CFE – Investigation — Question 14

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

Answer options

• 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.

Correct answer: A

Explanation

The correct answer is A because employers may hire fraud examiners to investigate suspicions of employee misconduct related to regulatory reporting. Options B and C are valid reasons for engaging fraud examiners but do not directly relate to the employer's concern about employee honesty, while D pertains more to legal evaluation rather than fraud examination.