Free CFE-Investigation Practice Test Questions 2026

Susan, a Certified Fraud Examiner (CFE). is conducting an ad mission-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?

A. Displaying evidence that specifically contradicts Beth's alibis

B. Discussing some of Beth's prior deceptions

C. Discussing the testimony of other witnesses

D. Displaying all the evidence she has against Beth at once

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

Which of the following is NOT a recommended strategy when conducting admissionseeking interviews?

A. Conduct admission-seeking interviews only when time is not a factor.

B. Ensure that accusations are made under conditions of privacy to avoid potential liability

C. Minimize empathy while emphasizing the perception of moral wrongdoing

D. Present a morally acceptable reason for the subject's behavior

All of the following are true with regard to textual analytics EXCEPT:

A. When conducting textual analysis, the fraud examiner should come up with a list of fraud keywords to search for.

B. Textual analytics is used to reveal patterns, sentiments, and relationships indicative of fraud

C. The purpose of textual analytics is to search for and find an admission of fraud that can be presented in court

D. Textual analytics provides the ability to uncover warning signs of potentially fraudulent employee behavior

Which of the following is NOT true with regard to tracing the disposition of loan proceeds?

A. Tracing loan proceeds can determine if the proceeds were deposited into hidden accounts.

B. Tracing loan proceeds can uncover previously hidden assets

C. Tracing loan proceeds can determine if hidden accounts were used for loan payments

D. Tracing loan proceeds can identify the presence of internal control weaknesses.

Which of the following is a reason why a subject's credit card records are useful in tracing investigations?

A. Credit card statements show source of the funds used to pay a credit card bill

B. Credit card records show the movements and habits of the subject

C. Credit card records provide insight into the subject's litigation history

D. Credit card records contain information about the division and distribution of the subject's assets

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. Referring to the informant in the memorandum using the informant's initials

B. Using information from the informant in his final report

C. Creating a receipt regarding the cash payment

D. Compensating the informant with cash

Which of the following BEST describes the data analytics approach known as predictive analytics?

A. The configuration of a business program to emulate and Integrate the actions of a human to execute certain business processes, thus increasing efficiency and automating repetitive manual tasks

B. The use of historical data, along with analyses, statistics, and machine learning components, to build a mathematical model that captures important trends and creates a quantitative forecast

C. The employment of computer systems to perform human-like tasks such as visual perception and decision-making

D. The use of layered artificial neural networks to accommodate more data and more sophisticated algorithms to identify complex patterns

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:

A. Provide the suspect with a list of questions to ensure detailed responses-

B. Make a list of key points to go over with the respondent.

C. Develop a list of questions ranked in order of importance.

D. Memorize a detailed list of questions, but avoid taking a written list to the interview

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?

A. Counter the denial by arguing with George until further denials are futile

B. Use a delaying tactic to interrupt the denial

C. Remind George he has to tell the truth or face perjury.

D. Allow George to continue denying the charge.

If the following statements were included in a fraud examination report of a qualified expert, which of them would be IMPROPER?

A. "When asked a second time about the amount of funds missing, the suspect contradicted their previous testimony."

B. "The evidence shows that between S1 million and S1.5 million in assets were transferred to an offshore account."

C. "The organization must address the inadequate separation of accounting duties to prevent such an event from happening again."

D. "In light of all the evidence, the suspect is most likely guilty of fraud against the organization."

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?

A. Avoid interviewing Brianna if possible due to Brianna's potential volatility.

B. Conduct the interview with as little notice as possible so Brianna will be unprepared

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

D. Ask Brianna when she would prefer to be interviewed in an effort to provoke cooperation.