Question 1

All birds have wings.Kiwis have wings.Which of the following can be concluded using deductive reasoning?

Accepted Answer

A)  Kiwis are birds. 
B)  No conclusion can be obtained. 
C)  All birds are Kiwis. 
D)  Kiwis can fly. 
A)  Kiwis are birds. 
B)  No conclusion can be obtained. 
C)  All birds are Kiwis. 
D)  Kiwis can fly.

Question 2

Which of the following is most likely a short-term strategy for fraud deterrence?

Accepted Answer

A)  financial statement analysis 
B)  employee invigilation 
C)  time series analysis 
D)  evaluation of hiring practices 
A)  financial statement analysis 
B)  employee invigilation 
C)  time series analysis 
D)  evaluation of hiring practices

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

The first line of defense against accounting failures within an organization is the external auditor.

Accepted Answer

A) True 
 B)False

Question 5

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 6

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 7

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 8

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 9

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 10

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

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

Critical thinking is a necessary skill f

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

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 14

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 15

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

Accepted Answer

A) True 
 B)False

Question 16

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.

Question 17

Which of the following is a technique of fraud detection?

Accepted Answer

A)  perception of detection 
B)  analysis of financial statement 
C)  preemployment screening 
D)  evaluation of hiring practices 
A)  perception of detection 
B)  analysis of financial statement 
C)  preemployment screening 
D)  evaluation of hiring practices

Question 18

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

Accepted Answer

In addition to the fraud-related investi

Question 19

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 20

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

All birds have wings.Kiwis have wings.Which of the following can be concluded using deductive reasoning?

Which of the following is most likely a short-term strategy for fraud deterrence?

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

The first line of defense against accounting failures within an organization is the external auditor.

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

Which of the following statement is true of forensic accountants?

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

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

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

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

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

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?

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?

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

Which of the following is true of transactional accountants?

Which of the following is a technique of fraud detection?

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

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

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?

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

Transforming Data Into Evidence

Professional Responsibilities

Fundamentals of Business Valuation

Special Topics

Filters

Exam 1: Introduction to the World of Forensic Accounting

All birds have wings.Kiwis have wings.Which of the following can be concluded using deductive reasoning?

Which of the following is most likely a short-term strategy for fraud deterrence?

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

The first line of defense against accounting failures within an organization is the external auditor.

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

Which of the following statement is true of forensic accountants?

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

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

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

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

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

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?

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?

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

Which of the following is true of transactional accountants?

Which of the following is a technique of fraud detection?

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

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

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?

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

Transforming Data Into Evidence

Professional Responsibilities

Fundamentals of Business Valuation

Special Topics

Filters