DCI 4343 FRAUD INVESTIGATION (JUN-OCT 24)_CHAPTER 5-7

In what situation reactive fraud investigation shall be conducted?

• When the entities are at risk of fraud but there are no obvious symptoms that fraud has occurred

• When the investigators discovered indications that fraud may be present and there is sufficient reason to investigate further

• The investigation is conducted on the degree to which the entity is at risk and not on any evidence of symptoms of fraud

• The investigators will identify the area of potential fraud with no obvious symptoms or evidence

What is the procedure if indicia were found during fraud investigation?

• Investigators must seek additional evidence to validate the finding

• The investigation should report the finding to the law enforcement body

• The investigation should be discontinued

• Investigators will pass the accounting transaction and go to another selection

What is the effect of difference in legal system between countries towards fraud investigation?

• There will be communication barriers and cultural misunderstandings that can hinder the investigation

• The investigation will be time-consuming and expensive

• There will be variances to the evidentiary rules, trial procedures, and sentencing guidelines

• The investigators are required to travel to multiple countries and coordinate with different law enforcement agencies

The following is the correct procedures to interview fraud suspects EXCEPT

• Refrain from using coercion during the interview

• Document the suspect's statements accurately and comprehensively

• Do not use threats against the suspect to get their confession

• Make assumptions about the suspect's guilt without evidence

The following are the CORRECT procedures of interviewing fraud witnesses EXCEPT

• Start with leading questions to gather the interviewees’ perspective about the situation

• Build a rapport with the interviewee to create a comfortable environment

• Ask follow-up questions to clarify ambiguous or incomplete information

• Request that the interviewee provide information in chronological order

What should be included in the background of fraud investigation report?

• Summarization of actions performed during the fraud examination

• Overview of action taken during the examination process

• One paragraph of recommendations to prevent future fraud incidents

• The reason why the fraud examination was conducted

In what situation proactive fraud investigation shall be conducted?

• When there is indication that fraud may be present

• When fraud investigators receive information of fraud activity

• When the entities are at risk of fraud but there are no obvious symptoms that fraud has occurred

• It is conducted in response to information on an ongoing fraud activity

What is the procedure if indicia are NOT found during fraud investigation?

• Investigators must seek additional evidence to validate the finding

• The investigation should be completed by document examinations

• The investigation should be discontinued

• Investigators will pass the accounting transaction and go to another selection

Which of the following is CORRECT on cross-border fraud investigation?

• Set of circumstances that are unusual in nature or vary from the normal activity

• Process of investigating fraudulent activities that involve individuals or entities from different countries

• Investigation of mistakes or inaccuracies made during the process of recording and reporting financial transactions

• Investigation of any deviation or irregularity in a dataset that does not conform to expected patterns or behaviors

The following are the correct procedures of interviewing fraud witnesses EXCEPT   

• Emotional cues and body language should be ignored to avoid deception

• Build a rapport with the interviewee to create a comfortable environment

• Request that the interviewee provide information in chronological order

• Safeguard any recorded materials and maintain their integrity for future reference