Investigation Flashcards
7 cards from real ACFE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Investigation flashcards as text
During a fraud investigation, which type of interview is typically conducted first to gather preliminary information without alerting the suspect?
Answer: Informational interview
Informational interviews are conducted early in an investigation to gather facts from witnesses and peripheral parties without disclosing suspicions.
What is the primary purpose of a 'net worth analysis' in a fraud investigation?
Answer: To identify unexplained increases in a subject's wealth
Net worth analysis compares changes in a subject's net worth over time to identify wealth that cannot be explained by reported income, suggesting hidden income from fraud.
Which legal doctrine allows investigators to examine financial records without a subpoena if a third party (such as a bank) voluntarily produces them?
Answer: Third-party doctrine
The third-party doctrine holds that individuals have no reasonable expectation of privacy in records voluntarily shared with third parties like banks.
When an investigator discovers that a suspect used a shell company to conceal fraud proceeds, which technique is MOST appropriate to trace the funds?
Answer: Link analysis
Link analysis maps relationships between entities, people, and transactions to reveal hidden connections such as shell company ownership.
A fraud examiner is reviewing emails for evidence. Which chain of custody step is MOST critical when collecting digital evidence?
Answer: Creating a forensic image of the original media
Creating a forensic image preserves the integrity of digital evidence and ensures the original data is not altered, maintaining chain of custody.
Which element distinguishes a 'predication' from mere suspicion in launching a fraud investigation?
Answer: A credible indication that fraud may have occurred
Predication is the totality of circumstances that would lead a reasonable professional to believe fraud has occurred, is occurring, or will occur—it does not require proof.
Under the ACFE Code of Professional Standards, a fraud examiner must NOT do which of the following during an investigation?
Answer: Express an opinion on guilt or innocence in a written report
ACFE standards prohibit fraud examiners from expressing personal opinions about a subject's guilt or innocence in written reports, as that determination belongs to courts.