CFE – Investigation — Question 67

Which of the following is NOT an advantage to using link analysis in a fraud investigation?

Answer options

• A. Link analysis visually displays financial ratio analysis.
• B. Link analysis allows the investigator to discover patterns in data.
• C. Link analysis is an effective tool to demonstrate complex networks.
• D. Link analysis helps identify indirect relationships with several degrees of separation.

Correct answer: D

Explanation

Option D is correct because link analysis primarily focuses on direct relationships and connections rather than identifying indirect relationships that may be several degrees apart. Options A, B, and C accurately describe the strengths of link analysis in visualizing data patterns, demonstrating complex networks, and displaying financial ratios.