Certified Fraud Examiner Practice Exam 2025 – All-in-One Guide to Master Your Certification!

The method that focuses on identifying missing items within a sequence, which may suggest the presence of hidden entries, is gap testing. This process involves analyzing data sequences—such as transaction numbers, dates, or other ordered sets—to find discrepancies or gaps. When a gap is detected, it can indicate that entries are missing or that there might be fraudulent activity occurring, as someone may have manipulated the data to conceal transactions.

Gap testing is particularly useful in contexts like accounting and fraud detection, where maintaining complete and accurate records is essential. By employing this method, investigators can ensure that all required entries are accounted for and investigate further into any anomalies that arise, potentially unveiling hidden fraudulent activities.

While other methods like data analysis, inventory reconciliation, and transaction auditing each have their merits in different contexts, they do not specifically emphasize the identification of gaps within sequences like gap testing does. Data analysis involves broad statistical evaluations, inventory reconciliation focuses on matching physical inventory to recorded accounts, and transaction auditing reviews the accuracy and validity of individual transactions rather than specifically searching for missing elements within a sequence.