Which of the following is a Daubert criterion that a trial judge should consider when evaluating expert testimony?

Which of the following is a Daubert criterion that a trial judge should consider when evaluating expert testimony?

A. the degree of acceptance of a method within a professional community
B. whether a theory has been peer-reviewed
C. the known or potential rate of error of a method
D. all of the above


Answer: NA

T/F: The Fair Credit Reporting Act requires that consent be acquired prior to obtaining an individual's credit information.

T/F: The Fair Credit Reporting Act requires that consent be acquired prior to obtaining an individual's credit information.

Answer: true

T/F: A pretext is the use of deception to obtain information about someone from another party who might not otherwise disclose such information.

T/F: A pretext is the use of deception to obtain information about someone from another party who might not otherwise disclose such information.

Answer: true

T/F: Social networking web sites are resources a forensic accountant might use to obtain information about an individual's family and other personal matters.

T/F: Social networking web sites are resources a forensic accountant might use to obtain information about an individual's family and other personal matters.

Answer: true

Each of the following is an advantage of searching public records except:

Each of the following is an advantage of searching public records except:

A. the search can be done in secret
B. it it a legal source of information
C. results cannot be replicated by others
D. gaining access is fast and inexpensive


Answer: C. results cannot be replicated

T/F: Public records can be used by a forensic accountant to support or refine a fraud hypothesis.

T/F: Public records can be used by a forensic accountant to support or refine a fraud hypothesis.

Answer: true

A legal auditory observation includes which of the following?

A legal auditory observation includes which of the following?

A. secretly recording a conversation in a meeting room
B. listening to a conversation in a restaurant
C. recording a telephone conversation without informing the person with whom you are talking
d. all of the above


Answer: b. listening to a conversation in a restaurant

A legal visual observation includes each of the following except:

A legal visual observation includes each of the following except:

A. searching a suspect's trash can for evidence
B. observing the condition of a residence
C. assessing the location of a business enterprise
D. reading a suspect's personal diary


Answer: D. reading a suspect's personal diary

T/F: Forensic accountants must exercise caution when making engagement-related observations to ensure they are legal and can thus be used as a reliable basis for forming an expert opinion.

T/F: Forensic accountants must exercise caution when making engagement-related observations to ensure they are legal and can thus be used as a reliable basis for forming an expert opinion.

Answer: true

T/F: If an interviewee is a public employee, he or she is entitled to have an attorney present at an interview if there is a possibility of exposure to criminal liability.

T/F: If an interviewee is a public employee, he or she is entitled to have an attorney present at an interview if there is a possibility of exposure to criminal liability.

Answer: true

T/F: Employees always have the right to counsel when being interviewed about company matters.

T/F: Employees always have the right to counsel when being interviewed about company matters.

Answer: false

Which of the following is not a type of question normally employed in an interview process?

Which of the following is not a type of question normally employed in an interview process?

A. informational questions
B. closing questions
C. introductory questions
D. transitional questions


Answer: d. transitional questions

T/F: It is always best to start a series of interviews by talking to the target first.

T/F: It is always best to start a series of interviews by talking to the target first.

Answer: false

T/F: The convert taping of interviews is considered the most effective means of obtaining honest answers from the interviewee.

T/F: The convert taping of interviews is considered the most effective means of obtaining honest answers from the interviewee.

Answer: false

Memorializing an interview involves which of the following actions?

Memorializing an interview involves which of the following actions?

A. Asking detailed questions
B. Tape recording the interview discreetly
C. Transcribing notes into a memorandum of interview
D. All of the above are aspects of memorializing an interview


Answer: C. transcribing notes into a memorandum of interview

T/F: In the actual conduct of an interview, forensic accountants generally start wth introductory questions and move to informational questions.

T/F: In the actual conduct of an interview, forensic accountants generally start wth introductory questions and move to informational questions.

Answer: true

Which of the following is not a fundamental component of the planning stage of an interview?

Which of the following is not a fundamental component of the planning stage of an interview?

A. determining how to establish rapport
B. developing a question bank
C. considering how to intimidate a witness
D. developing an interview schedule


Answer: C. considering how to intimidate a witness

T/F: Interrogation is an interview technique commonly employed by a forensic accountant in a fraud investigation.

T/F: Interrogation is an interview technique commonly employed by a forensic accountant in a fraud investigation.

Answer: false

T/F: A formal interview is a unsystematic method to which the interviewer decides on the question as the interview progresses.

T/F: A formal interview is a unsystematic method to which the interviewer decides on the question as the interview progresses.

Answer: false

T/F: An interview is a purposeful dialogue through which information is sought and exchanged.

T/F: An interview is a purposeful dialogue through which information is sought and exchanged.

Answer: true

Effective interviewing requires each of the following except:

Effective interviewing requires each of the following except:

A. active listening
B. planning
C. staging
D. execution
E. all of the above


Answer: E. all of the above

T/F: Stress is often created when the interviewer respects and honors an interviewee's personal space.

T/F: Stress is often created when the interviewer respects and honors an interviewee's personal space.

Answer: false

All of the following are conceptualized zones related to an individual's personal space except?

All of the following are conceptualized zones related to an individual's personal space except?

A. public zone
B. personal zone
C. intimate zone
D. preferential zone


Answer: D. preferential zone

Which of the following should a forensic accountant seek to establish in an interview?

Which of the following should a forensic accountant seek to establish in an interview?

A. a dominant position
B. rapport
C. friendship
D. none of the above


Answer: B. rapport

T/F: Stress can manifest itself through either physical or emotional symptoms.

T/F: Stress can manifest itself through either physical or emotional symptoms.

Answer: true

T/F: Stress is defined as an emotional and physical strain caused by one's response to pressure form the outside world.

T/F: Stress is defined as an emotional and physical strain caused by one's response to pressure form the outside world.

Answer: true

You are sitting a table talking to your instructor, and he or she is leaning toward you. This might be indicate what?

You are sitting a table talking to your instructor, and he or she is leaning toward you. This might be indicate what?

A. hostility
B. domination
C. interest
D. indifference


Answer: C. interest

Which of the following might be considered an indication of hostility?

Which of the following might be considered an indication of hostility?

A. palms extended upward
B. rubbing one's face
C. pointing a figure
D. shaking one's head


Answer: C. pointing a figure

T/F: Most experts believe that the hands display more emotion than any other part of the body.

T/F: Most experts believe that the hands display more emotion than any other part of the body.

Answer: true

An active listener demonstrates each of the following attributes except:

An active listener demonstrates each of the following attributes except:

A. anticipates questions while the speaker is talking
B. allows the speaker to finish his or her statement
C. repeats the interviewee's statement by paraphrasing the message
D. searches for the balance between an interviewee's words and his or her body language


Answer: a. anticipates questions while the speaker is talking

Noise is a communication constraint. Each of the following is a type of noise except:

Noise is a communication constraint. Each of the following is a type of noise except:

A. bad phone connection
B. fear
C. the nature of the allegation
D. attitude of the sender


Answer: C. the nature of the allegation

For a communication to be understood, it must be properly:

For a communication to be understood, it must be properly:

A. employed
B. decoded
C. deployed
D. referenced


Answer: b. decoded

Each of the following is a channel of communication expect:

Each of the following is a channel of communication expect:

A. face to face
B. email
C. voice tonal quality
D. telephone


Answer: C. voice tonal quality

T/F: In the communication process, the sender is the only communicator.

T/F: In the communication process, the sender is the only communicator.

Answer: false

Characteristics of "good" research include all of the following except

Characteristics of "good" research include all of the following except

A. is guided by a working hypothesis
b. employs a reliable methodology
c. has a clear problem statement
d. is based entirely on secondary data


Answer: d. is based entirely on secondary data

Which of the following is a useful and reliable Internet source?

Which of the following is a useful and reliable Internet source?

A. LexisNexis
B. William Hellemn, CPA website
C. Southern College's website
D. Wikipedia
E. all of the above


Answer: A. LexisNexis

T/F: Internet sources such as personal websites and chat rooms always provide reliable data that is consistent with the Daubert standard.

T/F: Internet sources such as personal websites and chat rooms always provide reliable data that is consistent with the Daubert standard.

Answer: false

Each of the following is an example of an information source for secondary research except

Each of the following is an example of an information source for secondary research except

A. published court cases
B. market value appraisal prepared for the engaging organizaiton
C. academic publications
D. databases with historical market transactions
E. all of the above


Answer: B. a market value appraisal prepared for the engaging organization

T/F: Secondary research is helpful to a forensic accountant in refining hypotheses, arriving at critical assumptions, and selecting analysis methods.

T/F: Secondary research is helpful to a forensic accountant in refining hypotheses, arriving at critical assumptions, and selecting analysis methods.

Answer: true

T/F: A key function of research is to identify the data that need to be collected and analyzed.

T/F: A key function of research is to identify the data that need to be collected and analyzed.

Answer: true

T/F: A forensic accountant always analyzes all possible data that can be collected.

T/F: A forensic accountant always analyzes all possible data that can be collected.

Answer: false

Each the following is an example of primary research except:

Each the following is an example of primary research except:

A. interviewing witnesses
B. examination of email histories
C. analysis of bank records
D. collection of published economic data
e. all of the above


Answer: D. collection of published economic data

T/F: Research is the collection of sufficient relevant facts and data in order to develop and support a conclusion.

T/F: Research is the collection of sufficient relevant facts and data in order to develop and support a conclusion.

Answer: true

T/F: There is one specific way in which the scientific process can be applied to a forensic accounting engagement.

T/F: There is one specific way in which the scientific process can be applied to a forensic accounting engagement.

Answer: false

T/F: When arriving at a conclusion, a forensic accountant uses both inductive and deductive reasoning based on the evidence gathered.

T/F: When arriving at a conclusion, a forensic accountant uses both inductive and deductive reasoning based on the evidence gathered.

Answer: true

When collecting evidence, it is recommend that a forensic accountant:

When collecting evidence, it is recommend that a forensic accountant:

A. number and date all evidence considered
B. put the evidence in alphabetic order
C. put the evidence in chronologocial order
D. complete similar items in separate binders


Answer: A. numbers and date all evidence considered

When interpreting data, a forensic accountant is trying to determine the probability that the hypothesis is true. In this process, the accountant must be careful not to ignore?

When interpreting data, a forensic accountant is trying to determine the probability that the hypothesis is true. In this process, the accountant must be careful not to ignore?

A. negative facts
B. inconsistencies in the data
C. discrepancies that challenge the theory of the case
D. none of the above should be ignored


Answer: D. none of the above should be ignored

In order to test a hypothesis, a forensic accountant does which of the following?

In order to test a hypothesis, a forensic accountant does which of the following?

A. Performs a certified audit
B. Gathers evidence
C. Watches how other forensic accountants do it
D. Follows GAAP


Answer: B. Gathers evidence

T/F: A hypothesis is a tentative explanation resulting from preliminary observations.

T/F: A hypothesis is a tentative explanation resulting from preliminary observations.

Answer: true

Which of the following is NOT a step in the scientific approach?

Which of the following is NOT a step in the scientific approach?

A. draw conclusions
B. gather evidence
C. define the purpose
D. testify under oath


Answer: D. testify under oath

The best approach for gathering, synthesizing, and summarizing large amounts of evidence is:

The best approach for gathering, synthesizing, and summarizing large amounts of evidence is:

A. the forensic approach
B. the GAAP approach
C. the scientific approach
D. the legal evidence approach


Answer: C. the scientific approach

T/F: The jurisdiction of a case impacts how the case is developed and how evidence is presented.

T/F: The jurisdiction of a case impacts how the case is developed and how evidence is presented.

Answer: true

Understanding the type of case (civil or criminal) is useful to a forensic accountant in each of the following areas except:

Understanding the type of case (civil or criminal) is useful to a forensic accountant in each of the following areas except:

A. determining the requisite burden of proof
B. evidence-gathering considerations
C. communications between a forensic accountant and an attorney
D. scope of the engagement
E. manner in which an expert opinion is expressed


Answer: C. communication between a forensic accountant and an attorney

T/F: If a case is framed properly, it will help a forensic accountant identify the legally sufficient manner in which to communicate an opinion.

T/F: If a case is framed properly, it will help a forensic accountant identify the legally sufficient manner in which to communicate an opinion.

Answer: true

Which of the following is not a fact considered by a forensic accountant in framing a case?

Which of the following is not a fact considered by a forensic accountant in framing a case?

A. date of the engagement letter
B. jurisdiction
C. nature of the engagement
D. professional standards
E. all of the above


Answer: A. date of the engagement letter

T/F: Framing a case involves identifying the key parameters that drive case development.

T/F: Framing a case involves identifying the key parameters that drive case development.

Answer: true

T/F: The AICPA requires an engagement letter for all litigation services provided by a forensic accountant.

T/F: The AICPA requires an engagement letter for all litigation services provided by a forensic accountant.

Answer: false

T/F: A Kovel letter provides basis for protecting the communications of a forensic accountant under the attorney-client privilege.

T/F: A Kovel letter provides basis for protecting the communications of a forensic accountant under the attorney-client privilege.

Answer: true

T/F: It is not possible to modify an engagement letter once is it signed by all parties.

T/F: It is not possible to modify an engagement letter once is it signed by all parties.

Answer: false

T/F: An engagement letter is a contract that defines the legal relationship, as well as the obligations of each party to an engagement.

T/F: An engagement letter is a contract that defines the legal relationship, as well as the obligations of each party to an engagement.

Answer: true

An engagement letter identifies all of the following aspects of an engagement except:

An engagement letter identifies all of the following aspects of an engagement except:

A. the party who will cross-examine witnesses in a trial
B. responsible parties
C. compensation agreement
D. scope limitations
E. nature of the relationship


Answer: A. the party who will cross-examine witnesses in a trial

The preferred compensation arrangement for a forensic accountant is:

The preferred compensation arrangement for a forensic accountant is:

A. percentage of the damage award
B. contingent fee based on the final outcome of an engagement
C. hourly fee with a replenished retainer
D. all of the above


Answer: C. hourly fee with a replenished retainer

T/F: A retainer is an advance payment for services that is earned as services are completed.

T/F: A retainer is an advance payment for services that is earned as services are completed.

Answer: true

Determining the nature and scope of a proposed engagement allows a forensic accountant to do which of the following?

Determining the nature and scope of a proposed engagement allows a forensic accountant to do which of the following?

A. assess the engagement's risk
B. plan the engagement
C. develop a supervision plan
D. price the engagement
E. all of the above


Answer: B. plan the engagement

T/F: If all members of a firm have passed the CPA exam, they have appropriate competencies for any type of forensic accountant engagement.

T/F: If all members of a firm have passed the CPA exam, they have appropriate competencies for any type of forensic accountant engagement.

Answer: false

The best source of information for identifying conflicts of interest is:

The best source of information for identifying conflicts of interest is:

A. the engaging attorney
B. the presiding judge
C. reading the complaint
D. talking to the plaintiff


Answer: C. reading the complaint

T/F: Where there is not real conflict of interest, but a perception of a conflict exists, the best practice is to reject the engagement.

T/F: Where there is not real conflict of interest, but a perception of a conflict exists, the best practice is to reject the engagement.

Answer: true

T/F: If a potentail conflict exists, it must be identified, written consents must be secured, and the matter must be fully disclosed after an engagement has been completed.

T/F: If a potentail conflict exists, it must be identified, written consents must be secured, and the matter must be fully disclosed after an engagement has been completed.

Answer: fasle

T/F: Independence means that objectivity is not impaired.

T/F: Independence means that objectivity is not impaired.

Answer: true

Which of the following is an attribute of objectivity?

Which of the following is an attribute of objectivity?

A. involved
B. unbiased
C. participating
D. engaged


Answer: B. unbiased

T/F: Performing a conflicts of interest check is must before accepting an engagement.

T/F: Performing a conflicts of interest check is must before accepting an engagement.

Answer: true

A "good" client will exhibit all of the following attributes except:

A "good" client will exhibit all of the following attributes except:

A. prompt payment
B. Timely communication
C. respect for the role of an expert
D. reluctance to share information
E. all of the above


Answer: d. reluctance to share information

A "bad" client will exhibit one and possibly more of the following attributes except:

A "bad" client will exhibit one and possibly more of the following attributes except:

A. slow payment
B. rush assignments
C. failing to provide material evidence
D. pirating an expert's name/reputation
E. all of the above


Answer: E. all of the above

Which of the following is NOT a primary factor in deterring whether an engagement should be accepted or rejected?

Which of the following is NOT a primary factor in deterring whether an engagement should be accepted or rejected?

A. the engaging attorney's reputation
B. professional circumstances
C. compensation
D. competence and due care
E. conflicts of interest


Answer: b. professional circumstances

T/F: Deciding to accept or reject an engagement requires careful consideration of the case's risks and rewards.

T/F: Deciding to accept or reject an engagement requires careful consideration of the case's risks and rewards.

Answer: true

A primary purpose of expert testimony is to:

A primary purpose of expert testimony is to:

A. ensure that testimony by other witnesses is relevant
B. assist the trier of fact in understanding complex issues
C. help an attorney present opening and closing arguments
D. none the above


Answer: B. assist the trier of fact in understanding complex issues

In most states, the admissibility of evidence is governed by:

In most states, the admissibility of evidence is governed by:

A. Federal Rules of Civil Procedure
B. Evidence Admission Procedures
C. Common Law Provisions
D. Federal Rules of Evidence


Answer: D. Federal Rules of Evidence

T/F: In a criminal trial, witnesses are never permitted to offer their opinions as evidence.

T/F: In a criminal trial, witnesses are never permitted to offer their opinions as evidence.

Answer: fasle

T/F: a preponderance of the evidence describes a higher standard of proof than clear and convincing.

T/F: a preponderance of the evidence describes a higher standard of proof than clear and convincing.

Answer: false

T/F: In the trial stage of a legal proceeding, vior dire refers to the process during which the judge and participating attorneys question prospective jurors about their backgrounds and beliefs.

T/F: In the trial stage of a legal proceeding, vior dire refers to the process during which the judge and participating attorneys question prospective jurors about their backgrounds and beliefs.

Answer: true

T/F: Rule 26(a)(2) requires that all expert opinions such as those of a forensic accountant be disclosed to the opposing party during the discovery stage.

T/F: Rule 26(a)(2) requires that all expert opinions such as those of a forensic accountant be disclosed to the opposing party during the discovery stage.

Answer: true

The Federal Rules of Civil Procedure govern the ways in which information is gathered in a civil action. These rules are applicable to which stage of a civil case?

The Federal Rules of Civil Procedure govern the ways in which information is gathered in a civil action. These rules are applicable to which stage of a civil case?

A. jury deliberations
B. sentencing
C. juror selection
D. discovery


Answer: D. discovery

Which of the following is a specific stage in a civil trial?

Which of the following is a specific stage in a civil trial?

A. opening remarks stage
B. juror testimony stage
C. pleading stage
D. none of the above


Answer: C. pleading stage

T/F: TV programs and movies present realistic portrayals of how the US judicial system works.

T/F: TV programs and movies present realistic portrayals of how the US judicial system works.

Answer: false

Divisions of private law that commonly involve the services of forensic accountants include all of the following except:

Divisions of private law that commonly involve the services of forensic accountants include all of the following except:

A. Partnership law
B. tort law
C. sales law
D. contract law
E. All of the above


Answer: E. all of the above

Each of the following is a division of public law except:

Each of the following is a division of public law except:

A. contract law
B. criminal law
C. administrative law
D. constitutional law


Answer: A. Contract law

T/F: A juror is permitted to conduct personal research in an effort to obtain additional information regarding a case.

T/F: A juror is permitted to conduct personal research in an effort to obtain additional information regarding a case.

Answer: false

T/F: The judicial process is administered and managed by the trial attorneys.

T/F: The judicial process is administered and managed by the trial attorneys.

Answer: false

Each of the following is a function of law except:

Each of the following is a function of law except:

A. preservation of the state
B. ensuring fairness is achieved in all trials
C. protection of property
D. dispute resolution


Answer: B. ensuring fairness is achieved in all trials

T/F: According to the AICPA, a working knowledge of the legal environment is a core forensic accounting skill.

T/F: According to the AICPA, a working knowledge of the legal environment is a core forensic accounting skill.

Answer: true

Fraud deterrence includes the following proactive strategies to prevent fraud except:

Fraud deterrence includes the following proactive strategies to prevent fraud except:

A. Whistleblower rewards
B. Preemployment screening
C. Employee training
D. Code of Conduct


Answer: a. whistleblower rewards

Forensic accounting organizations, such as ACFE, NACVA, and the AICPA, provide valuable services to their members. Which of the following is not a service provided by these organizations?

Forensic accounting organizations, such as ACFE, NACVA, and the AICPA, provide valuable services to their members. Which of the following is not a service provided by these organizations?

A. netowrking opportunities
B. continuing education opportunities
C. certifications
D. assurance of a successful forensic accounting practice


Answer: D. assurance of a successful forensic accounting practice

When preparing a written report, a forensic accountant should do which of the following?

When preparing a written report, a forensic accountant should do which of the following?

A. write clearly
b. eliminate all grammatical erros
c. be concise, but cover the material in a comprehensive manner
d. all of the above are correct


Answer: d. all of the above are correct

You eat an Apple and get cramps. You eat a pear and get cramps. You eat a cherry and get cramps. You conclude that eating fruit gives you cramps. This is an example of what type of reasoning

You eat an Apple and get cramps. You eat a pear and get cramps. You eat a cherry and get cramps. You conclude that eating fruit gives you cramps. This is an example of what type of reasoning

A. Deductive Reasoning
B. Reciprocal Reasoning
C. Inductive Reasoning
D. Linear Reasoning


Answer: c. Inductive reasoning

If all dogs eat meat, and Sheldon eats meat, what can we conclude using deductive reasoning?

If all dogs eat meat, and Sheldon eats meat, what can we conclude using deductive reasoning?

A. Sheldon is a dog
B. Meat eats Sheldon
C. Sheldon enjoys meat
D. It is not possible to conclude that Sheldon is a dog


Answer: D. It is not possible to conclude that Sheldon is a dog

Which of the following is NOT a critical skill of forensic accountants?

Which of the following is NOT a critical skill of forensic accountants?

A. critical thinking ability
B. reasoning ability
C. prosecution ability
D. communication ability


Answer: C. prosecution ability

What is the objective of a fraud examination?

What is the objective of a fraud examination?

A. add credibility to reported financial statements
B. investigate suspicions and accusations of fraud
C. fulfill a regulatory requirement
D. provide financial statements to stakeholders


Answer: B. investigate suspicions and accusations of fraud

Which of the following is NOT a significant practice area of forensic accounting?

Which of the following is NOT a significant practice area of forensic accounting?

A. family law
B. fraud detection
C. Tax and merger business valuations
D. Independent audits of financial statements


Answer: D. independent audits of financial statements

Which of the following is NOTa service provided by forensic accountants?

Which of the following is NOTa service provided by forensic accountants?

A. business valuations
B. fraud detection
C. fraud examination
D. Financial statement reporting


Answer: D. financial statement reporting

Which statement best describes the mindset of a forensic accountant?

Which statement best describes the mindset of a forensic accountant?

A. A stubborn attitude based on life lessons
B. An instinct to explore problems that challenge conventional wisdom
C. A preconceived idea about how a fraud was conducted
D. A conservative approach to conducting an investigation


Answer: B. An instinct to explore problems that challenge conventional wisdom

Who is widely recognized as the first forensic accountant?

Who is widely recognized as the first forensic accountant?

A. Al Capone
B. Elliot Ness
C. Frank J. Wilson
D. J. Edgar Hoover


Answer: C. Frank J. Wilson