CFE – Investigation — Question 4

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?

Answer options

• A. The asset method
• B. The income method
• C. The expenditures method
• D. The consumables method

Correct answer: A

Explanation

The asset method is the most effective because it focuses on the accumulation and value of assets that can be linked to illicit income. The income method, while useful, does not directly correlate with how funds are utilized. The expenditures method tracks spending but may not clearly demonstrate illegal income sources, and the consumables method is too narrow in scope to effectively provide evidence.