Question 1

Which of the following exemplifies the role of an external auditor?

Accepted Answer

A)  Victor recorded the transactions entered in to by Trident, Inc. in the proper accounting period. 
B)  Victor prepared the annual budget of Trident, Inc., and he also helped the department heads prepare budgets for each department. 
C)  Victor evaluated the internal controls of Trident, Inc. and reported on the financial position as at the year end. 
D)  Victor conducted an investigation into the affairs of Trident, Inc. to allay suspicions of mismanagement of funds. 
A)  Victor recorded the transactions entered in to by Trident, Inc. in the proper accounting period. 
B)  Victor prepared the annual budget of Trident, Inc., and he also helped the department heads prepare budgets for each department. 
C)  Victor evaluated the internal controls of Trident, Inc. and reported on the financial position as at the year end. 
D)  Victor conducted an investigation into the affairs of Trident, Inc. to allay suspicions of mismanagement of funds.

Question 2

Which of the following are the two major components of forensic accounting services?

Accepted Answer

A)  fraud detection services and fraud deterrence services 
B)  expert services and consulting services 
C)  investigative services and litigation services 
D)  fraud examination services and business valuations services 
A)  fraud detection services and fraud deterrence services 
B)  expert services and consulting services 
C)  investigative services and litigation services 
D)  fraud examination services and business valuations services

Question 3

Which of the following best describes a whistle blower complaint?

Accepted Answer

A)  It is an informal disclosure of personal issues of an employee with other employees within an organization. 
B)  It is a disclosure by a person of wrong doing or misconduct within an organization. 
C)  It is an annual complaint forum designed to discuss issues of an organization. 
D)  It is a complaint raised by the SEC toward an organization. 
A)  It is an informal disclosure of personal issues of an employee with other employees within an organization. 
B)  It is a disclosure by a person of wrong doing or misconduct within an organization. 
C)  It is an annual complaint forum designed to discuss issues of an organization. 
D)  It is a complaint raised by the SEC toward an organization.

Question 4

The need or motive of the fraud is not the immediate challenge of a fraud examination.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is the objective of an external auditor?

Accepted Answer

A)  form an opinion on the overall financial statements taken as a whole 
B)  capture and record all economic transactions of the organization 
C)  ensure compliance with policy and procedures; offer recommendations for improvement of internal controls 
D)  address a specific question/issue 
A)  form an opinion on the overall financial statements taken as a whole 
B)  capture and record all economic transactions of the organization 
C)  ensure compliance with policy and procedures; offer recommendations for improvement of internal controls 
D)  address a specific question/issue

Question 6

Which of the following forensic accounting services primarily focuses on determining who committed the fraud, the scheme of the fraud, the time frame and duration, how much was taken, and who else was involved?

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 7

"Trust, but verify" is the general rule while exercising professional skepticism.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following exemplifies the role of an internal auditor?

Accepted Answer

A)  Chloe classifies the transactions of Pole Star, Inc. and records it in the books of accounts. 
B)  Chloe reports on the sufficiency of the insurance policies taken out on the assets of Pole Star, Inc. 
C)  Chloe reports on the financial position of Pole Star, Inc. at the end of the accounting period. 
D)  Chloe assists the management of Pole Star, Inc. to determine the taxes and tax benefits.. 
A)  Chloe classifies the transactions of Pole Star, Inc. and records it in the books of accounts. 
B)  Chloe reports on the sufficiency of the insurance policies taken out on the assets of Pole Star, Inc. 
C)  Chloe reports on the financial position of Pole Star, Inc. at the end of the accounting period. 
D)  Chloe assists the management of Pole Star, Inc. to determine the taxes and tax benefits..

Question 9

Which of the following statement is true of forensic accountants?

Accepted Answer

A)  They should have a reactive mindset. 
B)  They should focus their investigations on numbers rather than looking beyond them. 
C)  They should embrace systematic thinking. 
D)  They must trust their preexisting judgments. 
A)  They should have a reactive mindset. 
B)  They should focus their investigations on numbers rather than looking beyond them. 
C)  They should embrace systematic thinking. 
D)  They must trust their preexisting judgments.

Question 10

Expert reports prepared in the course of litigation are exempt from professional report writing standards.

Accepted Answer

A) True 
 B)False

Question 11

Forensic accounting can be defined as the application of financial facts to legal situations.

Accepted Answer

A) True 
 B)False

Question 12

Fraud detection and fraud examination describes reactive strategies while fraud deterrence describes proactive strategies.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is a process flowing from a set of specific observations, facts, or data to a working hypothesis and then a general conclusion?

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 14

Which of the following best describes the term forensic accounting?

Accepted Answer

A)  It is a discipline that deals with the preparation and analysis of financial statements of companies. 
B)  It is the use of accounting principles to consolidate financial statements of foreign corporations. 
C)  It is a discipline that primarily deals with methods of preparation of financial budgets of a company. 
D)  It is the use of accounting theories, principles, or analyses in a legal action, often through expert witness testimony. 
A)  It is a discipline that deals with the preparation and analysis of financial statements of companies. 
B)  It is the use of accounting principles to consolidate financial statements of foreign corporations. 
C)  It is a discipline that primarily deals with methods of preparation of financial budgets of a company. 
D)  It is the use of accounting theories, principles, or analyses in a legal action, often through expert witness testimony.

Question 15

Which of the following is a difference between fraud examination and fraud detection?

Accepted Answer

A)  Fraud examination is done before a fraud has been committed, whereas fraud detection is done after a fraud has been committed. 
B)  Fraud examination is the investigation specific allegations or suspicions of fraud, whereas fraud detection is the identification of an error or irregularity after it has occurred. 
C)  Fraud examination focuses on the time and duration of the fraud, whereas fraud detection focuses on the need or motive of the fraud. 
D)  Fraud examination adapts proactive strategies, whereas fraud detection adapts reactive strategies. 
A)  Fraud examination is done before a fraud has been committed, whereas fraud detection is done after a fraud has been committed. 
B)  Fraud examination is the investigation specific allegations or suspicions of fraud, whereas fraud detection is the identification of an error or irregularity after it has occurred. 
C)  Fraud examination focuses on the time and duration of the fraud, whereas fraud detection focuses on the need or motive of the fraud. 
D)  Fraud examination adapts proactive strategies, whereas fraud detection adapts reactive strategies.

Question 16

Write a short note on value of critical thinking for forensic accountants.

Accepted Answer

Critical thinking is a necessary skill f

Question 17

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

Accepted Answer

A)  An internal auditor conducts the audit because a deficiency has been identified, whereas an external auditor conducts audits on a recurring basis. 
B)  An internal auditor manages accounting and internal control of an organization, whereas an external auditor examines the financial data of an organization. 
C)  An internal auditor's reports are used by the users of the financial statements, whereas the external auditor's reports are used by the management and internal auditor. 
D)  An internal auditor reports on the level of compliance with a company's internal policies, whereas the external auditor reports on the level of compliance with external laws and regulations. 
A)  An internal auditor conducts the audit because a deficiency has been identified, whereas an external auditor conducts audits on a recurring basis. 
B)  An internal auditor manages accounting and internal control of an organization, whereas an external auditor examines the financial data of an organization. 
C)  An internal auditor's reports are used by the users of the financial statements, whereas the external auditor's reports are used by the management and internal auditor. 
D)  An internal auditor reports on the level of compliance with a company's internal policies, whereas the external auditor reports on the level of compliance with external laws and regulations.

Question 18

Which of the following defines the term deductive reasoning?

Accepted Answer

A)  It is defined as reasoning from the general to the specific. 
B)  It is defined as reasoning from a logically valid conclusion to the premises. 
C)  It is defined as generalizing results to arrive at a valid conclusion. 
D)  It is defined as reasoning from particular facts to general conclusions. 
A)  It is defined as reasoning from the general to the specific. 
B)  It is defined as reasoning from a logically valid conclusion to the premises. 
C)  It is defined as generalizing results to arrive at a valid conclusion. 
D)  It is defined as reasoning from particular facts to general conclusions.

Question 19

A ________ records, classifies and summarizes the financial transactions a company.

Accepted Answer

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

Question 20

Fact witnesses can express opinions but expert witnesses cannot.

Accepted Answer

A) True 
 B)False

Which of the following exemplifies the role of an external auditor?

Which of the following are the two major components of forensic accounting services?

Which of the following best describes a whistle blower complaint?

The need or motive of the fraud is not the immediate challenge of a fraud examination.

Which of the following is the objective of an external auditor?

Which of the following forensic accounting services primarily focuses on determining who committed the fraud, the scheme of the fraud, the time frame and duration, how much was taken, and who else was involved?

"Trust, but verify" is the general rule while exercising professional skepticism.

Which of the following exemplifies the role of an internal auditor?

Which of the following statement is true of forensic accountants?

Expert reports prepared in the course of litigation are exempt from professional report writing standards.

Forensic accounting can be defined as the application of financial facts to legal situations.

Fraud detection and fraud examination describes reactive strategies while fraud deterrence describes proactive strategies.

Which of the following is a process flowing from a set of specific observations, facts, or data to a working hypothesis and then a general conclusion?

Which of the following best describes the term forensic accounting?

Which of the following is a difference between fraud examination and fraud detection?

Write a short note on value of critical thinking for forensic accountants.

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

Which of the following defines the term deductive reasoning?

A ________ records, classifies and summarizes the financial transactions a company.

Fact witnesses can express opinions but expert witnesses cannot.

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

Which of the following exemplifies the role of an external auditor?

Which of the following are the two major components of forensic accounting services?

Which of the following best describes a whistle blower complaint?

The need or motive of the fraud is not the immediate challenge of a fraud examination.

Which of the following is the objective of an external auditor?

Which of the following forensic accounting services primarily focuses on determining who committed the fraud, the scheme of the fraud, the time frame and duration, how much was taken, and who else was involved?

"Trust, but verify" is the general rule while exercising professional skepticism.

Which of the following exemplifies the role of an internal auditor?

Which of the following statement is true of forensic accountants?

Expert reports prepared in the course of litigation are exempt from professional report writing standards.

Forensic accounting can be defined as the application of financial facts to legal situations.

Fraud detection and fraud examination describes reactive strategies while fraud deterrence describes proactive strategies.

Which of the following is a process flowing from a set of specific observations, facts, or data to a working hypothesis and then a general conclusion?

Which of the following best describes the term forensic accounting?

Which of the following is a difference between fraud examination and fraud detection?

Write a short note on value of critical thinking for forensic accountants.

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

Which of the following defines the term deductive reasoning?

A ________ records, classifies and summarizes the financial transactions a company.

Fact witnesses can express opinions but expert witnesses cannot.

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