CFI Investigative Methodology & Crime Scene Analysis Flashcards

When conducting a financial investigation, the 'net worth method' is used to:

Answer: Detect unreported income by comparing increases in net worth with reported income

The net worth method detects hidden income by analyzing unexplained increases in a subject's net worth versus their reported earnings.

The 'source and application of funds' method in financial investigations:

Answer: Identifies unexplained cash flows by comparing income sources with all expenditures

This method identifies financial discrepancies by comparing all known fund sources against all known applications of those funds.

What does 'modus operandi' (MO) analysis help investigators determine?

Answer: Patterns in how a perpetrator commits crimes that can link multiple incidents

MO analysis identifies behavioral patterns in crime commission that can link separate incidents to the same perpetrator.

In workplace investigations, the 'preponderance of evidence' standard means:

Answer: It is more likely than not (greater than 50%) that the alleged conduct occurred

The preponderance standard requires that the evidence shows the alleged conduct is more likely than not to have occurred.

Which investigative technique involves reviewing financial records for unusual patterns to identify potential fraud?

Answer: Forensic accounting analysis

Forensic accounting analyzes financial records to identify irregularities, fraud patterns, and unexplained transactions indicative of wrongdoing.

The principle of 'investigative objectivity' requires that a CFI:

Answer: Follow all leads regardless of whether they support or contradict the allegations

Investigative objectivity requires pursuing all evidence impartially, including exculpatory evidence that may contradict the original allegations.