it cancategorise data to reveal patterns, sentiments, and relationships indicative of fraud”.

This is the key reason fraud examiners analyze textual/unstructured data.

TheFraud Examiners Manualclarifies:

“The recommendations section is optional, and there might be instances where the fraud examiner wishes to discuss remedial measures or specific recommendations in a separate document”.

The Prep guide also states: “A written report might include a section for recommendations”.Thus, it isnot requiredin every report.

Explanation with Extracts= TheFraud Examiners Manualexplains:

“Forensic analysis should not be performed on suspect devices directly because doing so can alter or damage digital evidence, and imaging the data… allows a fraud examiner to view and analyse the contents of a computer without altering the original data in any way”.

Imaging creates an exact, sector-by-sector copy of the drive.

Thus, imaging protects original data integrity.

Detailed Explanation with Extracts= The Fraud Examiners Manual states:

“When reporting the results of a fraud examination, it is best to include copies (not originals) of important documents in the formal report”.

Originals should be safeguarded separately for evidence; reports should use copies.

Therefore, the statement is true.

Best practices for admission-seeking interviews emphasize building rapport, presenting a morally acceptable reason, and maintaining empathy to encourage a confession. The manual states examiners should “present a morally acceptable reason for the suspect’s behavior” and avoid creating hostility . Minimizing empathy is counterproductive andnot recommended.

“Introductory questions should be designed to establish rapport… Interviewers usually establish rapport by spending a few minutes with the respondent in an informal dialogue”.

Jason’s small talk about sports and compliments is clearly rapport building