Which of the following statements about how fraud examiners should approach fraud examinations is FALSE?

The correct and universally accepted methodology for conducting fraud examinations is to proceed from the general to the specific. Investigators begin by gathering broad evidence to understand the overall scheme and identify potential witnesses or suspects. As the investigation progresses, the focus narrows to specific transactions, documents, and details to prove the fraudulent acts. Starting with specifics without understanding the broader context can lead to tunnel vision, missed evidence, and incorrect conclusions. Therefore, the statement that examiners should start with specifics and move to general is false.

A. Interviewing from the least involved to the most involved is a standard and recommended investigative strategy.
C. The fraud theory approach (developing and testing a hypothesis) is the fundamental methodology for fraud examinations.
D. Beginning with general information and moving to specifics is the correct and recommended approach for fraud examinations.

Association of Certified Fraud Examiners. (2023). Fraud Examiners Manual, International Edition. Section 1.320, "The Fraud Theory Approach." The manual states, "In general, the fraud examination methodology is to start with the general and work toward the specific."

Wells, J. T. (2017). Corporate Fraud Handbook: Prevention and Detection. Chapter 13, "The Fraud Examination and the Fraud Examiner." This text emphasizes the general-to-specific approach in evidence collection.