CFE – Investigation — Question 32

Which of the following is a reason why a subject’s credit card statements can be useful in tracing investigations?

Answer options

• A. Credit card records can show signs of skimming.
• B. Credit card statements provide insight into the subject’s litigation history.
• C. Credit card statements can name people or companies with whom the subject conducts business.
• D. Credit card statements show the source of the funds used to pay a credit card bill.

Correct answer: C

Explanation

The correct answer, C, is valid because credit card statements can reveal names of individuals or companies the subject has transactions with, aiding in the investigation. Option A is incorrect as while skimming can be detected, it is not the primary use of statements in tracing. Option B is wrong because litigation history is not typically reflected in credit card statements. Option D is also incorrect, as credit card statements do not directly show the source of funds for payments.