ClEET Phase 3 Private Investigator Practice Exam

Indicators of fraud surface as anomalies in the accounting trail. Unexplained journal entries, irregular reconciliations, and inconsistent documentation point to possible manipulation or concealment of transactions. Validating these red flags by corroborating with source records—original invoices, contracts, bank statements—helps distinguish genuine activity from falsified data and strengthens the case for further investigation. In contrast, consistently recorded entries and transparent processes reflect strong controls, not fraud indicators. Claiming sources never need verification undermines the investigative process, and the idea that fraud indicators are always obvious ignores how fraud can be hidden and only revealed through careful checks and cross-referencing of documents.