List the typical stages of a fraud investigation.

• A. Plan and scope; gather and preserve evidence; analyze data; interview subjects; document findings; report results and recommendations.
• B. Hypothesis; test; conclude.
• C. Identify fraud; prosecute; close case.
• D. Audit; approve; sign off.

Answer: (A)

Fraud investigations follow a structured, defensible workflow from start to finish. Begin with planning and scoping to define objectives, resources, and the boundaries you must work within. Then gather and preserve evidence, establishing a proper chain of custody so materials remain credible and admissible. Next, analyze the collected data and documents to uncover patterns, inconsistencies, and leads. Conduct interviews with witnesses, suspects, or subject-matter experts using professional techniques to obtain reliable information while protecting rights. As you proceed, document your findings clearly and chronologically so the reasoning is transparent and supports conclusions. Finally, prepare a formal report that presents the results and makes recommendations for remediation, control improvements, and any further actions such as disciplinary measures or referrals for criminal action.

This sequence is the best fit because it encompasses the full investigative lifecycle: evidence handling, data analysis, interviewing, thorough documentation, and actionable reporting. The other options describe approaches that are either too narrow or focused on different processes (a simple hypothesis-testing loop, immediate prosecution, or general audit/sign-off tasks) and don’t capture the complete, defensible investigation workflow.