WGU D551 PRE-ASSESSMENT: FRAUD AND FORENSIC ACCOUNTING
(JAC2) (PJAC) ACTUAL EXAM QUESTIONS AND ANSWERS | LATEST
2026/2027 UPDATE (100% CORRECT) GRADED A+ | GUARANTEED
PASS.
An AICPA committee in 1986 broke forensic accounting into two broad areas:
A. Accounting and valuation
B. Damages and Valuation
C. Investigative accounting and litigation support
D. Accounting and General Consulting
E. None of the above - ANS :C. Investigative accounting and litigation support
Which would NOT be included in the AICPA's definition of forensic accounting?
A. Auditing
B. Investigative Skills
C. Quantitative Methods
D. Accounting
E. None of the above - ANS :E. None of the above
Which is NOT one of the six areas of litigation services that the AICPA committee suggested in 1986?
A. Damages
B. Marital Counsulting
C. Valuation
D. Accounting
E. Analysis - ANS :B. Marital Counsulting
When comparing a financial audit with a forensic audit, which item would indicate a financial audit? A.
More-time consuming
,B.
Worrying about rules of evidence
C. Extensive use of interviewing
D. A sampling process
E. All of the above - ANS :D. A sampling process Which characteristic would NOT indicate a forensic
accounting investigation?
A. Principles-based
B. Narrow investigation scope
C. Proactive and ongoing
D. Future and historical
E. None of the above - ANS :B. Narrow investigation scope
T/F: Forensic accounting and fraud auditing are synonymous - ANS :False
T/F: The forensic accounting field is broader than fraud auditing - ANS :True
Which curriculum content item was ranked #1 in 2003 by research professors in a research study?
A. Effective report writing
B. Fundamentals of fraud
Shareholder litigation
D. Internal control evaluation
E. None of the above - ANS :B. Fundamentals of fraud
The burden of proof in a criminal proceeding is - ANS :Beyond a reasonable doubt
T/F: Theft is similar to embezzlement - ANS :False
,C.
T/F: Account receivables are the favorite target of fraudsters - ANS :False, Cash is King
T/F: Most cases go to trial, and pre-trial activities can be a significant opportunity for a forensic accountant -
ANS :False
T/F: Larceny is the taking of money or property lawfully in one's possession - ANS :False
T/F: Lapping is sometimes called "robbing Peter to pay Paul" - ANS :True
T/F: Write-offs to bad debt can conceal inventory thefts and kickback schemes - ANS :True
The most common method of detecting occupational fraud is:
A. External auditors
B. Internal auditors
C. Accident
D. Tip
E. Some other method - ANS :D. Tip
T/F: A forensic accountant can normally assume that the books and records are true and correct - ANS :False
T/F: Data-driven forensic techniques will always detect fraud schemes, including bribery and kickbacks -
ANS :False
Which statement is false?
A. Fraud courses are increasing in the US
B. Practitioners rank litigation services higher than educators
C. Finding fraud is not easy
D. Arthur Anderson was the auditor at HealthSouth during the massive fraud
E. None of the above - ANS :D. Arthur Anderson was the auditor at HealthSouth during the massive fraud
, D.
Building up balances in bank accounts based upon floating checks drawn against similar accounts is best
called:
A. Skimming
B. Kiting
C. Money laundering
Lapping
E. None of the above - ANS :B. Kiting
What audit step would be most appropriate for finding accounts receivables fraud?
A. Bank reconciliation audit
B. Gross profit analysis
C. Reviewing customer complaints
D. Surprise cash accounts
E. All of the above - ANS :C. Reviewing customer complaints
T/F: Peremtory refers to the fact that a forensic accountant can be proactive - ANS :True
T/F: A forensic accountant uses interviews and leveraging techniques designed to elicit sufficient information
to prove or disprove a hypothesis - ANS :True
T/F: A fraud investigation tends to be proactive - ANS :False
Joseph Wells believes that the most important audit technique is
A. Strong internal controls
B. Surprise cash accounts
C. Confirming account recievables
D. Diligent inquiry
E. None of the above - ANS :D. Diligent inquiry
(JAC2) (PJAC) ACTUAL EXAM QUESTIONS AND ANSWERS | LATEST
2026/2027 UPDATE (100% CORRECT) GRADED A+ | GUARANTEED
PASS.
An AICPA committee in 1986 broke forensic accounting into two broad areas:
A. Accounting and valuation
B. Damages and Valuation
C. Investigative accounting and litigation support
D. Accounting and General Consulting
E. None of the above - ANS :C. Investigative accounting and litigation support
Which would NOT be included in the AICPA's definition of forensic accounting?
A. Auditing
B. Investigative Skills
C. Quantitative Methods
D. Accounting
E. None of the above - ANS :E. None of the above
Which is NOT one of the six areas of litigation services that the AICPA committee suggested in 1986?
A. Damages
B. Marital Counsulting
C. Valuation
D. Accounting
E. Analysis - ANS :B. Marital Counsulting
When comparing a financial audit with a forensic audit, which item would indicate a financial audit? A.
More-time consuming
,B.
Worrying about rules of evidence
C. Extensive use of interviewing
D. A sampling process
E. All of the above - ANS :D. A sampling process Which characteristic would NOT indicate a forensic
accounting investigation?
A. Principles-based
B. Narrow investigation scope
C. Proactive and ongoing
D. Future and historical
E. None of the above - ANS :B. Narrow investigation scope
T/F: Forensic accounting and fraud auditing are synonymous - ANS :False
T/F: The forensic accounting field is broader than fraud auditing - ANS :True
Which curriculum content item was ranked #1 in 2003 by research professors in a research study?
A. Effective report writing
B. Fundamentals of fraud
Shareholder litigation
D. Internal control evaluation
E. None of the above - ANS :B. Fundamentals of fraud
The burden of proof in a criminal proceeding is - ANS :Beyond a reasonable doubt
T/F: Theft is similar to embezzlement - ANS :False
,C.
T/F: Account receivables are the favorite target of fraudsters - ANS :False, Cash is King
T/F: Most cases go to trial, and pre-trial activities can be a significant opportunity for a forensic accountant -
ANS :False
T/F: Larceny is the taking of money or property lawfully in one's possession - ANS :False
T/F: Lapping is sometimes called "robbing Peter to pay Paul" - ANS :True
T/F: Write-offs to bad debt can conceal inventory thefts and kickback schemes - ANS :True
The most common method of detecting occupational fraud is:
A. External auditors
B. Internal auditors
C. Accident
D. Tip
E. Some other method - ANS :D. Tip
T/F: A forensic accountant can normally assume that the books and records are true and correct - ANS :False
T/F: Data-driven forensic techniques will always detect fraud schemes, including bribery and kickbacks -
ANS :False
Which statement is false?
A. Fraud courses are increasing in the US
B. Practitioners rank litigation services higher than educators
C. Finding fraud is not easy
D. Arthur Anderson was the auditor at HealthSouth during the massive fraud
E. None of the above - ANS :D. Arthur Anderson was the auditor at HealthSouth during the massive fraud
, D.
Building up balances in bank accounts based upon floating checks drawn against similar accounts is best
called:
A. Skimming
B. Kiting
C. Money laundering
Lapping
E. None of the above - ANS :B. Kiting
What audit step would be most appropriate for finding accounts receivables fraud?
A. Bank reconciliation audit
B. Gross profit analysis
C. Reviewing customer complaints
D. Surprise cash accounts
E. All of the above - ANS :C. Reviewing customer complaints
T/F: Peremtory refers to the fact that a forensic accountant can be proactive - ANS :True
T/F: A forensic accountant uses interviews and leveraging techniques designed to elicit sufficient information
to prove or disprove a hypothesis - ANS :True
T/F: A fraud investigation tends to be proactive - ANS :False
Joseph Wells believes that the most important audit technique is
A. Strong internal controls
B. Surprise cash accounts
C. Confirming account recievables
D. Diligent inquiry
E. None of the above - ANS :D. Diligent inquiry
