Question 1

The internal auditor's functions exist to support the other three representatives of an organization:

Accepted Answer

A)  the board of directors, executive management, and the external auditor. 
B)  the board of directors, executive management, and the transactional accountant. 
C)  the transactional accountant, board of directors, and the external auditor. 
D)  the transactional accountant, executive management, and the external auditor. 
A)  the board of directors, executive management, and the external auditor. 
B)  the board of directors, executive management, and the transactional accountant. 
C)  the transactional accountant, board of directors, and the external auditor. 
D)  the transactional accountant, executive management, and the external auditor. A

Question 2

Which of the following is true of transactional accountants?

Accepted Answer

A)  They evaluate the internal control systems of an organization and test the accounts to ensure that all economic events are recorded and reported properly. 
B)  They form and express an opinion as to whether an organization's financial statements, taken as a whole, reflect its financial position on a given date and the results of its operations for a given period. 
C)  They report on the adequacy of internal controls, the accuracy and propriety of transactions. 
D)  They employ generally accepted accounting principles (GAAP) to process information useful in decision making. 
A)  They evaluate the internal control systems of an organization and test the accounts to ensure that all economic events are recorded and reported properly. 
B)  They form and express an opinion as to whether an organization's financial statements, taken as a whole, reflect its financial position on a given date and the results of its operations for a given period. 
C)  They report on the adequacy of internal controls, the accuracy and propriety of transactions. 
D)  They employ generally accepted accounting principles (GAAP) to process information useful in decision making. D

Question 3

Which of the following is recognized as the first forensic accountant?

Accepted Answer

A)  Frank J. Wilson 
B)  Maurice Peloubet 
C)  Alphonse Capone 
D)  Leslie A. Shuway 
A)  Frank J. Wilson 
B)  Maurice Peloubet 
C)  Alphonse Capone 
D)  Leslie A. Shuway A

Question 4

In 2008, the sales of the Trident Inc. went up by 10% and its stock prices increased by 20%. In 2010, the sales of the Trident Inc. went up by 15% and its stock prices increased by 30%. You conclude that in 2013, since the sales increased by 5%, the stock price will increase by 10%. Which type of reasoning are you using?

Accepted Answer

A)  deductive reasoning 
B)  intuitive reasoning 
C)  suggestive reasoning 
D)  inductive reasoning 
A)  deductive reasoning 
B)  intuitive reasoning 
C)  suggestive reasoning 
D)  inductive reasoning

Question 5

Which of the following is NOT the primary focus of a fraud examination by a forensic accountant?

Accepted Answer

A)  Who committed the fraud? 
B)  How was the fraud committed? 
C)  When was the fraud committed? 
D)  Why was the fraud committed? 
A)  Who committed the fraud? 
B)  How was the fraud committed? 
C)  When was the fraud committed? 
D)  Why was the fraud committed?

Question 6

Apart from fraud-related investigations, what other investigations are forensic accountants commonly engaged in?

Accepted Answer

In addition to the fraud-related investi

Question 7

All kids like Jelly Bean. Sam is a kid. Therefore, we can conclude that Sam likes Jelly Bean. Which type of reasoning does this indicate?

Accepted Answer

A)  intuitive reasoning 
B)  inductive reasoning 
C)  deductive reasoning 
D)  critical reasoning 
A)  intuitive reasoning 
B)  inductive reasoning 
C)  deductive reasoning 
D)  critical reasoning

Question 8

Deductive reasoning draws conclusions from patterns.

Accepted Answer

A) True 
 B)False

Question 9

Fraud deterrence strategies include statistical analysis.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following represents the relative importance of the three components of oral communication?

Accepted Answer

A)  body language - 55%, voice tone - 35%, and words - 10% 
B)  body language - 30%, voice tone - 50%, and words - 20% 
C)  body language - 45%, voice tone - 25%, and words - 30% 
D)  body language - 20%, voice tone - 10%, and words - 70% 
A)  body language - 55%, voice tone - 35%, and words - 10% 
B)  body language - 30%, voice tone - 50%, and words - 20% 
C)  body language - 45%, voice tone - 25%, and words - 30% 
D)  body language - 20%, voice tone - 10%, and words - 70%

Question 11

Which of the following is a proactive employee strategy of fraud deterrence?

Accepted Answer

A)  perception of detection 
B)  analysis of financial statement 
C)  analysis of statistical data 
D)  employee contracts 
A)  perception of detection 
B)  analysis of financial statement 
C)  analysis of statistical data 
D)  employee contracts

Question 12

Which of the following is a difference between an external auditor and a forensic accountant?

Accepted Answer

A)  An external auditor captures and records all economic transactions of the organization, whereas a forensic accountant ensures compliance with policy and procedures. 
B)  An external auditor manages the organization's accounting and internal control system, whereas a forensic accountant validates effectiveness of controls in various processes or areas of the organization. 
C)  An external auditor adds credibility to reported financial information, whereas a forensic accountant provides assurance that management is adequately identifying and mitigating risks. 
D)  An external auditor forms an opinion on the overall financial statements taken as a whole, whereas a forensic accountant addresses a specific question/issue. 
A)  An external auditor captures and records all economic transactions of the organization, whereas a forensic accountant ensures compliance with policy and procedures. 
B)  An external auditor manages the organization's accounting and internal control system, whereas a forensic accountant validates effectiveness of controls in various processes or areas of the organization. 
C)  An external auditor adds credibility to reported financial information, whereas a forensic accountant provides assurance that management is adequately identifying and mitigating risks. 
D)  An external auditor forms an opinion on the overall financial statements taken as a whole, whereas a forensic accountant addresses a specific question/issue.

Question 13

The purpose of the ________ is to form and express an opinion as to whether the organization's financial statements, taken as a whole, reflect its financial position on a given date and the results of its operations for a given period.

Accepted Answer

A)  forensic accountant 
B)  external auditor 
C)  transactional accountant 
D)  internal auditor 
A)  forensic accountant 
B)  external auditor 
C)  transactional accountant 
D)  internal auditor

Question 14

Which of the following situations shows Kelcie, a forensic accountant, exercising professional skepticism?

Accepted Answer

A)  Kelcie argues that the immediate previous year's records serve as a better basis for the investigation than the earlier years. 
B)  Kelcie believes that the reputation of the external auditor is an indicator of the reliability of the audit report. 
C)  Kelcie believes in the phrase "guilty, until proved otherwise" and does not presume innocence until she has reasonable doubt. 
D)  Kelcie verifies the reports given by the internal auditor against available evidence before using it in her reports. 
A)  Kelcie argues that the immediate previous year's records serve as a better basis for the investigation than the earlier years. 
B)  Kelcie believes that the reputation of the external auditor is an indicator of the reliability of the audit report. 
C)  Kelcie believes in the phrase "guilty, until proved otherwise" and does not presume innocence until she has reasonable doubt. 
D)  Kelcie verifies the reports given by the internal auditor against available evidence before using it in her reports.

Question 15

Define forensic accounting.

Accepted Answer

Forensic accounting is a discipline that

Question 16

Which of the following is true of an internal auditor?

Accepted Answer

A)  The responsibilities of an internal auditor extend beyond the processing functions of a transactional accountant. 
B)  A qualified opinion from the internal auditor adds credibility to the organization and its financial statements. 
C)  The internal auditor issues reports that are used by the stakeholders and other users to understand the financial statements of an organization. 
D)  The budgets, cash flow statements, income statement, and balance sheet of an organization is prepared by the internal auditor. 
A)  The responsibilities of an internal auditor extend beyond the processing functions of a transactional accountant. 
B)  A qualified opinion from the internal auditor adds credibility to the organization and its financial statements. 
C)  The internal auditor issues reports that are used by the stakeholders and other users to understand the financial statements of an organization. 
D)  The budgets, cash flow statements, income statement, and balance sheet of an organization is prepared by the internal auditor.

Question 17

All clouds are white. Some clouds are round. Which of the following can be concluded using deductive reasoning?

Accepted Answer

A)  Some clouds are white. 
B)  No conclusion can be obtained. 
C)  White clouds are round. 
D)  Round clouds are white. 
A)  Some clouds are white. 
B)  No conclusion can be obtained. 
C)  White clouds are round. 
D)  Round clouds are white.

Question 18

Write a short note on career opportunities for forensic accountants in both the private and public sectors.

Accepted Answer

The forensic accounting profession offer

Question 19

Which of the following forensic accounting investigation services includes proactive employee strategies such as preemployment screening, employee training, and employee monitoring strategies?

Accepted Answer

A)  fraud detection 
B)  fraud deterrence 
C)  fraud examination 
D)  fraud anticipation 
A)  fraud detection 
B)  fraud deterrence 
C)  fraud examination 
D)  fraud anticipation

Question 20

The accounting process has three basic steps: recording, classifying, and summarizing.

Accepted Answer

A) True 
 B)False

The internal auditor's functions exist to support the other three representatives of an organization:

Which of the following is true of transactional accountants?

Which of the following is recognized as the first forensic accountant?

Which of the following is NOT the primary focus of a fraud examination by a forensic accountant?

Apart from fraud-related investigations, what other investigations are forensic accountants commonly engaged in?

All kids like Jelly Bean. Sam is a kid. Therefore, we can conclude that Sam likes Jelly Bean. Which type of reasoning does this indicate?

Deductive reasoning draws conclusions from patterns.

Fraud deterrence strategies include statistical analysis.

Which of the following represents the relative importance of the three components of oral communication?

Which of the following is a proactive employee strategy of fraud deterrence?

Which of the following is a difference between an external auditor and a forensic accountant?

The purpose of the ________ is to form and express an opinion as to whether the organization's financial statements, taken as a whole, reflect its financial position on a given date and the results of its operations for a given period.

Which of the following situations shows Kelcie, a forensic accountant, exercising professional skepticism?

Define forensic accounting.

Which of the following is true of an internal auditor?

All clouds are white. Some clouds are round. Which of the following can be concluded using deductive reasoning?

Write a short note on career opportunities for forensic accountants in both the private and public sectors.

Which of the following forensic accounting investigation services includes proactive employee strategies such as preemployment screening, employee training, and employee monitoring strategies?

The accounting process has three basic steps: recording, classifying, and summarizing.

The Legal Environment of Forensic Accounting

Screening and Staging Engagements

Gathering Evidence Interviews and Observations

Financial Statements Analysis Reading Between the Lines

Fraud and White-Collar Crime

Conducting a Fraud Investigation

Transforming Data Into Evidence Part 1

Transforming Data Into Evidence Part 2

Professional Responsibilities

Fundamentals of Business Valuation

Special Topics

Filters

Exam 1: Introduction to the World of Forensic Accounting

The internal auditor's functions exist to support the other three representatives of an organization:

Which of the following is true of transactional accountants?

Which of the following is recognized as the first forensic accountant?

Which of the following is NOT the primary focus of a fraud examination by a forensic accountant?

Apart from fraud-related investigations, what other investigations are forensic accountants commonly engaged in?

All kids like Jelly Bean. Sam is a kid. Therefore, we can conclude that Sam likes Jelly Bean. Which type of reasoning does this indicate?

Deductive reasoning draws conclusions from patterns.

Fraud deterrence strategies include statistical analysis.

Which of the following represents the relative importance of the three components of oral communication?

Which of the following is a proactive employee strategy of fraud deterrence?

Which of the following is a difference between an external auditor and a forensic accountant?

The purpose of the ________ is to form and express an opinion as to whether the organization's financial statements, taken as a whole, reflect its financial position on a given date and the results of its operations for a given period.

Which of the following situations shows Kelcie, a forensic accountant, exercising professional skepticism?

Define forensic accounting.

Which of the following is true of an internal auditor?

All clouds are white. Some clouds are round. Which of the following can be concluded using deductive reasoning?

Write a short note on career opportunities for forensic accountants in both the private and public sectors.

Which of the following forensic accounting investigation services includes proactive employee strategies such as preemployment screening, employee training, and employee monitoring strategies?

The accounting process has three basic steps: recording, classifying, and summarizing.

The Legal Environment of Forensic Accounting

Screening and Staging Engagements

Gathering Evidence Interviews and Observations

Financial Statements Analysis Reading Between the Lines

Fraud and White-Collar Crime

Conducting a Fraud Investigation

Transforming Data Into Evidence Part 1

Transforming Data Into Evidence Part 2

Professional Responsibilities

Fundamentals of Business Valuation

Special Topics

Filters