Forensic Accounting Practice Exam Questions With Correct Answers

Forensic Accounting Practice Exam
Questions With Correct Answers

As |consultants, |which |of |the |following |services |do |forensic |accountants |not |provide? |- |
CORRECT |ANSWER✔✔-Opining |on |the |fair |presentation |of |financial |statements



When |performing |dispute |resolution |services, |forensic |accountants |can |serve |as |_______ |or |
_______. |- |CORRECT |ANSWER✔✔-Mediators, |arbitrators



Which |of |the |following |is |a |forensic |accountant |not |allowed |to |do? |- |CORRECT |ANSWER✔✔-
Express |an |opinion |as |to |the |guilt |of |a |defendant.



Forensic |accounting |encompasses |all |aspects |of |fraud |examination. |- |CORRECT |ANSWER✔✔-
False



Having |knowledge |in |which |of |the |following |areas |is |important |for |a |forensic |accountant? |- |
CORRECT |ANSWER✔✔-All |of |the |above |



- |Information |technology, |

-Psychology, |

-Criminology



The |use |of |an |expert |witness |is |primarily |to |do |which |of |the |following? |- |CORRECT |
ANSWER✔✔-Assist |the |trier |of |fact

,According |to |professional |standards, |forensic |accountants |are |engaged |only |to |assist |lawyers |
as |they |prepare |for |litigation |and |to |testify |in |court. |- |CORRECT |ANSWER✔✔-False



To |work |effectively, |a |forensic |accountant |should |have |a |basic |understanding |of |all |of |the |
following |except |_______. |- |CORRECT |ANSWER✔✔-Enharmonic |equivalents



Whereas |traditional |accounting |has |many |sub-specialties |such |as |cost |accounting, |forensic |
accounting |has |relatively |few |sub-specialties. |- |CORRECT |ANSWER✔✔-False



Auditors |and |forensic |accountants |are |similar |in |that |they |both |_______. |- |CORRECT |
ANSWER✔✔-Are |allowed |to |formulate |opinions |to |assist |their |clients |and |others



Which |of |the |following |is |the |AICPA |body |designated |by |the |AICPA |Council |as |having |rule-
making |authority |in |the |area |of |forensic |and |valuation |services |- |CORRECT |ANSWER✔✔-
Forensic |and |Valuation |Services |Executive |Committee



The |Professional |Ethics |Executive |Committee |(PEEC) |is |a |senior |committee |of |the |AICPA |
charged |with |which |of |the |following |tasks? |- |CORRECT |ANSWER✔✔-All |of |the |answers |are |
correct |



- |Promulgating |new |interpretations |and |rulings, |

-Interpreting |and |enforcing |the |AICPA |Code |of |Professional |Conduct, |

-Investigating |potential |disciplinary |matters |that |involve |AICPA |members



A |threat |to |an |AICPA |member's |compliance |with |the |rules |of |the |AICPA |code |is |at |an |
acceptable |level |when |which |of |the |following |is |true? |- |CORRECT |ANSWER✔✔-A |reasonable |
and |informed |third |party |who |is |aware |of |the |relevant |information |concludes |that |the |threat |
would |not |adversely |affect |the |member's |compliance |with |the |rules

,Before |choosing |a |course |of |action |when |responding |to |an |ethical |conflict, |a |member |of |the |
AICPA |considers |doing |which |of |the |following? |- |CORRECT |ANSWER✔✔-All |of |the |answers |are |
correct |



- |Consult |with |appropriate |persons |within |the |member's |firm |or |organization, |

-Request |the |advice |of |other |individuals |in |resolving |the |ethical |conflict |or |obtain |advice |from |
an |appropriate |professional |body |(such |as |the |AICPA) |or |legal |counsel



If |an |AICPA |member |determines |that |he |or |she |faces |threats |to |objectivity |that |are |so |
significant |that |no |safeguards |could |eliminate |or |reduce |the |threat |to |an |acceptable |level, |the |
member |should |- |CORRECT |ANSWER✔✔-not |perform |the |service |OR |terminate |the |
relationship



AICPA |members |may |withhold |records |only |if |which |of |the |following |is |true? |- |CORRECT |
ANSWER✔✔-The |client |has |not |paid |for |the |engagement |and |the |records |are |the |work |
product |created |by |the |forensic |accountant



Chris |is |preparing |to |testify |as |an |expert |witness. |She |bases |her |testimony |on |prior |experience
|obtained |in |a |case |that |she |worked |on |two |years |ago |and |which |was |settled |out-of-court. |


What |is |your |advice |to |Chris? |- |CORRECT |ANSWER✔✔-Seek |consent |to |reveal |the |names |and |
information |from |the |parties |to |the |case |that |occurred |two |years |ago. |If |consent |cannot |be |
obtained, |do |not |use |the |experience |as |a |basis |for |testimony



If |investigative |services |are |performed |for |an |attest |client, |independence |may |be |impaired |
and, |if |it |is, |threats |to |independence |cannot |be |reduced |to |an |acceptable |level. |- |CORRECT |
ANSWER✔✔-False



Which |of |the |following |statements |is |not |true? |- |CORRECT |ANSWER✔✔-The |IESBA |code |
containes |more |detailed |guidance |than |the |AICPA |code

, Although |non-authoratative |guidance |issued |by |the |AICPA |does |not |represent |official |
pronouncements |of |the |AICPA, |members |- |CORRECT |ANSWER✔✔-need |not |comply |with |the |
guidance, |but |may |need |to |justify |departures, |particularly |if |the |facts |and |circumstances |of |
the |member's |engagement |are |nearly |similar |to |those |of |which |the |guidance |applies



Which |of |the |following |is |not |a |major |title |in |the |Federal |Rules |of |Civil |Procedure? |- |CORRECT |
ANSWER✔✔-Evidence



Under |the |Federal |Rules |of |Civil |Procedure, |a |civil |action |in |a |federal |court |begins |with |the |
plaintiff |filing |a |- |CORRECT |ANSWER✔✔-None |of |the |answers |are |correct |



- |Summons, |

-General |writ, |

-Prothonotary's |writ



Which |of |the |following |is |not |required |to |be |filed |by |a |defendant |in |a |civil |lawsuit? |- |CORRECT |
ANSWER✔✔-All |of |these |are |required |



- |An |admission |or |denial |of |every |element |of |the |plaintiff's |complaint,

- |An |answer |to |the |plaintiff's |complaint, |

-Any |affirmative |defenses



In |federal |lawsuits, |_______ |can |be |pursued |against |a |defendant. |- |CORRECT |ANSWER✔✔-
Unrelated |claims



In |federal |courts, |discovery |requests |may |be |directed |to |- |CORRECT |ANSWER✔✔-Parties |an |
nonparties |to |the |lawsuit