Forensic Accounting Exam 1 Actual
Questions and CORRECT Answers
Forensic accounting and fraud auditing are synonymous - CORRECT ANSWER False
The scribes of ancient Egypt were the forerunners of today's accountants - CORRECT
ANSWER True
Over time the definition of forensic accounting has changed from being an investigative
accountant to litigation support (testifying in court) - CORRECT ANSWER Fales
Accountants as expert witnesses began in criminal and arbitration cases - CORRECT
ANSWER False
Arbitration was the driving force for expert witnessing in England in the early years -
CORRECT ANSWER True
Arthur Andersen created a CPA firm that eventually disappeared - CORRECT
ANSWER True
G. Jack Bologna was the author of the first forensic accounting book - CORRECT
ANSWER False
An AICPA committee in 1986 broke forensic accounting into two broad areas: investigative
accounting and litigation support - CORRECT ANSWER True
Consulting standards may apply to a forensic accountant - CORRECT ANSWER True
A forensic audit is generally a sampling activity - CORRECT ANSWER False
, The smoking gun to convict Al Capone was a cash receipts journal with Capone's name on it
- CORRECT ANSWER False
Plagiarism is considered to be fraud - CORRECT ANSWER True
A forensic accountant uses interviews and leveraging techniques designed to elicit sufficient
information to prove or disapprove a hypothesis - CORRECT ANSWER True
A forensic accountant does not search public records - CORRECT ANSWER False
Satyam in India means truth - CORRECT ANSWER True
Expert witnessing can be traced to a court decision in 1817 in what country? - CORRECT
ANSWER Canada
Who was probably the first modern forensic accountant? - CORRECT
ANSWER James McClelland
Which accounting firm audited of these companies: Sunbeam, Waste Management, Global
Crossing, and Baptist Foundation of Arizona? - CORRECT ANSWER Arthur
Andersen
Which is not one of the six areas of litigation services that the AICPA committee suggested in
1986? - CORRECT ANSWER Damages, valuation, accounting, analyses
Peremptory refers to: - CORRECT ANSWER Be there first
What is not an indirect IRS audit technique? - CORRECT ANSWER Bank deposit
method
Questions and CORRECT Answers
Forensic accounting and fraud auditing are synonymous - CORRECT ANSWER False
The scribes of ancient Egypt were the forerunners of today's accountants - CORRECT
ANSWER True
Over time the definition of forensic accounting has changed from being an investigative
accountant to litigation support (testifying in court) - CORRECT ANSWER Fales
Accountants as expert witnesses began in criminal and arbitration cases - CORRECT
ANSWER False
Arbitration was the driving force for expert witnessing in England in the early years -
CORRECT ANSWER True
Arthur Andersen created a CPA firm that eventually disappeared - CORRECT
ANSWER True
G. Jack Bologna was the author of the first forensic accounting book - CORRECT
ANSWER False
An AICPA committee in 1986 broke forensic accounting into two broad areas: investigative
accounting and litigation support - CORRECT ANSWER True
Consulting standards may apply to a forensic accountant - CORRECT ANSWER True
A forensic audit is generally a sampling activity - CORRECT ANSWER False
, The smoking gun to convict Al Capone was a cash receipts journal with Capone's name on it
- CORRECT ANSWER False
Plagiarism is considered to be fraud - CORRECT ANSWER True
A forensic accountant uses interviews and leveraging techniques designed to elicit sufficient
information to prove or disapprove a hypothesis - CORRECT ANSWER True
A forensic accountant does not search public records - CORRECT ANSWER False
Satyam in India means truth - CORRECT ANSWER True
Expert witnessing can be traced to a court decision in 1817 in what country? - CORRECT
ANSWER Canada
Who was probably the first modern forensic accountant? - CORRECT
ANSWER James McClelland
Which accounting firm audited of these companies: Sunbeam, Waste Management, Global
Crossing, and Baptist Foundation of Arizona? - CORRECT ANSWER Arthur
Andersen
Which is not one of the six areas of litigation services that the AICPA committee suggested in
1986? - CORRECT ANSWER Damages, valuation, accounting, analyses
Peremptory refers to: - CORRECT ANSWER Be there first
What is not an indirect IRS audit technique? - CORRECT ANSWER Bank deposit
method
