TheFraud Examiners Manualstates:
"The expenditures method works best when the subject spends illicit income on consumables (e.g., travel and entertainment), because when the subject spends the illicit income, it will not cause an increase in net worth." CFE Prepconfirms:
"The expenditures method ... is best used when the subject spends illicit income on consumables (such as travel and entertainment) that would not cause an increase in net worth." Thus, the correct answer isA.

Link analysis is described as avisual analytic toolthat:
* "Tracks the movement of money,"
* "Demonstrates complex networks,"
* "Helps identify indirect relationships with several degrees of separation," and
* "Discovers communications, patterns, and trends."
It doesnotdisplay financial ratios-that belongs to traditionalfinancial statement/ratio analysis.

Guidance on reports:
* "A fraud examination report should be accurate, clear, and impartial. The fraud examiner should avoid technical jargon where possible and write in plain language so that readers without specialized knowledge can understand".
* Reports should only include relevant, factual findings-not every detail or opinion.
So, the most accurate statement is that jargon should be avoided.

The Manual says admission-seeking interviews should be conducted only when:
* There is reasonable probability the subject committed the act,
* All other reasonable investigative steps are complete, and
* "The interviewer can reasonably control the place, time, and subject matter of the interview.".
Therefore, Erica must ensure control oftime, place, and contentbefore scheduling.

TheCFE Prep - Investigationswarns against relying solely on eye contact:
"Behavioural clues are harder to read ... Additionally, racial, ethnic, and economic factors should be carefully considered when observing a respondent's behaviour. Some cultures, for example, discourage looking directly at someone. Other cultures use certain body language that might be misinterpreted." Therefore, lack of eye contactcannot safely be taken as proof of dishonesty.