Deck 2: The Legal Environment of Forensic Accounting

Question 1

Which of the following is a difference between civil law and criminal law?

A) The purpose of civil law is to resolve disputes between individuals or entities, whereas the purpose of criminal law is to convict and punish offenders.
B) Under civil law, the burden of proof is on the government, whereas under criminal law, the burden of proof is on the plaintiff.
C) Under civil law, the responding party is the government, whereas under criminal law, the responding party is the defendant.
D) Civil law sanctions may include imprisonments, whereas criminal law sanctions include compensations but not imprisonments.

Answer 1

A

Question 2

Which of the following is true of our justice system?

A) The law is fast; litigation lasts for one or two hours.
B) Trials (aside from the verdict) provide a lot of drama.
C) Closing arguments and cross examination are the most important parts of a trial.
D) The role of the jury is not passive.

Answer 2

D

Question 3

Which of the following stages applies to a criminal case but not to a civil case?

A) pleading stage
B) discovery stage
C) trial stage
D) sentencing stage

Answer 3

D

Question 4

Which of the following is a difference between criminal cases and civil cases?

A) A complaint should be accompanied by an investigator's affidavit to initiate a civil case, whereas filing a complaint is sufficient to initiate a criminal case.
B) A defendant has an amount of time (20 days) to respond to the complaint in a civil case, whereas he or she enters a plea to the charge during the first appearance in a criminal case.
C) A defendant can only enter a plea of guilty or not guilty to charges in a civil case, whereas he or she can also claim lack of sufficient knowledge to respond or assert affirmative defenses in a criminal case.
D) Failing to file a timely response can result in a default judgment in a civil case, whereas failing to file a timely response can result in a declaratory judgment in a criminal case.

Question 5

Rule 705 allows an expert to state an opinion without first testifying to the underlying facts or data.

Question 6

A Daubert hearing decides whether the expert is correct.

Question 7

Which of the following is an example of sanctions in civil cases?

A) capital punishment
B) home confinement
C) probation
D) compensation for economic damages

Question 8

Which of the following best describes civil justice?

A) justice between parties to a dispute, regardless of any larger principles that might be involved
B) justice concerned with the private affairs of citizens and their respective rights
C) justice fairly administered according to the rules of substantive law (such as a fair trial)
D) justice that conforms to a moral principle

Question 9

Which of the following rules of Federal Rules of Civil Procedure limits discovery of an expert's communications with engaging counsel and any report drafts that may be prepared?

A) Rule 26(b)(1)
B) Rule 26(b)(4)
C) Rule 26(a)(2)
D) Rule 26(e)(2)

Question 10

Which of the following forms of justice is fairly administered according to the rules of statutory law?

A) social justice
B) civil justice
C) substantial justice
D) criminal justice

Question 11

In the case of a jury trial,the trial stage begins with the selection of a jury.

Question 12

Mediation is a "mini trial" wherein each party presents its case to one or more mediators,who render a binding decision that generally cannot be appealed.

Question 13

In criminal cases,sanctions generally involve compensation for loss or wrongs suffered.

Question 14

The trial judge is challenged to carefully qualify the expert but not the testimony of the expert.

Question 15

Igor,a wealthy entrepreneur,was involved in embezzlement of cash from the office and tax evasion.If discovered,which of the following will he be charged under?

A) criminal law
B) constitutional law
C) administrative law
D) civil law

Question 16

Tax evasion,health care frauds,and bank frauds are covered under civil laws.

Question 17

Which of the following scenarios,if identified,can result in a mistrial?

A) Ginny, one of the jury, avidly followed the polls conducted by the media to know the people's opinion on the trial.
B) Derek, the defense attorney, concealed his client's drinking habit as he felt it would be prejudicial to the client in the ongoing case of banking fraud.
C) Silvia, the attorney for the prosecution, raised an objection for every evidence presented by the defense attorney.
D) Rico, an expert witness, stated an opinion on the evidence without first testifying to the underlying facts.

Question 18

The burden of proof is the obligation of the defendant to prove his or her innocence.

Question 19

An expert's testimony is more credible than that of other witnesses.

Question 20

Personal justice is justice concerned with the private affairs of citizens and their respective rights.

Question 21

The trial stage of a legal proceeding involves the voir dire process.What does this process involve?

A) It is a process wherein residents from the local county are randomly selected and summoned to the court to serve as prospective jurors.
B) It is a process wherein the jurors collectively evaluate the evidence to render a verdict.
C) It is a process wherein all evidence is presented to the jury through witnesses (such as a forensic accountant).
D) It is a process wherein the judge and the attorneys question prospective jurors about their backgrounds and beliefs.

Question 22

Which of the following statements is true of the two means of settling disputes between parties?

A) Alternative dispute resolution is less expensive than litigation.
B) Litigation is faster than alternative dispute resolution.
C) Litigation allows for greater privacy than alternative dispute resolution.
D) Alternative dispute resolution allows for more transparency than litigation.

Question 23

Andre LeFevre,a testifying expert,failed to include changes to the case.These were not been previously presented in his report.He is expecting that this information will be offered at the trial.Which of the following rules of the Federal Rules of Civil Procedure has been violated by Andre?

A) Rule 26(b)(1)
B) Rule 26(b)(4)
C) Rule 26(e)(2)
D) Rule 26(a)(2)

Question 24

Which of the following best describes the meaning of burden of proof in a trial?

A) It is the obligation of the plaintiff or prosecution to prove liability or guilt.
B) It is the obligation of the jury to prove guilty and reach a verdict after a trial.
C) It is the obligation of the defendant to prove his or her innocence.
D) It is the obligation of the expert witness to prove his or her reliability in the court.

Question 25

Which of the following best describes a Daubert challenge?

A) It is a challenge faced by the judge when the jury is equally divided over a verdict.
B) It is a method used by the jury to evaluate the testimony given during a trial.
C) It is a special hearing conducted before the trial judge to determine the relevance and reliability of an expert's opinion.
D) It is a process by which the defendant challenges the prosecution's evidence.

Question 26

Which of the following scenarios indicates the application of Rule 702 of the Federal Rules of Evidence?

A) The plaintiff engages Ali, an attorney, to represent them in court.
B) The attorney calls upon Riya, a construction engineer, to provide evidence on the structural sufficiency of a building.
C) Pete, a store-owner, appears as a witness to give testimony on a robbery committed outside his store.
D) The court calls on Fiona, a forensic accountant, to give a statement on the accident that caused damage to her car.

Question 27

Which of the following is a difference between Rule 704 and Rule 705 of the Federal Rules of Evidence?

A) Rule 704 allows an expert to state an opinion without first testifying to the underlying facts or data, whereas Rule 705 allows an expert to testify to the underlying facts or data.
B) Rule 704 allows an expert to testify on areas that embrace an ultimate issue to be decided by the fact finder, whereas Rule 705 allows an expert witness a considerable degree of latitude regarding the facts or data upon which his or her opinions are based.
C) Rule 704 allows an expert to testify on areas that embrace an ultimate issue to be decided by the fact finder, whereas Rule 705 allows an expert to state an opinion without first testifying to the underlying facts or data.
D) Rule 704 allows an expert witness a considerable degree of latitude regarding the facts or data upon which his or her opinions are based, whereas Rule 705 allows an expert to testify on areas that embrace an ultimate issue to be decided by the fact finder.

Question 28

Which of the following is the purpose of the Federal Rules of Evidence?

A) to set standards for evidence to be admissible in court
B) to dictate the manner in which evidence is to be presented to the jury
C) to seek justice and truth in a fair and reasonable manner
D) to reduce the delay in trial due to unavailability of evidence

Question 29

Which of the following statements is true of rules of evidence?

A) The rules of evidence allow expert witnesses greater latitude than other witnesses to testify based on evidence that would not otherwise be admissible.
B) The rules of evidence allow other witnesses greater latitude than expert witnesses to testify based on evidence that would not otherwise be admissible.
C) The rules of evidence do not allow both expert witnesses and other witnesses to testify based on evidence that is not admissible.
D) The rules of evidence allow expert witnesses and other witnesses great latitude to testify based on evidence that would not otherwise be admissible.

Question 30

Which of the following does Rule 705 of the Federal Rules of Evidence allow?

A) It allows an expert to state an opinion without first testifying to the underlying facts or data, with the understanding that the opinion is subject to cross-examination.
B) It allows an expert to testify on areas that embrace an ultimate issue to be decided by the fact finder.
C) It allows an expert witness a considerable degree of latitude regarding the facts or data upon which his or her opinions are based.
D) It allows the testimony of an expert witness if it will assist the trier of fact (judge or jury) through the maze of "scientific, technical, or other specialized knowledge."

Question 31

Fingerprints and DNA samples are examples of

A) direct evidence.
B) documentary evidence.
C) character evidence.
D) circumstantial evidence.

Question 32

Which rule does the Daubert trilogy serve to interpret?

A) Rule 705
B) Rule 704
C) Rule 703
D) Rule 702

Question 33

Which of the following is a drawback of the Frye test?

A) It is not flexible enough to address new scientific issues where general acceptance has not yet been established.
B) It does not allow room for additional evidence to be considered when the initial evidence is insufficient.
C) It does not admit evidence given by an expert if the evidence is not based on a well-known method.
D) It is not extensive enough to address the latest developments in civil and criminal law.

Question 34

Which of the following is an example of hearsay evidence?

A) The attorney called on Anna to present her version of the events that took place during her class.
B) The police recorded a statement from Tina, which claims that she often heard the neighbors complain about the suspect's behavior.
C) The detective testified that the fingerprints lifted from the scene of crime had been identified as those of the suspect.
D) The prosecution presented a copy of the legal will of the deceased that had been altered by the defendant.

Question 35

Which of the following is true of a civil proceeding?

A) The pleading stage is followed by the trial stage.
B) The evidence is evaluated by the judge in order to reach a verdict.
C) Failure on the part of the defendant to file a timely response can result in a declaratory judgment.
D) The discovery process is governed by the Federal Rules of Civil Procedure in federal courts.

Question 36

Which of the following is a factor to be considered when evaluating expert testimony under the Daubert challenge?

A) how well accepted the methodology is within the professional community
B) what the known or potential success rate of the method is
C) whether the theory can be backed by evidence
D) whether the theory can be comprehended by the community

Question 37

Which of the following is a criterion under Rule 702 of the Federal Rules of Evidence for an expert testimony to be admissible?

A) The testimony can be accepted within the professional community.
B) The testimony is based on reliable assumptions.
C) The testimony is given in relation to scientific, technical, or other specialized knowledge.
D) The testimony is the product of reliable principles and methods.

Question 38

Which of the following statements is true of standards of proof?

A) Preponderance of evidence is a higher standard of proof than clear and convincing evidence.
B) In a civil case, the requisite standard is a preponderance of the evidence.
C) Clear and convincing evidence is evidence that is probably true.
D) Preponderance of evidence is evidence that can be proved beyond a reasonable doubt.

Question 39

Which of the following are the three cases that make up the Daubert trilogy?

A) Daubert v. Merrell Dow Pharmaceuticals, G.E. v. Joiner, and Upjohn Co. v. United States.
B) Daubert v. Merrell Dow Pharmaceuticals, Kumho Tire v. Carmichael, and Hickman v. Taylor.
C) Daubert v. Merrell Dow Pharmaceuticals, G.E. v. Joiner, and Kumho Tire v. Carmichael.
D) Daubert v. Merrell Dow Pharmaceuticals, Hickman v. Taylor, and Upjohn Co. v. United States.

Question 40

Which of the following is a legal principle that protects communications taking place within a protected relationship?

A) protected communication
B) privileged communication
C) guarded communication
D) secured communication

Question 41

Explain the structure of a criminal case.

Question 42

Rule 26(a)(2)of the Federal Rules of Civil Procedure requires the disclosure of all experts (such as forensic accountants)expected to testify at trial.The disclosure is generally accompanied by the expert's written report.List the elements that should be contained in the expert's written report.

Question 43

A requisite element for establishing privilege in an attorney-client privilege includes a communication that

A) is made to a person the client reasonably believed was an attorney.
B) relates to rendering personal services.
C) is irrelevant for the jury to reach a verdict.
D) contains detail that can harm the client.

Question 44

Write a brief note on standard of proof.

Question 45

Which of the following best defines the term attorney-client privilege?

A) It is the client's right to refuse to disclose and to prevent any other person from disclosing confidential communications between the client and the attorney.
B) It is the attorney's right to refuse to disclose and to prevent the testifying expert from disclosing confidential communications between the client and the attorney.
C) It is the client's obligation to disclose confidential communications between the client and the attorney.
D) It is the attorney's right to refuse to disclose and to prevent any other person from disclosing confidential communications between the attorney and the testifying expert.

Question 46

What are the two most common forms of alternate dispute resolution?

Question 47

What is relevant evidence as defined by FRE 401?

Question 48

What is the underlying theory of privileged communication?

A) The parties in a protected relationship are liable to disclose details of the communication taking place between them.
B) The society has a right to be aware of the communication within a protected relationship.
C) The privacy and confidentiality of a communication within a protected relationship has to be maintained.
D) In certain instances, society is best served by the suppression (protection from disclosure) of information.

Question 49

What was the result of amending FRCP 26(b)(4)to allow the extension of work product protection to most attorney-expert communications and to all draft expert reports?

A) It reduced the cost of litigation, but made the process more complex.
B) It increased the cost of litigation and made the process more complex.
C) It reduced the cost of litigation and made the process more efficient.
D) It increased the cost of litigation and simplified the process.

Question 50

Which of the following is a similarity between attorney-client privilege and work product doctrine?

A) Both allow lawyers to prepare for litigation but with the risk that their work will be revealed to court adversaries.
B) Both are intended to encourage individuals involved in legal disputes to be candid with their attorneys, thus enabling the attorneys to give sound legal advice.
C) Both can be extended to non-attorneys who assist attorneys in rendering legal advice or services.
D) Both provide protection from discovery of documents and other items prepared by an attorney in anticipation of a trial.