Forensic Accounting Exam 1 Questions with
Correct Answers | Latest Update
Save
Terms in this set (37)
A forensic accountant may take on fraud auditing
engagements and may be a fraud auditor, but he or
she will also use other accounting, consulting, and
legal skills in broader engagements. In addition to
Forensic Accountant accounting skills, he or she will need a working
knowledge of the legal system and excellent
communication skills to carry out expert testimony in
the courtroom and to aid in other litigation support
engagements
An accountant especially skilled in auditing who is
Fraud Auditor generally engaged in auditing with a view toward
fraud discovery, documentation, and prevention
the action of identifying, recording, settling,
extracting, sorting, reporting, and verifying past
financial data or other accounting activities for settling
Forensic Accounting
current or prospective legal disputes or using such
past financial data for projecting future financial data
to settle legal disputes
Two Types of Forensic IAS (investigative advisory services) and DAS (Dispute
Accounting Services Advisory Services)
, requires brainstorm session and clarifies auditor's
responsibility in regards to fraud. Attempts to minimize
SAS 99 the expectations gap; increases Auditor's
responsibility as it relates to fraud (superseded SAS
82)
■ Law
■ Accounting
Forensic Accountants
■ Investigative auditing
Knowledge Base
■ Criminology
(& Technology)
Two Certifying Boards and ACFE (CFE); AICPA (CFF)
Licenses
● Manipulation
Three M's of Financial
● Misrepresentation
Reporting Fraud
● Misapplication
○ Falsification or alteration of accounting records or
Manipulation supporting documents from which financial
statements are prepared
○ Intentional omission of events, transactions, or other
Misrepresentation
significant information
○ Misapplication of accounting principles relating to
Misapplication amounts, classifications, manner of presentation, or
disclosure
i. Cookie Jar Reserves
ii. Lapping/Kiting
iii. Channel Stuffing
Types of Fraud iv. Skimming
v. Ghost Employees
vi. Bill and Hold
vii. Ponzi Scheme
Form of earnings management; use estimates to make
Cookie Jar Reserves
numbers look better/worse at times
Correct Answers | Latest Update
Save
Terms in this set (37)
A forensic accountant may take on fraud auditing
engagements and may be a fraud auditor, but he or
she will also use other accounting, consulting, and
legal skills in broader engagements. In addition to
Forensic Accountant accounting skills, he or she will need a working
knowledge of the legal system and excellent
communication skills to carry out expert testimony in
the courtroom and to aid in other litigation support
engagements
An accountant especially skilled in auditing who is
Fraud Auditor generally engaged in auditing with a view toward
fraud discovery, documentation, and prevention
the action of identifying, recording, settling,
extracting, sorting, reporting, and verifying past
financial data or other accounting activities for settling
Forensic Accounting
current or prospective legal disputes or using such
past financial data for projecting future financial data
to settle legal disputes
Two Types of Forensic IAS (investigative advisory services) and DAS (Dispute
Accounting Services Advisory Services)
, requires brainstorm session and clarifies auditor's
responsibility in regards to fraud. Attempts to minimize
SAS 99 the expectations gap; increases Auditor's
responsibility as it relates to fraud (superseded SAS
82)
■ Law
■ Accounting
Forensic Accountants
■ Investigative auditing
Knowledge Base
■ Criminology
(& Technology)
Two Certifying Boards and ACFE (CFE); AICPA (CFF)
Licenses
● Manipulation
Three M's of Financial
● Misrepresentation
Reporting Fraud
● Misapplication
○ Falsification or alteration of accounting records or
Manipulation supporting documents from which financial
statements are prepared
○ Intentional omission of events, transactions, or other
Misrepresentation
significant information
○ Misapplication of accounting principles relating to
Misapplication amounts, classifications, manner of presentation, or
disclosure
i. Cookie Jar Reserves
ii. Lapping/Kiting
iii. Channel Stuffing
Types of Fraud iv. Skimming
v. Ghost Employees
vi. Bill and Hold
vii. Ponzi Scheme
Form of earnings management; use estimates to make
Cookie Jar Reserves
numbers look better/worse at times
