CFE – Investigation — Question 29

Management at First Choice Inc. suspects that Nathan, its chief financial officer (CFO), has been embezzling funds. It hires Reina, a Certified Fraud Examiner (CFE), to investigate the matter. When conducting the fraud examination, Reina should proceed as though:

Answer options

• A. After Nathan is terminated, the case will end.
• B. The matter will be resolved completely internally.
• C. Nathan is guilty.
• D. The case will end in litigation.

Correct answer: B

Explanation

The correct answer is B, as it emphasizes the importance of internal resolution before considering external actions. Options A and D assume the case will end in termination or litigation, which may not be the case if internal processes are followed. Option C presumes guilt prematurely, which could compromise the integrity of the investigation.