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Exam CFE - Investigation All Questions

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Actual exam question from ACFE's CFE - Investigation
Question #: 1
Topic #: 1
[All CFE - Investigation Questions]

Jackson, a Certified Fraud Examiner (CFE), is analyzing Elm Company’s accounts payable data to identify anomalies that might indicate fraud. Which of the following is the MOST EFFECTIVE data analysis function that Jackson could use to look for potential fraud in accounts payable?

  • A. Compare book and tax depreciation and indicate variances
  • B. Identify paycheck amounts over a certain limit
  • C. Summarize large invoices by amount and vendor
  • D. All of the above
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Suggested Answer: B 🗳️

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raochavan
3 weeks, 6 days ago
Selected Answer: C
Answer is C - because This approach helps in identifying anomalies such as unusually large invoices or patterns of payments to certain vendors that could indicate fraudulent activity, such as over-billing or fictitious vendors. Option C focuses directly on analyzing invoice amounts and vendor relationships, which are critical areas where fraud in accounts payable often manifests. Therefore, option C is the most relevant and effective choice for Jackson's analysis.
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