Chapter 1: The Forensic Accounting Profession
- The use of a forensic accountant as an expert witness is primarily to do which of the following?
- Settle disputes out-of-court
- Assist the trier of fact
- Be an advocate for the plaintiff or defendant
- Fulfill the court’s obligation of due diligence
- As consultants, which of the following services do forensic accounts not provide?
- Advice on fraud risk mitigation
- Valuation of an estate
- Opining on the fair presentation of financial statements
- Financial impact of mergers and acquisitions
- Having knowledge in which of the following areas is important for a forensic accountant?
- Information technology
- Psychology
- Criminology
- All of the above
- If a forensic accountant advertises his or her services, under AICPA Professional Standard which of the following may be stated in the ad?
- We guarantee favorable results
- We only get paid if we win
- We are members of the AICPA
- We know all the judges
- Forensic accountants can serve in which of the following roles?
- Consultants to the court
- Expert witnesses for plaintiffs
- Consultants for attorneys
- All of the above
- How does forensic accounting differ from auditing?
- Auditors look only at the past, whereas forensic accountants look at the present and future.
- Only auditors can express opinions.
- Forensic accountants must follow the legal rules of procedure and evidence.
- Staff auditors do not need to be CPAs, whereas all forensic accountants must be CPAs.
- Which of the following is not a typical forensic accounting service?
- Providing an expert opinion on the presentation of a company’s financial statements.
- Providing a valuation of a business in a divorce case.
- Investigation fraudulent financial transactions posted in the books.
- Searching for hidden assets in a bankruptcy case.
- Forensic accountants should have knowledge of all of the following except?
- The federal rules of evidence.
- The federal rules for taking suspects into custody.
- The federal rules of civil procedure.
- State and local court procedures and rules.
- A forensic accountant would not normally be engaged to do which of the following?
- Assist a company in writing internal controls to prevent and detect fraud.
- Provide the value of a business for an estate tax return.
- Serve as a fact witness at a trial.
- Investigate fraud in a government or not-for-profit entity.
- Which of the following is not considered a forensic accounting credential?
- Certified Valuation Analyst (CVA)
- Certified Fraud Examiner (CFE)
- Master Analyst in Financial Forensics (MAFF)