Forensic Accounting Exam 1. Ch. 1-4 |Question and Answers| 100% Correc

Forensic Accounting Exam 1. Ch. 1-4 |Question and Answers| 100% Correct Time *Ans* Forensic accounting focuses on the past, although it may do so in order to look forward. What is forensic accounting's purpose? *Ans* Forensic accounting is performed for a specific legal forum or in anticipation of presentation before a legal forum. Peremptory *Ans* Forensic accountants may be employed in a wide variety of risk management engagements within business enterprise as a matter of right, without the necessity of allegations (e.g., proactive). Two Forensic Accounting Broad Areas *Ans* Investigative Accounting & Litigation Support Litigation services provided by F.A.s *Ans* Damages Antitrust analyses Valuation Accounting General Consulting Analyses Additional Procedures in forensic audit *Ans* Interviews and leveraging techniques Document inspection Public records search Legal knowledge regarding rules of evidence Top 10 Topics in Forensic ACC Curricula (1-5) *Ans* 1. Fundamentals of fraud 2. Financial statement fraud 3. Types of fraud. 4. Cooking the books and problems in accounting. 5. Elements of fraud: pressure, opportunity, and rationalization. Top 10 Topics in Forensic ACC Curricula (6-10) *Ans* 6. Anti fraud controls 7. Internal control evaluation 8. Theory and methodology of fraud examination. 9. Principles of ethics and corporate code of conduct. 10. Fraud detection and deterrence programs. Knowledge, skills, and abilities needed by forensic accountant *Ans* Law, legal system, courts, and courtroom procedure. Forensic Accounting knowledge base *Ans* Law. Criminology. Investigative auditing. Accounting. Transaction oddities in employee crimes that forensic accountants look for *Ans* Time (of day, week, month, year, or season). Frequency (too many, too few). Places (too far, too near, and too "far out"). Amount (too high, too low, too consistent, too alike, too difficult). Parties or personalities (related parties, strange and estranged relationships between parties, management performing clerical functions). White-collar crimes according to the FBI are categorized by *Ans* deceit, concealment, or violation of trust and are not dependent on the application or threat of physical force or violence. Forensic Accounting Definition *Ans* Action of identifying, settling, extracting, sorting, reporting, and verifying past financial data or other accounting activities