CFE – Investigation — Question 5

Jackson, a Certified Fraud Examiner (CFE), is analyzing Elm Company’s accounts payable data to identify anomalies that might indicate fraud. Which of the following is the MOST EFFECTIVE data analysis function that Jackson could use to look for potential fraud in accounts payable?

Answer options

• A. Compare book and tax depreciation and indicate variances
• B. Identify paycheck amounts over a certain limit
• C. Summarize large invoices by amount and vendor
• D. All of the above

Correct answer: B

Explanation

The correct answer is B because identifying paycheck amounts over a certain limit directly targets potential payroll fraud, which is a common area of concern. Options A and C, while useful for different analyses, do not specifically address the immediate concerns related to fraud in accounts payable as effectively as option B does.