Forensic Accounting Exam 1 Chapters 1-
6 Questions and Answers Graded A+
As consultants, which of the following services do forensic accountants not
provide?
a. Advice on fraud risk mitigation.
b. Valuation of an estate.
c. Opining on the fair presentation of financial statements.
d. Financial impact of mergers and acquisitions. - Correct answer-Opining on the
fair presentation of financial statements.
When performing dispute resolution services, forensic accountants can serve as
______ or _______.
a. Facilitators; advocators.
b. Mediators; arbitrators.
c. Judge; jury.
d. None of the above. - Correct answer-Mediators; arbitrators
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,Internal fraud schemes typically involve weaknesses in ________.
a. Accounting.
b. Internal controls.
c. Leadership.
d. Assessment. - Correct answer-Internal controls
Having knowledge in which of the following areas is important for a forensic
accountant?
a. Information technology.
b. Psychology.
c. Criminology.
d. All of the above - Correct answer-All of the above
The use of expert witnesses is primarily to do which of the following?
a. Settle disputes out-of-court.
b. Assist the trier of fact.
c. Be an advocate for the defendant or plaintiff.
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,d. Fulfill the court's obligation of due diligence. - Correct answer-Assist the trier of
fact.
According to professional standards, forensic accountants are engaged only to
assist lawyers as they prepare for litigation.
a. True.
b. False. - Correct answer-False
To work effectively, a forensic accountant should have a basic understanding of all
of the following except:
a. Rules of evidence.
b. Law applicable to conspiracy crimes.
c. Court systems.
d. Enharmonic equivalents. - Correct answer-Enharmonic equivalents
Whereas traditional accounting has many subspecialties such as cost accounting,
forensic accounting has relatively few sub-specialties.
a. True.
b. False. - Correct answer-False
Auditors and forensic accountants are similar in that they both______.
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, a. Use the auditing standards issued by the AICPA to guide their work.
b. Are required to be independent of their clients.
c. Are allowed to formulate opinions to assist their clients and others.
d. Must be licensed to practice by the states in which they practice. - Correct
answer-Are allowed to formulate opinions to assist their clients and others.
What are the key elements of the definition of forensic accounting? - Correct
answer-Accounting, special skills, law, evidential matter, interpretation and
communication
What does the word forensic mean? - Correct answer-Pertaining to law
What are the two areas into which the practice of forensic accounting is typically
divided? - Correct answer-Litigation and investigative services
How does auditing differ from forensic accounting? - Correct answer-While both
examine evidence and form professional judgements on what they observe,
auditors express opinions on financial statements as a whole and forensic
accountants focus on one or more particular areas.
By whom and when was the term forensic accounting coined? - Correct answer-
Maurice Peloubet coined the term in 1946 by publishing the article "Forensic
Accounting - Its Place in Today's Economy"
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
6 Questions and Answers Graded A+
As consultants, which of the following services do forensic accountants not
provide?
a. Advice on fraud risk mitigation.
b. Valuation of an estate.
c. Opining on the fair presentation of financial statements.
d. Financial impact of mergers and acquisitions. - Correct answer-Opining on the
fair presentation of financial statements.
When performing dispute resolution services, forensic accountants can serve as
______ or _______.
a. Facilitators; advocators.
b. Mediators; arbitrators.
c. Judge; jury.
d. None of the above. - Correct answer-Mediators; arbitrators
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,Internal fraud schemes typically involve weaknesses in ________.
a. Accounting.
b. Internal controls.
c. Leadership.
d. Assessment. - Correct answer-Internal controls
Having knowledge in which of the following areas is important for a forensic
accountant?
a. Information technology.
b. Psychology.
c. Criminology.
d. All of the above - Correct answer-All of the above
The use of expert witnesses is primarily to do which of the following?
a. Settle disputes out-of-court.
b. Assist the trier of fact.
c. Be an advocate for the defendant or plaintiff.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,d. Fulfill the court's obligation of due diligence. - Correct answer-Assist the trier of
fact.
According to professional standards, forensic accountants are engaged only to
assist lawyers as they prepare for litigation.
a. True.
b. False. - Correct answer-False
To work effectively, a forensic accountant should have a basic understanding of all
of the following except:
a. Rules of evidence.
b. Law applicable to conspiracy crimes.
c. Court systems.
d. Enharmonic equivalents. - Correct answer-Enharmonic equivalents
Whereas traditional accounting has many subspecialties such as cost accounting,
forensic accounting has relatively few sub-specialties.
a. True.
b. False. - Correct answer-False
Auditors and forensic accountants are similar in that they both______.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, a. Use the auditing standards issued by the AICPA to guide their work.
b. Are required to be independent of their clients.
c. Are allowed to formulate opinions to assist their clients and others.
d. Must be licensed to practice by the states in which they practice. - Correct
answer-Are allowed to formulate opinions to assist their clients and others.
What are the key elements of the definition of forensic accounting? - Correct
answer-Accounting, special skills, law, evidential matter, interpretation and
communication
What does the word forensic mean? - Correct answer-Pertaining to law
What are the two areas into which the practice of forensic accounting is typically
divided? - Correct answer-Litigation and investigative services
How does auditing differ from forensic accounting? - Correct answer-While both
examine evidence and form professional judgements on what they observe,
auditors express opinions on financial statements as a whole and forensic
accountants focus on one or more particular areas.
By whom and when was the term forensic accounting coined? - Correct answer-
Maurice Peloubet coined the term in 1946 by publishing the article "Forensic
Accounting - Its Place in Today's Economy"
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
