Forensic Accounting Exam 1 Questions
and Answers Graded A+
Maurice Peloubet - Correct answer-Father of the term Forensic Accounting in 1946
James McCleland - Correct answer-Given credit for being the first Forensic
Accountant
Gordon Brown - Correct answer-said "what the use of fingerprints was to the 19th
century, and DNA to the 20th century, forensic accounting will be to the 21st
century
Authur Anderson - Correct answer-the external auditor during the WorldCom fraud
Frank Wilson - Correct answer-found the smoking gun to help catch Al Capone
What are the 6 areas of litigation services that an AICPA committee suggested in
1986? - Correct answer-Damages, Valuation, Antitrust Analyses, General
Consulting, Accounting, Analyses
Which is not one of the six areas of litigation services that an AICPA committee
suggested in 1986? - Correct answer-Attestation
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,Wayne Bremser defined the modern role of forensic accounting to include four
elements. Which is not one of the four? - Correct answer-Appellate Support
Wayne Bremser defined the modern role of forensic accounting to include four
elements. What are they? - Correct answer-Trail Support, Pretrial Support, Expert
Witnessing, Settlement Support
In North America, forensic accounting can be traced as far back as 1817 to a
______________ court decision? What was it? - Correct answer-Canadian; Meyer
verse Sefton
Who was the auditor for Sunbeam, Waste Management, Baptist Foundation of
Arizona, and Global Crossing? - Correct answer-Arthur Anderson
Who began to emphasize fraud detection in the FBI? - Correct answer-J. Edgar
Hoover
The other name for the Committee of Sponsoring Organizations (COSO) is the
________________ Commission? - Correct answer-Treadway
"What the use of _____________________ was to the 19th century and
_______________ was to the 20th century, forensic accounting will be to the 21st
century" - Correct answer-fingerprints; DNA analysis
The three certain things in life: - Correct answer-death, taxes, and fraud
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,Preemptory refers to __________________? - Correct answer-the fact that forensic
accountants may take a preventive approach as a result of normal operations
When comparing a forensic audit with a financial audit, which item would indicate
a financial audit? - Correct answer-Sampling process
Satyam means ___________? - Correct answer-truth
The two main provisions of the FCPA are ___________? - Correct answer-anti
bribery provision (Department of Justice) and accounting provision (SEC)
Sir Allen Standford's ponzi scheme stole more money than Bernie Madoff's? -
Correct answer-False
The value examiner is published by: - Correct answer-NACVA
PCAOB is one of the sponsors of the Committee of Sponsoring Organizations
(COSO)? - Correct answer-False
Who are the sponsors for the COSO? - Correct answer-American Accounting
Association, American Institute of CPA, Finance Executives International, Institute
of MGMT Accounting, Institute of Internal Auditors
The external auditor for WorldCom when it went bankrupt was ______? - Correct
answer-Arthur Anderson
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, The Panel on Audit Effectiveness was authorized by PCAOB? - Correct answer-
False; POB
Which chairmen of the House Ways & Means Committee served time in prison and
why? - Correct answer-Dan Rostenkowski bc he embezzled public money in a
cash-for-stamp scheme
Forensic Accounting is considered to be principles -based? - Correct answer-True
Sam Antar - Correct answer-"My goal was to have the auditors leave 80% of their
male auditors as part of his distraction strategy...It's like David Copperfiled; it's an
illusion"
Forensic Accountant - Correct answer-may take on fraud auditing engagements and
may be a fraud auditor, but he will also use other accounting, consulting, and legal
skills in broader engagements. In addition, they will need a working knowledge of
the legal system and excellent communication skills for court
Forensic Accounting - Correct answer-Is the action of identifying, recording,
settling, extracting, sorting, reporting, and verifying past financial data or other
accounting actives for settling current or prospective legal disputes or using past
financial data for projecting future data to settle legal disputes
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
and Answers Graded A+
Maurice Peloubet - Correct answer-Father of the term Forensic Accounting in 1946
James McCleland - Correct answer-Given credit for being the first Forensic
Accountant
Gordon Brown - Correct answer-said "what the use of fingerprints was to the 19th
century, and DNA to the 20th century, forensic accounting will be to the 21st
century
Authur Anderson - Correct answer-the external auditor during the WorldCom fraud
Frank Wilson - Correct answer-found the smoking gun to help catch Al Capone
What are the 6 areas of litigation services that an AICPA committee suggested in
1986? - Correct answer-Damages, Valuation, Antitrust Analyses, General
Consulting, Accounting, Analyses
Which is not one of the six areas of litigation services that an AICPA committee
suggested in 1986? - Correct answer-Attestation
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,Wayne Bremser defined the modern role of forensic accounting to include four
elements. Which is not one of the four? - Correct answer-Appellate Support
Wayne Bremser defined the modern role of forensic accounting to include four
elements. What are they? - Correct answer-Trail Support, Pretrial Support, Expert
Witnessing, Settlement Support
In North America, forensic accounting can be traced as far back as 1817 to a
______________ court decision? What was it? - Correct answer-Canadian; Meyer
verse Sefton
Who was the auditor for Sunbeam, Waste Management, Baptist Foundation of
Arizona, and Global Crossing? - Correct answer-Arthur Anderson
Who began to emphasize fraud detection in the FBI? - Correct answer-J. Edgar
Hoover
The other name for the Committee of Sponsoring Organizations (COSO) is the
________________ Commission? - Correct answer-Treadway
"What the use of _____________________ was to the 19th century and
_______________ was to the 20th century, forensic accounting will be to the 21st
century" - Correct answer-fingerprints; DNA analysis
The three certain things in life: - Correct answer-death, taxes, and fraud
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,Preemptory refers to __________________? - Correct answer-the fact that forensic
accountants may take a preventive approach as a result of normal operations
When comparing a forensic audit with a financial audit, which item would indicate
a financial audit? - Correct answer-Sampling process
Satyam means ___________? - Correct answer-truth
The two main provisions of the FCPA are ___________? - Correct answer-anti
bribery provision (Department of Justice) and accounting provision (SEC)
Sir Allen Standford's ponzi scheme stole more money than Bernie Madoff's? -
Correct answer-False
The value examiner is published by: - Correct answer-NACVA
PCAOB is one of the sponsors of the Committee of Sponsoring Organizations
(COSO)? - Correct answer-False
Who are the sponsors for the COSO? - Correct answer-American Accounting
Association, American Institute of CPA, Finance Executives International, Institute
of MGMT Accounting, Institute of Internal Auditors
The external auditor for WorldCom when it went bankrupt was ______? - Correct
answer-Arthur Anderson
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, The Panel on Audit Effectiveness was authorized by PCAOB? - Correct answer-
False; POB
Which chairmen of the House Ways & Means Committee served time in prison and
why? - Correct answer-Dan Rostenkowski bc he embezzled public money in a
cash-for-stamp scheme
Forensic Accounting is considered to be principles -based? - Correct answer-True
Sam Antar - Correct answer-"My goal was to have the auditors leave 80% of their
male auditors as part of his distraction strategy...It's like David Copperfiled; it's an
illusion"
Forensic Accountant - Correct answer-may take on fraud auditing engagements and
may be a fraud auditor, but he will also use other accounting, consulting, and legal
skills in broader engagements. In addition, they will need a working knowledge of
the legal system and excellent communication skills for court
Forensic Accounting - Correct answer-Is the action of identifying, recording,
settling, extracting, sorting, reporting, and verifying past financial data or other
accounting actives for settling current or prospective legal disputes or using past
financial data for projecting future data to settle legal disputes
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
