Forensic Accounting Exam 1 Actual
Questions and CORRECT Answers
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
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
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
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
Fraud Auditor - CORRECT ANSWER an accountant especially skilled in auditing who
is generally engaged in auditing with a view toward fraud discovery, documentation, and
prevention
Forensic Accounting verse time? - CORRECT ANSWER Focuses on the past, although
it may do so to look forward
FA verse purpose? - CORRECT ANSWER it is performed for a specific legal forum or
in anticipation of presentation before a legal forum
FA verse Peremptory? - CORRECT ANSWER Forensic accountants may be employed
in a wide variety of risk management engagements within business enterprise as a matter of
right, without necessity of allegations
What happened in 1921? - CORRECT ANSWER All states passed laws for CPA exams
First state to pass CPA law? - CORRECT ANSWER New York
What happened before financials were audited by outside experts? - CORRECT
ANSWER The courts handled challenges with testimonies
When did arbitration, fraud, investigation, and expert witnesses begin appearing? -
CORRECT ANSWER 1800s
What did the Journal of Accountancy propose? - CORRECT ANSWER that
educational institutions should start including in their curricula the study of the law of
evidence
Questions and CORRECT Answers
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
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
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
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
Fraud Auditor - CORRECT ANSWER an accountant especially skilled in auditing who
is generally engaged in auditing with a view toward fraud discovery, documentation, and
prevention
Forensic Accounting verse time? - CORRECT ANSWER Focuses on the past, although
it may do so to look forward
FA verse purpose? - CORRECT ANSWER it is performed for a specific legal forum or
in anticipation of presentation before a legal forum
FA verse Peremptory? - CORRECT ANSWER Forensic accountants may be employed
in a wide variety of risk management engagements within business enterprise as a matter of
right, without necessity of allegations
What happened in 1921? - CORRECT ANSWER All states passed laws for CPA exams
First state to pass CPA law? - CORRECT ANSWER New York
What happened before financials were audited by outside experts? - CORRECT
ANSWER The courts handled challenges with testimonies
When did arbitration, fraud, investigation, and expert witnesses begin appearing? -
CORRECT ANSWER 1800s
What did the Journal of Accountancy propose? - CORRECT ANSWER that
educational institutions should start including in their curricula the study of the law of
evidence
