Forensic Accounting & Fraud Examination Midterm Updated Actual Questions And Correct Answers

FORENSIC ACCOUNTING & FRAUD EXAMINATION
MIDTERM UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS

Question:
1. Forensic Accounting
Answer:
The intersection of accounting and law.

Question:
2. Core Skills of a Forensic Accountant
Answer:
Technical, investigative, and communication skills.

Question:
3. Expert Witness Role
Answer:
To provide testimony and objective opinions to assist the trier of fact.

Question:
4. Economic Damages Calculation
Answer:
An example of forensic and valuation services.

Question:
5. Courtroom Testimony
Answer:
Generally adversarial in nature.

Question:
6. Fraud Risk Assessment Purpose
Answer:
To proactively identify and mitigate an organization's vulnerabilities to fraud.

Question:
7. Auditor Responsibility Limit
Answer:
Not responsible for detecting every immaterial misstatement.

Question:
8. Core Distinction of Fraud
Answer:
Commonly involves theft by deception.

,Question:
9. Four Elements of Fraud
Answer:
False statement, knowledge of falsity, reliance, and damages.

Question:
10. Larceny
Answer:
Taking property unlawfully.

Question:
11. Embezzlement
Answer:
Misappropriation of property entrusted to someone.

Question:
12. Breach of Fiduciary Relationship
Answer:
Generally considered a civil tort.

Question:
13. Criminal Burden of Proof
Answer:
Beyond a reasonable doubt.

Question:
14. Civil Burden of Proof
Answer:
Preponderance of the evidence.

Question:
15. Three Actions of a Fraud Scheme
Answer:
Act, concealment, and conversion.

Question:
16. Concealment
Answer:
Hiding evidence of a fraud.

Question:
17. Conversion
Answer:
Obtaining a personal benefit from the fraud.

, Question:
18. The Fraud Tree
Answer:
Misappropriation, corruption, and financial statement fraud.

Question:
19. Asset Misappropriation
Answer:
Theft or misuse of an organization's assets.

Question:
20. Corruption
Answer:
Wrongful misuse of influence, such as bribery.

Question:
21. Financial Statement Fraud
Answer:
Intentional material misrepresentation of financial information.

Question:
22. SOX Certifications
Answer:
Required to be signed by the CEO and CFO.

Question:
23. Pump-and-Dump Scheme
Answer:
Disseminating false information to influence securities prices.

Question:
24. Sales Needed to Recover Fraud Loss
Answer:
Fraud Loss divided by Profit Margin.

Question:
25. Most Common Fraud Detection Method
Answer:
Tips, most frequently from employees.

Question:
26. Collusion
Answer:
The Achilles heel of internal controls that makes fraud easier to conceal.