CFE – Investigation — Question 80

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

Answer options

• A. Compare book and tax depreciation and indicate variances
• B. Identify paychecks with amounts over a certain limit
• C. Review recurring monthly expenses and compare to posted/paid invoices
• D. All of the above

Correct answer: D

Explanation

The correct answer is D because all the listed functions can effectively uncover potential fraud in accounts payable. Comparing depreciation and identifying large paychecks are useful, but reviewing recurring expenses against invoices provides a comprehensive approach to detect anomalies.