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ACFE CFE-Investigation Exam - Topic 1 Question 114 Discussion

Actual exam question for ACFE's CFE-Investigation exam

Question #: 114
Topic #: 1

[All CFE-Investigation Questions]

Which of the following types of data is BEST suited for a BenfordTs Law analysis?

AEmployee identification numbers

BTelephone numbers

CA listing of payment amounts

DVendor addresses

Show Suggested Answer

Suggested Answer: C

by Gail at Aug 03, 2025, 02:12 AM

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Isaac

9 months ago

Really? I’m surprised it’s not A or B!

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Thad

9 months ago

C makes sense, payment amounts vary widely.

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Marti

9 months ago

Totally agree, C is the way to go!

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Shawnta

9 months ago

I thought A would work too, but I guess not.

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Ashley

9 months ago

C is definitely the best choice for Benford's Law!

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Shannan

10 months ago

I’m a bit confused. I thought Benford's Law applied to any kind of data, but now I’m questioning if telephone numbers could work too.

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Lashawnda

10 months ago

I practiced a similar question, and I recall that financial data like payment amounts often follow Benford's Law. So, C seems right to me.

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William

10 months ago

I’m not entirely sure, but I remember something about how Benford's Law works better with naturally occurring numbers. Maybe employee IDs don’t fit that?

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Ronny

10 months ago

I think Benford's Law is about analyzing numerical data, so I’m leaning towards option C with payment amounts.

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Hubert

10 months ago

Payment amounts seem like the obvious choice here. That's the kind of data that's commonly analyzed using Benford's Law.

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Julio

11 months ago

Hmm, I'm leaning towards the employee identification numbers. They seem like they could have the right distribution to fit Benford's Law.

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Delisa

11 months ago

I'm not too familiar with Benford's Law, so I'm not sure which of these options would be best. I'll have to review the concept before deciding.

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Jacob

11 months ago

I think the payment amounts would be best for a Benford's Law analysis, since that type of data tends to follow the Benford's distribution.

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Nakisha

12 months ago

Vendor addresses? Really? That's just silly. Unless the vendors are all based in Lake Wobegon, where 'all the women are strong, all the men are good-looking, and all the children are above average.'

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Janet

12 months ago

Hmm, I'm not sure. Employee IDs and phone numbers might have some interesting digit patterns too. But I guess payment amounts are more likely to follow Benford's Law. As long as the exam doesn't ask me to actually calculate the leading digit frequencies, I'm good!

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Deonna

12 months ago

I don't know, I'm still trying to wrap my head around this Benford's Law thing. Isn't it something to do with the frequency of certain digits in natural numbers or something? If that's the case, then C) sounds like the way to go.

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Aleta

11 months ago

Exactly. Employee IDs and addresses wouldn't fit as well.

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Scarlet

11 months ago

C) makes sense. Payment amounts vary a lot.

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Stanton

11 months ago

True! It's crazy how some digits appear more often.

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Juan

11 months ago

Yeah, Benford's Law analyzes the distribution of leading digits.

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Susana

1 year ago

I agree with Kiera, payment amounts have a wide range of values.

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Kiera

1 year ago

I think C) A listing of payment amounts is the best option.

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Stanton

1 year ago

C) A listing of payment amounts seems like the obvious choice here. Benford's Law is all about the distribution of leading digits in numerical data, and payment amounts definitely fit the bill.

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Jess

11 months ago

C) A listing of payment amounts

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Nida

1 year ago

B) Telephone numbers

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Ruth

1 year ago

A) Employee identification numbers

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