Forensic Accounting, Exam Elaboration 2024, Full Q&A with verified Answers.

Forensic Accounting, Exam Elaboration 2024, Full Q&A with verified Answers. Forensic accounting - Correct Answer: is the application of investigative and analytical skills for the purpose of resolving financial issues in a manner that meets standards required by courts of law. Fraud - Correct Answer: is the result of misleading, intentional actions or inaction to gain an advantage Using deception for financial or personal gain. forensic accounting into two categories: - Correct Answer: 1. Investigative services that may or may not lead to courtroom testimony. (fraud examiner or fraud auditor) 2. Litigation services that recognize the role of the accountant as an expert, consultant, or other role. (TESTIMONY GIVEN) Examples: Expert witness testimony Damage quantification Asset tracing Litigation support Forensic accountants - Correct Answer: apply special skills in accounting, auditing, finance, quantitative methods, certain areas of the law, research, and investigative skills to collect, analyze, and evaluate evidential matter and to interpret and communicate findings 1. To what does the word forensic pertain? a. Financial audits when fraud is involved. b. A particular type of accounting. c. Matters relating to law and courts of law. d. Prosecutorial investigations. - Correct Answer: c 2. For an act to be considered fraud, which of the following is required? a. Large loss. b. Legal entity (e.g., a corporation, partnership, or trust). c. Intentional harm. d. Intentional action or inaction. - Correct Answer: d 3. Which of the following is outside the area of forensic accounting? a. Corporate acquisitions. b. Divorce. c. Contract disputes. d. None of the above. - Correct Answer: d 4. Which area of accounting is most closely associated with forensic accounting? a. Information systems. b. Managerial accounting. c. Consulting. d. Auditing. - Correct Answer: D