The scheme involving recording fictitious sales and frequently includes falsified sales,
inventory, and shipping records is called:
a.Sham sales.
b.Recognition of conditional sales.
c.Improper cutoff of sales.
d.Consignment sales.
Why would a forensic accountant want to investigate all vendors listed for a business
during a bankruptcy investigation?
a.To ensure that they are not owed any money by the debtor.
b.To ensure that they are actually real vendors and not just fronts for hiding assets.
c.To see if they want to recover any assets such as inventory that the business may have
on hand prior to bankruptcy disposition.
d.All of the above.
Describe horizontal and vertical analysis?
What is biometrics?
a.Identifying a person through others recognizing them.
b.The art of reconstructing a persons identification through DNA samples.
c.Identifying persons by physical characteristics.
d.Identifying a person through their computer usage habits.
Explain the Specific objectives of internal control?
Which chapter applies to both individuals and businesses, and is designed to completely
liquidate the debtor’s assets and discharge the debtor’s liabilities?
a.Chapter 7.
b.Chapter 9.
c.Chapter 11.
d.Chapter 13.
Bringing a pre-written list of questions to an interview:
a. Will lead to tunnel vision and not allow for a good interview.
b. Should always be done, and a list of questions provided to the interviewee prior to
the interview.
c. Will lead to a shorter, less time consuming interview.
d. Should be approved by the corporation paying for the investigation prior to the
interview.
Signs or symptoms of actions that may have been performed for the purpose of
deceiving or concealing are referred to as:
a.Affirmative indications.
b.Positive indications.
c.Affirmative acts.
d.Criminal acts.
What does computer forensics involve?
Why should all accounting data files be encrypted?
a.To prevent direct file alteration.
b.To prevent accidental invoices from being created.
c.To provide forensic accountants with an audit trail.
d.All of the above.
Which of the following is not a step in calculating the Guideline Publicly Traded
Company Method?
a.Average the net realizable assets of the guideline companies.
b.Adjust the financial statements of the guideline companies to make them comparable
to the subject company.
c.Compute various price-based financial ratios for the guidelines companies.
d.Select guideline companies.
Explain Rule 702 of the Federal Evidence Rules.
Describe the chain of custody and the challenges it presents with computers.
Can the Fifth Amendment be invoked by a taxpayer when it comes to willful failure to
file return, supply information, or pay tax; why or why not?
What are litigation services?
a.It is another term for a law firm.
b.It is a specialized branch of forensic accounting.
c.It is the service provided to the courts to determine an equitable judgment.
d.It is an out of court settlement service for corporations.
Describe some types of physical evidence.
Which of the following is a reason not to initially confront the fraudster prior to
beginning an investigation?
a. It is illegal to confront a fraudster without a court order.
b. You never know who the fraudster is without an investigation.
c. Catching them in the act through observation can lead to quicker convictions or plea
bargains.
d. All of the above.
While considering legal issues prior to beginning a fraud examination, what are three
considerations?
What type of information should a forensic accountant keep in their log of activities
when dealing with computers?
a.names, dates, times, and computer serial numbers.
b.names, programs used and items found.
c.computer serial numbers, network types used and viruses found.
d.all of the above.