CFE – Investigation — Question 60

If your suspect is investing alleged illicit funds in items that will increase their net worth 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 expenditures method
• B. The asset method
• C. The income method
• D. The application of funds method

Correct answer: D

Explanation

The application of funds method is the most effective because it focuses on how the suspect's funds were utilized, providing clear evidence of illicit income being used for asset purchases. The other methods may not directly correlate the funds to the acquisitions as effectively; for instance, the expenditures method looks at spending patterns, which may not clearly demonstrate the source of funds.