Latest Sep 08, 2026 CFE-Investigation Brain Dump: A Study Guide with Tips & Tricks for passing Exam
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NEW QUESTION # 102
Cynthia is preparing to conduct a covert investigation Prior to conducting surveillance of her subject, she creates a memorandum outlining the basis for her operation. Which of the following pieces of information should she Include In her memorandum?
- A. All of the above
- B. Her first impression regarding the subject's culpability
- C. The identities of any confidential sources to be used in the operation
- D. The name of the subject she will be observing
Answer: A
NEW QUESTION # 103
Andrew wants to use a confidential informant in his investigation. He plans to compensate the informant with cash and obtain a receipt. He also plans to identify his source in a memorandum and his final report using only the informant's initials. Which of Andrew's plans is NOT considered a best practice when using an informant?
- A. Creating a receipt regarding the cash payment
- B. Using information from the informant in his final report
- C. Compensating the informant with cash
- D. Referring to the informant in the memorandum using the informant's initials
Answer: D
Explanation:
Referring to the informant in the memorandum using the informant's initials Explanation: Best practice requires that informants be identifiedonly by symbols (e.g., I-1, I-2), not by initials, to protect their identity. Cash payments are acceptable but must be accompanied by areceipt.
NEW QUESTION # 104
Which of the following types of files is the most difficult to recover during a digital forensic examination?
- A. Overwritten files
- B. Deleted link (shortcut) files
- C. Deleted until
- D. Hidden files
Answer: A
Explanation:
Both the Manual and CFE Prep guides emphasize thatdeleted files are recoverable until overwritten. Once overwritten, the original data cannot be retrieved:
"Deleted files are recoverable until they are overwritten because data is not erased... until overwritten. So, deleted files that have been overwritten generally arenot recoverable." Other file types (deleted shortcuts, hidden files, etc.) can often be recovered, butoverwritten files are lost permanently.
NEW QUESTION # 105
Which of the following is a purpose of an admission-seeking interview?
- A. To verify that the accused mistakenly committed the act
- B. To establish that the confessor regrets committing the act
- C. To obtain a valid confession from a culpable individual
- D. To determine whether the subject's responses are credible
Answer: C
Explanation:
Admission-seeking interviews are designed:
"to obtain a legal admission of wrongdoing... also to distinguish innocent individuals from culpable ones and to secure a signed written statement".
The primary purpose is obtaining a valid confession.
NEW QUESTION # 106
Which of the following situations would probably NOT require access to nonpublic records to develop evidence?
- A. Accessing banking records to trace assets
- B. Analyzing an individual's personal mobile phone records
- C. Reviewing a company's business filings
- D. Obtaining personal health care records
Answer: C
Explanation:
* Nonpublic records include banking, tax, credit, phone, credit card, and health care records.
* Business entity organisational filings (corporate constitutions, articles of incorporation) are generallypublic recordsand can be obtained from the government.
Therefore, reviewing a company's business filings doesnotrequire access to nonpublic records.
NEW QUESTION # 107
Which of the following data analysis functions is used to determine whether company policies are met by employee transactions, such as verifying that traveling employees book their accommodations at approved hotels?
- A. The compliance verification function
- B. The Join function
- C. The gap testing function
- D. The correlation analysis function
Answer: A
Explanation:
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.
NEW QUESTION # 108
A fraud examiner is based in Mexico, a non-European Union (EU) country, and is collecting personal information from their company's human resources (HR) files about an employee based in Germany, an EU country. Based on these facts, the fraud examiner would need to comply with the EU"s General Data Protection Regulation (GDPR) when conducting their internal investigation.
- A. True
- B. False
Answer: A
NEW QUESTION # 109
Shannon, a Certified Fraud Examiner (CFE), is conducting a fraud examination for Sand Corp. Shannon is going to perform a textual analysis on unstructured data, such as emails and instant messages. Why would Shannon perform such an analysis?
- A. The analysis will determine whether someone is lying or telling the truth based on clues within the data.
- B. The analysis will uncover an admission of fraud in an email or other communication that can be presented in court.
- C. The analysis will produce a visual representation of the data collected to track the movement of money.
- D. The analysis will categorize data to reveal patterns, sentiments, and relationships that are indicative of fraud.
Answer: D
Explanation:
Textual analytics is used to extract investigative insight from unstructured data-communications and documents that are not stored in standard database fields-such as emails, chats, memos, and other narrative text. CFE investigative guidance explains that textual analysis applies linguistic methods and statistical techniques to identify themes, anomalies, and linkages within large volumes of text. Its purpose is not to determine truthfulness or deception with certainty (Option A), because text analytics cannot reliably "detect lies" in a definitive way. Nor is its primary objective to guarantee discovery of a confession (Option B); admissions can appear, but that is not the defining function of the approach. Option C aligns more with flow- of-funds visualization or link/relationship charting for financial movements rather than analyzing language content. Instead, textual analysis is performed to categorize and structure text so patterns, sentiments, recurring topics, and relationships between people and events become visible-helping examiners prioritize leads, identify risk indicators, and focus investigative testing on communications most indicative of potential fraud.
NEW QUESTION # 110
A fraud examiner is based in Mexico, a non-European Union (EU) country and is collecting personal information from their company human resources (MR) files about an employee based in Germany an employee based country Based on these facts. The fraud examiner would need to comply with the EU's General Data Protection Regulation (GDPR) when conducting their Internal investigation.
- A. True
- B. False
Answer: A
NEW QUESTION # 111
When documenting interviews, it is BEST practice for the interviewer to:
- A. Err on the side of taking too many notes rather than too few.
- B. Write down verbatim all of (he information that the subject provides during the interview
- C. Document notes for each interview separately, nduding those for electronic recordings.
- D. Note impressions regarding the subject's guilt or innocence.
Answer: C
NEW QUESTION # 112
Sylvia, a novice interviewer, asks Adam, the respondent, the following question: "Didn't you know that something wasn't right?" This kind of question is called a_____________question.
- A. Double-negative
- B. Free narrative
- C. Controlled answer
- D. Complex
Answer: A
NEW QUESTION # 113
Which of the following can be obtained from a wire transfer record?
- A. The sending institution's accreditation type
- B. The name of the receiving institution's registered agent
- C. The name of the sender or originator
- D. The recipient's government identification number
Answer: C
NEW QUESTION # 114
Sam needs to obtain the most accurate court records possible in a particular jurisdiction concerning a fraud suspect. The BEST place for Sam to look is a global database that compiles court cases from various jurisdictions
- A. True
- B. False
Answer: A
NEW QUESTION # 115
Jade, a Certrfied Fraud Examiner (CFE). is conducting an internal investigation in which an employee is suspected of stealing inventory and selling it through a possible shell company called Hidden Finds. LLC. When Jade tries to check Hidden Finds' website, a message appears that redirects customers to a web address that ends with onion To view the website's content. Jade will need to install a specialized web browser that enables her to access which of the following?
- A. The free web
- B. The dark web
- C. The internet archives
- D. The deep archives
Answer: C
NEW QUESTION # 116
Which of the following is NOT a step a fraud examiner must take before seizing evidence in a digital forensic investigation?
- A. Ensure that only trained professionals employ any software used in a forensic capacity
- B. Determine whether there are privacy issues related to the item(s) to be searched.
- C. Obtain and become familiar with any legal orders that apply to the investigation
- D. Assemble an investigation team comprised only of outside digital forensic experts
Answer: C
NEW QUESTION # 117
Tom, a Certified Fraud Examiner (CFE) was hired to trace Keeley's assets, To trace the assets, Tom uses Keeley's Books and records to analyze the relationship between the receipt and subsequent disposition of funds or assets. Which tracing method did Tom use?
- A. The comparative assets method
- B. The asset method
- C. The direct method
- D. The indirect method
Answer: A
NEW QUESTION # 118
When reporting the results of a fraud examination is best to include copies (not originals) of important documents in the formal report.
- A. True
- B. False
Answer: B
NEW QUESTION # 119
Which of the following is NOT one of the main limitations of conducting a search for public records using online databases?
- A. Fraud examiners often must search for public records in multiple jurisdictions.
- B. The online record might only be a brief abstract of the original.
- C. Online records companies are difficult to find.
- D. Fraud examiners must validate the accuracy of the records obtained online
Answer: C
NEW QUESTION # 120
Which of the following statements about the process of obtaining a verbal confession is TRUE?
- A. Fraudsters tend to overestimate the amount of funds involved in the offense to relieve themselves of the guilt of their dishonest actions.
- B. If the subject lies about an aspect of the offense in the process of confessing, it is best to correct the records immediately before proceeding
- C. The transition from the accusation to the confession should occur when the accused supplies the first detailed information about the offense.
- D. The only acceptable approaches to obtaining a verbal confession are chronologically or by transaction
Answer: C
NEW QUESTION # 121
When documenting interviews, it is best practice for the interviewer to.
- A. Covertly record all interviews with potential suspects.
- B. Write down verbatim all the information that the subject provides
- C. Note impressions regarding the subject's guilt or innocence.
- D. Err on the side of taking too few notes rather than too many.
Answer: D
Explanation:
TheFraud Examiners Manualadvises:
"Do not slow down the interview process for note-taking. Instead, jot down key words ... In general, it is better to err on the side of taking too few notes rather than too many." Therefore, the best practice isC.
NEW QUESTION # 122
If your suspect is spending suspected illicit funds on consumables (e.g.. travel and entertainment) and you need to prove their illicit income circumstantially, which of the following methods of tracing assets would yield the BEST result?
- A. The asset method
- B. The consumables method
- C. expenditures method
- D. The income method
Answer: C
Explanation:
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.
NEW QUESTION # 123
Which of the following is a best practice for obtaining a signed statement?
- A. Include all of the subject's offenses, whether related or not, in a angle document.
- B. Have the suspect write out the entire statement in their own handwriting
- C. Make sure that everything is included in the signed statement and that no addendum are made
- D. Have two individuals witness the signing of the document when possible.
Answer: D
Explanation:
Best practice for signed statements:
* Fraud examiners should prepare the statement, keep it concise, and ensure voluntariness and intent are clear.
* While not legally required, it isrecommendedthat two individuals witness the signing.#Answer: C.
Have two individuals witness the signing of the document when possible
NEW QUESTION # 124
Baker, a Certified Fraud Examiner (CFE). is assigned to the internal audit department of the ABC Company. He is getting ready to conduct an interview with another company employee who might be involved in a fraud. In general, what title should Baker use in his introduction to the employee?
- A. Auditor
- B. Investigator
- C. Certified Fraud Examiner
- D. Baker should omit a title altogether
Answer: D
NEW QUESTION # 125
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The CFE-Investigation certification is highly valued in the industry and is recognized globally. It demonstrates a professional's commitment to the highest ethical and professional standards in the field of fraud investigation. By passing the CFE-Investigation exam, professionals can enhance their credibility and career opportunities in the field of fraud detection and investigation.
ACFE CFE-Investigation: Certified Fraud Examiner - Investigation Exam Professional Salary
ACFE CFE-Investigation: Certified Fraud Examiner - Investigation Exam Professional Salary in:
- India: 1,55,500 to 6,90,500 INR
- Europe: 82,500 Euro
- United States: 98,550 USD
To be eligible to take the CFE-Investigation certification exam, candidates must have a minimum of two years of professional experience in fraud examination or a related field. In addition, candidates must also be members of the ACFE and must have completed the required training and education in fraud examination. Certified Fraud Examiner - Investigation Exam certification exam is a computer-based test that consists of 125 multiple-choice questions that must be completed within four hours.
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