ACFE CFE-Investigation Dumps

From the2014 International Fraud Examiners Manual, under the section related to tracing financial transactions, specifically tracing the disposition of loan proceeds, the following objectives of tracing activities are explicitly outlined:

“Tracing the disposition of loan proceeds can help fraud examiners:

Determine whether loan proceeds were deposited into hidden or unknown accounts

Determine whether loan proceeds were used to pay off other loans

Identify the involvement of previously unknown individuals (potential witnesses)

Determine whether payments were made from hidden accounts

Identify undisclosed related-party transactions”

There isno mentionthat tracing loan proceeds can uncoverprevious civil offensescommitted by the subject. Civil offenses refer to non-criminal violations (e.g., breach of contract, torts), which tracing offinancial transactions like loan proceedsis not directly designed to uncover.

This isnot a recognized purposeof tracing as taught in the CFE Investigation section. The core objectives revolve around uncovering hidden assets, hidden accounts, payments, and potential witnesses —not prior legal infractions.

Therefore, thecorrect answer is A, as it is the only option that isNOT trueaccording to official CFE investigation materials.

TheFraud Examiners Manuallists required steps before seizing evidence:

Obtain legal authority.

Review privacy issues.

Ensure software/hardware are validated.

Document surroundings, inspect for traps, image drives, etc.

There isno requirementto assemble a team exclusively of outside experts.

Before seizing evidence in adigital forensic investigation, the2014 International Fraud Examiners Manualoutlines several critical steps:

Obtain legal authority / review orders:

“Before obtaining evidence, ensure that there is legal authority to seize evidence and review the data associated with the evidence. This might require obtaining a warrant in a criminal matter or ensuring that internal policies authorise seizure for an internal investigation.”

Determine privacy issues:

“Before the fraud examiner can seize evidence, he must take certain steps to help ensure that the evidence will be admissible: He must determine whether there are any privacy interests in the item(s) to be searched… In every case where it becomes necessary to seize a computer or other device capable of storing digital evidence, the investigator should consult with legal counsel.”

Use only trained professionals/software:

“It is important to allow a trained examiner to conduct a proper seizure and examination of digital evidence to help ensure that the information can be used in a legal proceeding.”

✅These are allvalid required steps.

In contrast, the idea that the team must be composedonly of outside digital forensic expertsisNOT a required step. The Manual stresses flexibility in team composition:

“Some organisations have their own in-house personnel… while others might prefer the use of an outside examiner. Sometimes retrieving digital data is as easy as searching the target computer’s hard drive, but other times retrieval requires a thorough knowledge of computers.”

Thus, requiringonly outside expertsis not a standard step, since investigations may useinternal, external, or a mixof specialists depending on the situation.

According to CFE guidance, when planning interviews, fraud examiners should:

“Consider what the interview is intended to accomplish and state an objective.

Review the case file to ensure that important information has not been overlooked.

Prepare a list of topics and general questions.

Choose a neutral and nonthreatening environment so the subject does not feel intimidated.”

Holding the interview in a venue intended to make the subject feel uncomfortableviolates proper CFE interview practice. Hence,Dis correct.