Inspect Key Attributes on a Sample of Documents | CFE Exam Simulation

Statistical sampling

The answer to this question is "Sampling."

Sampling is a technique used by fraud examiners to inspect a smaller portion or sample of documents to assess key attributes. Rather than reviewing every single document, the examiner can select a representative sample to gain insight into the overall population of documents. This technique is especially useful when dealing with large volumes of data or when time and resources are limited.

The fraud examiner selects a sample based on a predetermined method that ensures the sample is representative of the population. There are various methods of sampling, including random sampling, systematic sampling, stratified sampling, and judgmental sampling.

Once the sample is selected, the fraud examiner can inspect key attributes of the documents, such as dates, amounts, signatures, endorsements, or other relevant information. The examiner can also test for anomalies or irregularities in the sample, such as missing documents, alterations, or unauthorized transactions.

Sampling is an effective tool for fraud examiners because it allows them to assess key attributes of a population without having to review every single document. This can save time and resources while still providing meaningful insights into the overall population of documents.