CFE MODULE 2 READ UP STEP BY STEP

MOVEMENT 10 DAYS STUDY

During an internal fraud examination, an interviewer locks the office door and positions their chair directly between the employee and the room exit. The employee asks to leave, but the examiner continues the questioning for another hour. Which legal claim is the employee most likely to establish against the examiner?

False imprisonment

When planning a series of interviews in a complex financial fraud investigation involving multiple parties, in what order should the fraud examiner generally conduct the interviews?

Neutral third parties, least involved witnesses, reluctant witnesses, primary suspects

An interviewer asks a witness: "You weren't aware that the accounting supervisor was bypassing the dual-authorization control during the month-end close, were you?" This question is an example of a:

Double-negative question

Which of the following best describes the primary objective of the "Engage and Explain" phase within the PEACE interviewing framework?

Establishing rapport, outlining the purpose of the interview, and explaining procedural ground rules

During an informational interview, an employee exhibits rapid speech, avoids eye contact, and shifts frequently in their chair when asked about routine department procedures. What is the most appropriate conclusion for the examiner to draw?

The employee is experiencing stress, which may or may not be related to deception.

An examiner conducting a cognitive interview with an eyewitness to a bank robbery asks the witness to recall the events starting from the moment the vault opened rather than from when the robber first entered the lobby. Which specific cognitive technique is being applied?

Recalling events in different chronological orders

An employee suspected of payroll fraud consents to an internal interview. The employee brings a personal attorney and insists that the attorney be present in the room. Under standard private investigation guidelines, how should the interviewer handle the attorney's presence?

Permit the attorney to attend strictly as an observer without interrupting, objecting, or asking questions.

Which communication inhibitor occurs when a witness is genuinely unable to provide information because an emotionally distressing event caused their unconscious mind to push the memory out of conscious awareness?

Repression

During the introductory phase of an interview, a fraud examiner should avoid using which of the following terms to prevent defensiveness?

Audit

When conducting a closing phase of an informational interview, which of the following is an essential objective for the fraud examiner?

Reconfirming key facts and maintaining goodwill for future contact

Ana, a fraud examiner, is preparing to conduct an interview with Wilbert as part of a fraud investigation at True West Inc. The human resources (HR) manager from True West Inc. has requested to be in the room during the interview. Which of the following statements is MOST ACCURATE regarding the presence of the HR manager during the interview?

If permitted by law, Ana should not allow the HR manager to witness the interview to avoid liability consequences.

Charles, a fraud examiner, accuses George of fraud during an admission-seeking interview. George immediately denies the charge. How should Charles respond to George's denial?

Use a delaying tactic to interrupt the denial.

Allison, a Certified Fraud Examiner (CFE), is investigating a potential procurement fraud scheme. While interviewing a subject, she asks, "Why did you choose to do business with that vendor?" This can BEST be described as a(n):

Open question

Which of the following statements about the process of obtaining a verbal statement of admission is MOST ACCURATE?

The interviewer should obtain a verbal admission either chronologically, by transaction, or by event, depending on the circumstances of the case.

Robert, a new investigator, asks Adam, a witness to an alleged fraud, "Didn't you think that he wasn't behaving appropriately?" This kind of question is called a(n):

Double-negative question

Caroline, a fraud examiner, is conducting an admission-seeking interview with John, an employee suspected of stealing cash. Which of the following is the LEAST effective phrasing for Caroline to use when posing an admission-seeking question to John?

"Did you steal the money?"

When planning for the interview phase of an investigation, which of the following steps should NOT be taken by the fraud examiner?

Ensure that the interview is held in a venue where the subject will feel uncomfortable.

Eugene is conducting an admission-seeking interview of a suspect. During the interview, the suspect frequently looks away from Eugene while responding to questions. Eugene can safely conclude that the suspect is dishonest due to his failure to maintain eye contact.

FALSE

Elizabeth, a Certified Fraud Examiner (CFE), is conducting an admission-seeking interview with Shannon, a fraud suspect. Shannon is seated approximately five feet away from Elizabeth in an empty room. The room has several pictures and posters on the wall, and the door is closed. According to admission-seeking interview best practices, what change should Elizabeth make to the interview environment to increase the chances of the interview's success?

Remove pictures and posters from the wall to eliminate distractions.

Susan, a Certified Fraud Examiner (CFE), is conducting an admission-seeking interview of Beth, a fraud suspect. After Susan gave Beth a suitable rationalization for her conduct, Beth continued her denials, giving various alibis. Which of the following would be the LEAST EFFECTIVE technique for Susan to use in this situation?

Displaying all the evidence she has against Beth at once

Vishal, a Certified Fraud Examiner (CFE), has just initiated an interview with Steve, a fraud suspect. After a short introduction, Vishal jokes about the fact that he and Steve are wearing the same tie and then proceeds to ask Steve about the previous night's major sporting event. Vishal is attempting to:

Establish rapport

Baker, a Certified Fraud Examiner (CFE), contacts Dierdre for the purpose of conducting a routine, information-gathering interview. Dierdre expresses a desire that her coworker, Matthew, whom Baker also plans to interview, be interviewed at the same time. Baker should:

Interview Dierdre and Matthew separately.

Marilyn, a Certified Fraud Examiner (CFE), is reasonably sure that Shelly, her primary suspect, committed the fraud in question. Before scheduling an admission-seeking interview with Shelly, Marilyn should be reasonably sure of all of the following EXCEPT:

That no other person was involved in the fraud in question

Which of the following statements about the process of obtaining a verbal confession is TRUE?

The transition from the accusation to the confession should occur when the accused supplies the first detailed information about the offense.

Which of the following is NOT a best practice for obtaining a signed statement?

Have the suspect write out the entire statement in their own handwriting

Scarlett, a Certified Fraud Examiner (CFE), is conducting an admission-seeking interview of Plum, a fraud suspect. After Scarlett defused Plum's alibis, Plum became withdrawn and slowly began to slouch in her chair, bowing her head. What should Scarlett do now?

Offer an immediate statement of admission for Plum to agree with

If an important witness becomes hostile and argumentative during an interview, the interviewer should generally:

Try to reason with the witness

Tyson, a fraud examiner, is planning an interview with Brianna, the girlfriend of the central suspect in Tyson's investigation. Previous interviews with others have revealed that Brianna tends to be very protective of her boyfriend. How should Tyson approach the interview with Brianna?

Provide Brianna with advance notice prior to the interview to inhibit resentment.

Nathaniel, a Certified Fraud Examiner (CFE), is investigating an alleged inventory theft scheme. While interviewing a subject, he asks, "When were you promoted to manager of the department?" This can BEST be described as a(n):

Closed question

Sarah is conducting an admission-seeking interview of a suspect. Throughout the interview, the suspect makes little eye contact with Sarah. Based on this information alone, can Sarah conclude that the suspect is being deceptive?

No, because this is not enough information to conclude that the suspect is being deceptive

John, a fraud investigator, is interviewing Mary, who he suspects has been embezzling company funds. Which of the following is the recommended approach John should use to ask Mary questions?

Seek general information before seeking specific details

Which of the following is one of the purposes of closing questions in a routine interview?

To close the interview positively and maintain goodwill

Naveed, a fraud suspect, has decided to confess to Omar, a Certified Fraud Examiner (CFE). In obtaining a verbal confession from Naveed, Omar should obtain all of the following items of information EXCEPT:

A statement from Naveed that his conduct was an accident

Which of the following questions would be most effective when starting the calibration process (establishing a baseline) during an interview?

"Are you familiar with the company's policies regarding ethics?"

Baker, a Certified Fraud Examiner (CFE), is getting prepared to conduct a lengthy and complex interview. To prepare himself, Baker should:

Write down key points to go over with the respondent

In response to an accusation made during an admission-seeking interview, the subject begins to voice a denial to the charge. How should the interviewer react to the first indication of a subject's denial?

Interrupt the denial by using a delaying tactic.

Misty, a fraud investigator, is interviewing Larry, who she suspects has been embezzling company funds. Which of the following is NOT a recommended sequence in which Misty should ask Larry questions?

Asking questions in random order to prevent Larry from knowing what question comes next

Beta, a Certified Fraud Examiner (CFE), is conducting an admission-seeking interview of Delta, a fraud suspect. In establishing a rationalization, Beta says to Delta, "I know you didn't do this for yourself; it was for your family." This technique seeks to establish rationalization by:

Claiming Delta's action was for altruistic reasons

Tonya, a suspect in a kickback scheme, is being interviewed by Carlos, a fraud examiner. As the interview progresses, Carlos notices that Tonya is exhibiting signs of stress, such as repeatedly touching her face, crossing and uncrossing her legs, and darting her eyes around the room. Carlos should conclude that Tonya's behavior is the result of deception.

FALSE

Delta, an interviewer with little experience, asks Sigma, the respondent, the following question: "Were you aware that the signature was forged, and why didn't you tell anyone earlier?" This kind of question is called a:

Complex question

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?

Baker should omit a title altogether

Pedro, a Certified Fraud Examiner (CFE), is conducting an admission-seeking interview of Manuel, a fraud suspect. After Pedro diffused Manuel's alibis, Manuel became withdrawn and slowly began to slouch in his chair, bowing his head and beginning to cry. What should Pedro do now?

Offer an immediate statement of admission for Manuel to agree with

An investigator is preparing to administer what is likely to be an intense and extended interview with a fraud suspect. To organize their thoughts prior to the interview, the fraud examiner should:

Develop a list of questions ranked in order of importance.

During an interview with Alice, a suspect in an embezzlement case, the interviewer observes several signs of stress in Alice's behavior, such as shifting around in her chair, exhibiting shallow breathing, and occasionally stuttering during her replies. The interviewer should conclude that these symptoms are caused by deception.

FALSE

Beta, a Certified Fraud Examiner (CFE), is conducting an admission-seeking interview of Gamma, a fraud suspect. After Beta gave Gamma an appropriate rationalization for his conduct, Gamma continued his denials, giving various alibis. These alibis can usually be diffused by all of the following techniques EXCEPT:

Downplaying the strength of the evidence

When documenting interviews, it is BEST practice for the interviewer to:

Document notes for each interview separately, including those for electronic recordings.

Martin, a fraud examiner, is conducting an interview of Stephanie, a fraud suspect. Although Stephanie heard all of the questions during the introductory part of the interview, she began asking Martin to repeat almost every question when they became more focused. If Stephanie is being deceptive, which of the choices below is MOST LIKELY the cause of Stephanie's behavior?

Stephanie is delaying the answer so that she has more time to think of what to say.

Which of the following is NOT true about observing the reactions of interview subjects?

Emotive words should be used early in the interview to observe the respondent's emotional reaction.

A fraud examiner contacts a witness for an interview regarding a financial statement fraud case, but the witness responds by saying that they are too busy to be interviewed. It is MOST APPROPRIATE for the fraud examiner to respond by:

Offering to conduct the interview after work hours to better accommodate the witness's schedule

Steve, a Certified Fraud Examiner (CFE), was interviewing Michelle, a fraud suspect. During the first part of the interview, Michelle was attentive. However, when he asked her more direct questions about the fraud, she suddenly seemed unconcerned, alternately chewing on her pen cap and picking at a loose piece of fabric on the arm of her chair. From this conduct, Steve is likely to conclude that Michelle:

Is being deceptive

After completing all necessary investigative steps, Erica, a Certified Fraud Examiner (CFE), is reasonably sure that Justine, her primary suspect, committed the fraud in question. Before scheduling an admission-seeking interview with Justine, what else should Erica be reasonably sure of?

That the interview's time, place, and content can be controlled

Which of the following is NOT a recommended strategy when conducting admission-seeking interviews?

Minimize empathy while emphasizing the perception of moral wrongdoing

Gamma, a Certified Fraud Examiner (CFE), was conducting an admission-seeking interview of Delta, a fraud suspect. Gamma tells Delta, "It isn't like you took something from a friend or neighbor. I can see how you could say, 'Well, this would be okay as long as it is the company and not my coworkers.' Isn't that right?" This technique seeks to establish rationalization by:

Depersonalizing the victim

Jason is an investigator who is conducting an interview with Dina, a fraud suspect. After introducing himself, Jason attempts to be amiable by asking about Dina's favorite sports team and complimenting her eyeglass frames. Jason is attempting to:

Establish rapport

When asked what punishment should be given to whoever stole inventory, David, a suspect, replies: "Well, you know, maybe the person was under financial pressure, maybe we should understand their situation, people make mistakes." This verbal clue is:

Untruthful - tolerant attitude toward dishonesty

Jason is a fraud examiner who is conducting an interview with a female suspect. He attempts to be friendly by complimenting her appearance and telling her what stores have been selling. Jason is attempting to:

Establish rapport with the suspect

Thomas is interviewing the primary suspect of an investigation. Throughout the interview, the suspect fidgets, picks at their fingernails and scratches their arms. Based on this behavior, can Thomas conclude the suspect is deceptive?

No, because restless behaviors should not be isolated and used to draw a single conclusion

Gila, a Certified Fraud Examiner (CFE), is preparing a fraud examination report. To communicate effectively [to the reader / to make the report effective], she should:

Use technical terms whenever possible to convey expertise and professionalism.

Devon, a Certified Fraud Examiner (CFE), is investigating a potential fraud based on a whistleblower tip. He discovers that the organization reported [the tip in a memorandum / documented it in a file]. How would the memorandum be considered?

Documentary evidence

If a fraud examiner needs to establish a baseline with an interviewee, which of the following questions would be MOST EFFECTIVE in accomplishing this task?

"What is the highest level of education that you have completed?"

Which of the following options is a primary purpose of an admission-seeking interview?

To obtain a signed written statement from the culpable individual acknowledging the facts of the case

When documenting interviews, it is best practice for the interviewer to:

Document notes for each interview separately, including those for electronic recordings.

Which of the following statements regarding the planning process for admission-seeking interviews is TRUE?

If the interview is to be conducted remotely, arrangements should be made so that a signed statement of admission can be obtained from the suspect by an organization representative.

Which of the following steps should be taken to prepare an organization for a confidential investigation?

Alert the organization's legal counsel when the investigation is about to begin.

Rose, an expert witness in an adversarial jurisdiction, is called to testify in court. Which of the following types of questions will the attorney MOST LIKELY ask Rose?

Open-ended questions

Greta, a CFE, is conducting an admission-seeking interview with Devon. Greta tells Devon: "I understand how you could say, Well, the company can afford and will not be affected. That is what happened, right?" Greta's statement seeks to establish the misconduct by:

Depersonalizing the victim

Jackson, a fraud examiner, is preparing to conduct an interview with Isabel as part of a fraud investigation. Isabel's manager has requested to be in the room during the interview. Which is ACCURATE regarding presence of this manager?

If permitted by law, Jackson should NOT allow the manager to witness the interview to avoid liability complications

Jackson, a fraud examiner, is preparing to conduct an interview with Isabel as part of a fraud investigation. Isabel's manager has requested to be in the room during the interview. Which is ACCURATE?

If permitted by law, Jackson should NOT allow the manager to witness the interview to avoid liability consequences

Which of the following statements is MOST ACCURATE regarding covert operations?

A covert operation could cause an investigator to incur reputational, financial, and legal consequences

Jenny, a fraud examiner, is conducting an interview of an employee who is suspected of accepting bribes from prospective vendors in return for favorable treatment in the vendor selection process. Which of the following is the MOST appropriate information-seeking question for Jenny to ask during the initial stage of the interview?

"What do you know about the bribes?"

A fraud examiner contacts a witness for an interview regarding a bribery case, but the witness is reluctant to participate. Which of the following actions is MOST APPROPRIATE for the fraud examiner to take to build rapport with the witness?

Suggesting that the witness choose a time and location that is more convenient

Elena, a fraud examiner, is planning for interview regarding theft of physical assets for resale. Which of the following steps…

Elena should select the most appropriate member of the investigation team to act as interviewer given the circumstances

Theresa is interviewing Casey, an employee she suspects of stealing funds... account records from his bank. Which of the following statements...

Casey's bank will likely require Theresa to obtain written consent from Casey before disclosing account records

Which of the following statements BEST describes how fraud examiners should plan to approach fraud examinations?

Fraud examiners should begin a fraud examination with general information first to narrow and then information that are more specific

During an internal investigation, Black, a CFE, interviews Green. Although Green wants to leave during the interview, Black does not allow him to leave and Green subsequently confesses. If Green files suit for false imprisonment against Black, he will likely:

Lose the case if a trier of fact concludes that he restrained Green without consent or legal justification

Timothy, a Certified Fraud Examiner (CFE), has been hired as a contractor to investigate fraud at XYZ Corporation. He is preparing to interview one of XYZ's employees. How might Timothy introduce himself to the interviewee?

"Hello, my name is Timothy. I'm a Certified Fraud Examiner and have been hired by XYZ Corporation to investigate fraud allegations."