CFE – Investigation — Question 54

Which of the following is the MOST IMPORTANT question for a fraud examiner to ask before commencing a legal action to recover assets?

Answer options

• A. “Is there a relevant statute of limitations?”
• B. “Has the defendant been previously arrested for allegedly committing a white-collar crime?”
• C. “Is the suspect guilty of the fraudulent act?”
• D. “Does the defendant have sufficient property or money to satisfy a money judgment?”

Correct answer: A

Explanation

The most critical question is about the statute of limitations, as it can determine if the case can legally proceed. Knowing whether the defendant has a history of white-collar crime or if they are guilty of the act does not affect the legal standing of the case. Additionally, while knowing the defendant's financial situation is relevant, it becomes moot if the statute of limitations has expired.