CFE – Investigation — Question 75

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. "Does the suspect already have a criminal record?"
• C. "Is the suspect guilty of the fraudulent act?"
• D. "Are nonlegal recovery methods or remedies available?"

Correct answer: D

Explanation

The correct answer, D, emphasizes the importance of exploring alternative recovery methods before resorting to legal action, which can be costly and time-consuming. While the other options may be relevant considerations, they do not directly address the immediate practicalities of asset recovery, making them less critical than understanding available nonlegal remedies.