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Exam CFE - Investigation All Questions

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Exam CFE - Investigation topic 1 question 12 discussion

Actual exam question from ACFE's CFE - Investigation
Question #: 12
Topic #: 1
[All CFE - Investigation Questions]

If your suspect is spending suspected illicit funds on consumables (e.g., travel and entertainment) and you need to prove their illicit income circumstantially, which of the following methods of tracing assets would yield the BEST result?

  • A. The asset method
  • B. The income method
  • C. The expenditures method
  • D. The consumables method
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Suggested Answer: A 🗳️

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raochavan
1 month, 1 week ago
Selected Answer: C
Answer is C - When a suspect is spending illicit funds on consumables such as travel, entertainment, dining, and other non-investment expenses. This method analyzes the suspect’s known income versus their spending to identify discrepancies that suggest unreported or illicit income. not Asset method because in this method it is useful for identifying illicit funds that are invested in assets (e.g., real estate, vehicles, bank accounts), but it is less effective when funds are spent on consumables.
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