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Exam CFE - Investigation All Questions

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Exam CFE - Investigation topic 1 question 28 discussion

Actual exam question from ACFE's CFE - Investigation
Question #: 28
Topic #: 1
[All CFE - Investigation Questions]

Which of the following is a reason why a person or organization might engage a fraud examiner to trace illicit transactions?

  • A. An employer wants to know if an employee is falsifying regulatory reports.
  • B. An entity needs to find hidden relationships in big data that otherwise would not be discovered.
  • C. A victim of fraud wants to facilitate the recovery of criminal proceeds.
  • D. An attorney wants to evaluate an expert’s financial report.
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Suggested Answer: A 🗳️

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raochavan
3 weeks, 6 days ago
Selected Answer: C
This is a primary reason for engaging a fraud examiner to trace illicit transactions. Tracing the flow of funds is crucial for recovering stolen assets. Fraud examiners are often engaged by individuals or organizations to trace illicit transactions with the goal of uncovering and recovering stolen or fraudulent funds. In this context, the victim of fraud (whether an individual, company, or other entity) would engage the fraud examiner to track down illicit proceeds in order to facilitate their recovery.
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