FORENSIC AND INVESTIGATIVE
ACCOUNTING 9TH EDITION CRUMBLEY
TEST BANK EXAM PREP QUESTIONS AND
ANSWERS 2026 COMPLETE SOLVED
QUESTIONS
⩥ What is fraud examination? Answer: The process focused specifically
on investigating intentional deception for gain.
⩥ How does forensic accounting differ from fraud examination?
Answer: Forensic accounting covers a broader range of financial
investigations beyond just fraud.
⩥ What is the definition of fraud? Answer: Any misleading or
intentional action aimed at gaining an unfair advantage.
⩥ What are some examples of fraud? Answer: Making misleading
statements or omitting relevant information.
⩥ What are some areas where forensic accounting is applied? Answer:
Business acquisitions, divorce settlements, property damage
assessments, dispute resolution, and lost profits calculation.
,⩥ What does the term 'forensic' refer to in forensic accounting? Answer:
It pertains to courts of law or legal proceedings.
⩥ What does the term 'accounting' encompass? Answer: The process of
recording, classifying, and summarizing economic events to provide
financial information for decision-making.
⩥ What is the combined meaning of forensic accounting? Answer:
Using accounting knowledge and information from other sources to
objectively determine facts for legal contexts.
⩥ What are the key features of forensic accounting? Answer: Objectivity
and legal admissibility of financial findings.
⩥ What is the purpose of traditional accounting? Answer: To
communicate the results of transactions and support decision-making.
⩥ What are the main areas of traditional accounting? Answer: Financial
accounting, managerial accounting, information systems, tax accounting,
consulting, and auditing.
⩥ What is the primary focus of auditing? Answer: To verify the accuracy
and fairness of financial statements.
, ⩥ What are the two main categories of forensic accounting according to
AICPA? Answer: Investigative services and litigation services.
⩥ What is the focus of investigative services in forensic accounting?
Answer: Fraud detection, prevention, and control.
⩥ What does litigation services in forensic accounting involve? Answer:
Accountants acting as experts or consultants in legal matters, including
expert testimony.
⩥ What is the core difference between traditional accounting and
forensic accounting? Answer: Traditional accounting records and reports
transactions, while forensic accounting investigates and analyzes data
for legal purposes.
⩥ Who are the typical users of forensic accounting? Answer: Courts,
lawyers, investigators, and law enforcement.
⩥ What type of questions does forensic accounting seek to answer?
Answer: 'Why and how did it happen?' and 'Who is responsible?'
⩥ What is the outcome of traditional accounting? Answer: Financial
statements, reports, and forecasts.
ACCOUNTING 9TH EDITION CRUMBLEY
TEST BANK EXAM PREP QUESTIONS AND
ANSWERS 2026 COMPLETE SOLVED
QUESTIONS
⩥ What is fraud examination? Answer: The process focused specifically
on investigating intentional deception for gain.
⩥ How does forensic accounting differ from fraud examination?
Answer: Forensic accounting covers a broader range of financial
investigations beyond just fraud.
⩥ What is the definition of fraud? Answer: Any misleading or
intentional action aimed at gaining an unfair advantage.
⩥ What are some examples of fraud? Answer: Making misleading
statements or omitting relevant information.
⩥ What are some areas where forensic accounting is applied? Answer:
Business acquisitions, divorce settlements, property damage
assessments, dispute resolution, and lost profits calculation.
,⩥ What does the term 'forensic' refer to in forensic accounting? Answer:
It pertains to courts of law or legal proceedings.
⩥ What does the term 'accounting' encompass? Answer: The process of
recording, classifying, and summarizing economic events to provide
financial information for decision-making.
⩥ What is the combined meaning of forensic accounting? Answer:
Using accounting knowledge and information from other sources to
objectively determine facts for legal contexts.
⩥ What are the key features of forensic accounting? Answer: Objectivity
and legal admissibility of financial findings.
⩥ What is the purpose of traditional accounting? Answer: To
communicate the results of transactions and support decision-making.
⩥ What are the main areas of traditional accounting? Answer: Financial
accounting, managerial accounting, information systems, tax accounting,
consulting, and auditing.
⩥ What is the primary focus of auditing? Answer: To verify the accuracy
and fairness of financial statements.
, ⩥ What are the two main categories of forensic accounting according to
AICPA? Answer: Investigative services and litigation services.
⩥ What is the focus of investigative services in forensic accounting?
Answer: Fraud detection, prevention, and control.
⩥ What does litigation services in forensic accounting involve? Answer:
Accountants acting as experts or consultants in legal matters, including
expert testimony.
⩥ What is the core difference between traditional accounting and
forensic accounting? Answer: Traditional accounting records and reports
transactions, while forensic accounting investigates and analyzes data
for legal purposes.
⩥ Who are the typical users of forensic accounting? Answer: Courts,
lawyers, investigators, and law enforcement.
⩥ What type of questions does forensic accounting seek to answer?
Answer: 'Why and how did it happen?' and 'Who is responsible?'
⩥ What is the outcome of traditional accounting? Answer: Financial
statements, reports, and forecasts.
