CFE-Investigation Dumps with Practice Exam Questions 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.

According to theCFE Prep - Investigationsstudy guide:

“It is recommended that any witnesses who are considered potentially volatile be interviewed without advance notice. Surprise should be employed in any interview that is considered potentially volatile. In many instances, the potentially volatile respondent is unaware that he is going to be questioned, and will therefore be unprepared. If the interview is not conducted by surprise, the interviewer runs the risk of the respondent not showing up, showing up with a witness, or being present with counsel. A target’s friends, relatives, and romantic interests often make for a difficult interview. They perceive that the fraud examiner is deliberately targeting someone close to them.”

????Interpretation for this scenario:

Brianna is described asvery protective of her boyfriend, making her a potentiallyvolatile witness.

Best practice is to avoid giving heradvance notice(which might increase hostility, resentment, or allow preparation).

Conducting the interviewwith little or no noticereduces the risk of interference, ensures she is unprepared, and prevents her from appearing with legal counsel or allies.

The Fraud Examiners Manual explains that recommendations in a report areoptional, not mandatory. When included, they should cover remedial measures such as control reviews or increased security.

“Finally, the fraud examiner might decide to include a section for recommendations. The recommendations section should containremedial measures or specific recommendations for follow-up actions… This section is optional”.

Therefore,Cis correct. Options A and D are incorrect because recommendations are not required in every report, and B misstates its purpose.

The2014 International Fraud Examiners ManualandCFE Prep - Investigationsexplicitly state:

“Like some printers, copiers and other multifunction machines might have internal storage devices that store relevant data. In fact, almost every copier built since 2002 has a hard drive that stores images of documents the machines have copied, scanned, or emailed. Some copiers store user access records and a history of copies made. … when seizing a computer for forensic analysis, it is generally necessary to seize any copiers and scanners connected to it.”

Thus, the correct answer isC.

“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.