CFF PRACTICE EXAM QUESTIONS AND ANSWERS
Note on Flaschard Set - CORRECT ANSWER✅✅AICPA does not provide answer to these questions - the
answers received a 95% on their exam. Unsure which answers may be incorrect.
Which is not a role that forensic accountants serve in during litigation matters?
a. Litigation Consultant
b. Expert Witness
c. Bankruptcy Trustee
d. Member of Arbitration Panel - CORRECT ANSWER✅✅Member of Arbitration Panel
- Threat to independence
How does forensic accounting differ from auditing?
a. Auditors look only at the past, whereas forensic accountants look at the present and future.
b. Only auditors can express opinions.
c. Forensic accountants must follow the legal rules of procedure and evidence.
d. Staff auditors do not need to be CPAs, whereas all forensic accountants must be CPAs. - CORRECT
ANSWER✅✅c. Forensic accountants must follow the legal rules of procedure and evidence.
Which is not a typical forensic accounting service?
a. Providing an expert opinion on the presentation of a company's financial statements.
b. Providing a valuation of a business in a divorce case.
c. Investigating fraudulent financial transactions posted in the books.
d. Searching for hidden assets in a bankruptcy case. - CORRECT ANSWER✅✅a. Providing an expert
opinion on the presentation of a company's financial statements.
Which is not something forensic accountants should have knowledge of?
a. The federal rules of evidence.
b. The federal rules for taking suspects into custody.
,c. The federal rules of civil procedure.
d. State and local court procedures and rules. - CORRECT ANSWER✅✅b. The federal rules for taking
suspects into custody.
Which is not required to establish authoritative guidance for the AICPA?
a. Deliberation in meetings open to the public.
b. Publishing exposure drafts of proposed statements.
c. A formal vote by the appropriate AICPA body.
d. A formal vote by the AICPA membership. - CORRECT ANSWER✅✅d. A formal vote by the AICPA
membership.
- Appropriate body, not membership. They'd never open it up to thousands.
Which is one of the four main sections of the AICPA Code of Professional Conduct?
a. Preface.
b. Rules for auditors.
c. General standards.
d. Reporting standards. - CORRECT ANSWER✅✅a. Preface.
Four sections: Preface, Members in Public Practice, Membbers in Business, Other Members
Which is not likely to pertain to a forensic accountant conducting a fraud investigation?
a. Integrity and objectivity.
b. Compliance with standards.
c. Independence.
d. Acts discreditable. - CORRECT ANSWER✅✅c. Independence.
- ChatGPT says independence matters less as they don't need to maintain the same independence as an
auditor
, What is the first thing a forensic accountant should do when contacted by an attorney or a client about
a forensic accounting engagement?
a. Obtain a signed engagement letter.
b. Perform a conflict of interest check.
c. Get a retainer from the client or attorney.
d. Get court approval to serve as an expert. - CORRECT ANSWER✅✅b. Perform a conflict of interest
check.
Which is not one of the disciplinary actions available to the PEEC?
a. Offer a public settlement to the member.
b. Revoke the member's CPA license.
c. Issue a confidential letter of corrective action.
d. Present the case before the Joint Trial Board. - CORRECT ANSWER✅✅b. Revoke the member's CPA
license.
Joint Trial Board revokes license
SSFS 1 does not apply to
a. Litigation engagements.
b. Transaction services engagements.
c. Investigation engagements.
d. Valuation engagements. - CORRECT ANSWER✅✅b. Transaction services engagements.
Which is not considered non-authoritative guidance in a forensic accounting engagement? *
a. Practice Aids
b. Special Reports
c. Case Law
d. White Papers - CORRECT ANSWER✅✅c. Case Law
Which is not a step in a federal civil proceeding?
Note on Flaschard Set - CORRECT ANSWER✅✅AICPA does not provide answer to these questions - the
answers received a 95% on their exam. Unsure which answers may be incorrect.
Which is not a role that forensic accountants serve in during litigation matters?
a. Litigation Consultant
b. Expert Witness
c. Bankruptcy Trustee
d. Member of Arbitration Panel - CORRECT ANSWER✅✅Member of Arbitration Panel
- Threat to independence
How does forensic accounting differ from auditing?
a. Auditors look only at the past, whereas forensic accountants look at the present and future.
b. Only auditors can express opinions.
c. Forensic accountants must follow the legal rules of procedure and evidence.
d. Staff auditors do not need to be CPAs, whereas all forensic accountants must be CPAs. - CORRECT
ANSWER✅✅c. Forensic accountants must follow the legal rules of procedure and evidence.
Which is not a typical forensic accounting service?
a. Providing an expert opinion on the presentation of a company's financial statements.
b. Providing a valuation of a business in a divorce case.
c. Investigating fraudulent financial transactions posted in the books.
d. Searching for hidden assets in a bankruptcy case. - CORRECT ANSWER✅✅a. Providing an expert
opinion on the presentation of a company's financial statements.
Which is not something forensic accountants should have knowledge of?
a. The federal rules of evidence.
b. The federal rules for taking suspects into custody.
,c. The federal rules of civil procedure.
d. State and local court procedures and rules. - CORRECT ANSWER✅✅b. The federal rules for taking
suspects into custody.
Which is not required to establish authoritative guidance for the AICPA?
a. Deliberation in meetings open to the public.
b. Publishing exposure drafts of proposed statements.
c. A formal vote by the appropriate AICPA body.
d. A formal vote by the AICPA membership. - CORRECT ANSWER✅✅d. A formal vote by the AICPA
membership.
- Appropriate body, not membership. They'd never open it up to thousands.
Which is one of the four main sections of the AICPA Code of Professional Conduct?
a. Preface.
b. Rules for auditors.
c. General standards.
d. Reporting standards. - CORRECT ANSWER✅✅a. Preface.
Four sections: Preface, Members in Public Practice, Membbers in Business, Other Members
Which is not likely to pertain to a forensic accountant conducting a fraud investigation?
a. Integrity and objectivity.
b. Compliance with standards.
c. Independence.
d. Acts discreditable. - CORRECT ANSWER✅✅c. Independence.
- ChatGPT says independence matters less as they don't need to maintain the same independence as an
auditor
, What is the first thing a forensic accountant should do when contacted by an attorney or a client about
a forensic accounting engagement?
a. Obtain a signed engagement letter.
b. Perform a conflict of interest check.
c. Get a retainer from the client or attorney.
d. Get court approval to serve as an expert. - CORRECT ANSWER✅✅b. Perform a conflict of interest
check.
Which is not one of the disciplinary actions available to the PEEC?
a. Offer a public settlement to the member.
b. Revoke the member's CPA license.
c. Issue a confidential letter of corrective action.
d. Present the case before the Joint Trial Board. - CORRECT ANSWER✅✅b. Revoke the member's CPA
license.
Joint Trial Board revokes license
SSFS 1 does not apply to
a. Litigation engagements.
b. Transaction services engagements.
c. Investigation engagements.
d. Valuation engagements. - CORRECT ANSWER✅✅b. Transaction services engagements.
Which is not considered non-authoritative guidance in a forensic accounting engagement? *
a. Practice Aids
b. Special Reports
c. Case Law
d. White Papers - CORRECT ANSWER✅✅c. Case Law
Which is not a step in a federal civil proceeding?
