Question 1

Which of the following statements is true of a forensic accountant's summary report?

Accepted Answer

A)  It is structured to provide a comprehensive discussion of the assignment, allowing the reader to develop a greater understanding of the data, reasoning, and analyses leading to the conclusions stated. 
B)  A summary report usually mentions methodologies considered but not used. 
C)  When presenting a summary report, the objective is to provide a credible and legally sufficient communication within the time and cost limitations. 
D)  A summary report usually presents calculation of a range of values, given certain facts and assumptions and the result is shown as a calculated value. 
A)  It is structured to provide a comprehensive discussion of the assignment, allowing the reader to develop a greater understanding of the data, reasoning, and analyses leading to the conclusions stated. 
B)  A summary report usually mentions methodologies considered but not used. 
C)  When presenting a summary report, the objective is to provide a credible and legally sufficient communication within the time and cost limitations. 
D)  A summary report usually presents calculation of a range of values, given certain facts and assumptions and the result is shown as a calculated value. C

Question 2

Which of the following statements is true of flash memory media?

Accepted Answer

A)  Data are recorded by a laser in this type of media that alters light-sensitive dyes within the disk. 
B)  The absence of moving parts or sensitive surfaces makes this type of media relatively less vulnerable to damage. 
C)  Data are stored by altering the magnetic polarity of chips. 
D)  The recording process introduces the possibility of mechanical failure in this type of media. 
A)  Data are recorded by a laser in this type of media that alters light-sensitive dyes within the disk. 
B)  The absence of moving parts or sensitive surfaces makes this type of media relatively less vulnerable to damage. 
C)  Data are stored by altering the magnetic polarity of chips. 
D)  The recording process introduces the possibility of mechanical failure in this type of media. B

Question 3

Which of the following statements is true of the methods of proof?

Accepted Answer

A)  Unlike the indirect method of proof, the direct method of proof is based on inference rather than personal knowledge. 
B)  The indirect method of proof provides a lesser level of uncertainty compared to the direct method of proof. 
C)  Unlike the indirect method of proof, the direct method of proof is built on circumstantial evidence. 
D)  The indirect method of proof is easier to refute compared to the direct method of proof. 
A)  Unlike the indirect method of proof, the direct method of proof is based on inference rather than personal knowledge. 
B)  The indirect method of proof provides a lesser level of uncertainty compared to the direct method of proof. 
C)  Unlike the indirect method of proof, the direct method of proof is built on circumstantial evidence. 
D)  The indirect method of proof is easier to refute compared to the direct method of proof. D

Question 4

Which of the following is an example of data stored in "the clouds"?

Accepted Answer

A)  Blu-ray disks 
B)  USB flash drives 
C)  Google Docs 
D)  tape cartridges 
A)  Blu-ray disks 
B)  USB flash drives 
C)  Google Docs 
D)  tape cartridges

Question 5

The purpose of a ________ in computer forensics is to detect and recover data that has been concealed on a computer system.

Accepted Answer

A)  file analysis 
B)  timeframe analysis 
C)  hidden data analysis 
D)  active data analysis 
A)  file analysis 
B)  timeframe analysis 
C)  hidden data analysis 
D)  active data analysis

Question 6

Bezone Corp.is being alleged of tax fraud for the financial year 2015-2016.The ending net worth for the period was $2.285m and beginning net worth was $1.595m.Expenditures (consumption)during the period amounted to $0.725m.The reported income in Bezone's tax return amounted to $0.69.Other legitimate sources of funds in the tax return reported an income of $0.31.Calculate the inferred unreported income using the net worth method of indirect proof.

Accepted Answer

A)  $0 
B)  $0.725m 
C)  $0.415m 
D)  $0.075m 
A)  $0 
B)  $0.725m 
C)  $0.415m 
D)  $0.075m

Question 7

The indirect method of proof ________ compared to the direct method of proof.

Accepted Answer

A)  provides a greater level of certainty 
B)  is harder to refute in court 
C)  is generally less persuasive 
D)  is more easily understood 
A)  provides a greater level of certainty 
B)  is harder to refute in court 
C)  is generally less persuasive 
D)  is more easily understood

Question 8

Which of the following statements is true of projected earnings in a damages claim?

Accepted Answer

A)  Calculating lost wages requires the projection of two separate earnings streams: past lost earnings and recoverable lost earnings. 
B)  Lost earnings constitutes the difference between pre-injury earnings and post-injury earnings. 
C)  Pre-injury earnings and post-injury earnings are the two subcomponents of lost earnings in a civil litigation claiming damages. 
D)  Post-injury earnings is what the plaintiff would have earned if not for the injury. 
A)  Calculating lost wages requires the projection of two separate earnings streams: past lost earnings and recoverable lost earnings. 
B)  Lost earnings constitutes the difference between pre-injury earnings and post-injury earnings. 
C)  Pre-injury earnings and post-injury earnings are the two subcomponents of lost earnings in a civil litigation claiming damages. 
D)  Post-injury earnings is what the plaintiff would have earned if not for the injury.

Question 9

Which of the following statements is true of forensic accountants in litigations involving computer forensics?

Accepted Answer

A)  In cases where a computer expert is needed, the forensic accountant may rely on the computer expert's opinions in forming his or her own opinions but should not assist the court in selecting the expert. 
B)  In cases where a computer expert is needed, the forensic accountant may assist the court in selecting the expert but should not rely on the computer expert's opinions in forming his or her own opinions. 
C)  Although forensic accountants are not expected to evaluate a computer expert's analysis, they should have sufficient knowledge of the subject matter to identify any gross errors or failures. 
D)  Although forensic accountants are not expected to have sufficient knowledge of the subject matter to identify any gross errors or failures, they should evaluate a computer expert's analysis. 
A)  In cases where a computer expert is needed, the forensic accountant may rely on the computer expert's opinions in forming his or her own opinions but should not assist the court in selecting the expert. 
B)  In cases where a computer expert is needed, the forensic accountant may assist the court in selecting the expert but should not rely on the computer expert's opinions in forming his or her own opinions. 
C)  Although forensic accountants are not expected to evaluate a computer expert's analysis, they should have sufficient knowledge of the subject matter to identify any gross errors or failures. 
D)  Although forensic accountants are not expected to have sufficient knowledge of the subject matter to identify any gross errors or failures, they should evaluate a computer expert's analysis.

Question 10

Relevant damage categories for compensatory damages include damages that are compensable by law and are measurable within the realm of economics.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following statements is a valid reason for inconsistencies in opinions of damages experts?

Accepted Answer

A)  A large component of economic damages is past damages, the calculation of which relies on projections of inherently uncertain past events. 
B)  Economic damages calculations require the application of logic, which allows for multiple interpretations. 
C)  Damages are calculated for specific individuals or entities, with many unique attributes that are universally perceived or evaluated. 
D)  All past economic damages must be reduced to present value, which requires the application of a discount rate. 
A)  A large component of economic damages is past damages, the calculation of which relies on projections of inherently uncertain past events. 
B)  Economic damages calculations require the application of logic, which allows for multiple interpretations. 
C)  Damages are calculated for specific individuals or entities, with many unique attributes that are universally perceived or evaluated. 
D)  All past economic damages must be reduced to present value, which requires the application of a discount rate.

Question 12

________ of indirect proof is generally limited to retail establishments rather than illegal businesses.

Accepted Answer

A)  Cash method 
B)  Gross margin method 
C)  Expenditures method 
D)  Bank deposits method 
A)  Cash method 
B)  Gross margin method 
C)  Expenditures method 
D)  Bank deposits method

Question 13

The two components of lost earnings in a civil litigation claiming damages are

Accepted Answer

A)  expected lost earnings and unexpected lost earnings. 
B)  past lost earnings and recoverable lost earnings. 
C)  past lost earnings and future lost earnings. 
D)  past lost earnings and unexpected lost earnings. 
A)  expected lost earnings and unexpected lost earnings. 
B)  past lost earnings and recoverable lost earnings. 
C)  past lost earnings and future lost earnings. 
D)  past lost earnings and unexpected lost earnings.

Question 14

Which of the following statements is true of the calculation of economic damages in a civil litigation?

Accepted Answer

A)  All future economic damages must be reduced to present value, which requires the application of a discount rate. 
B)  Calculations of economic damages are often based on a set of foundational assumptions rather than facts. 
C)  Interest on past economic damages is always calculated by a forensic accountant. 
D)  Worklife expectancy is the period of time a person is expected to live past retirement. 
A)  All future economic damages must be reduced to present value, which requires the application of a discount rate. 
B)  Calculations of economic damages are often based on a set of foundational assumptions rather than facts. 
C)  Interest on past economic damages is always calculated by a forensic accountant. 
D)  Worklife expectancy is the period of time a person is expected to live past retirement.

Question 15

Which of the following statements best differentiates compensatory and punitive damages in civil litigation?

Accepted Answer

A)  Compensatory damages are meant to reward a plaintiff, while punitive damages are meant to reward a defendant. 
B)  Compensatory damages are meant to compensate a plaintiff's loss, while punitive damages are meant to deter similar misconduct by the same defendant or other parties in the future. 
C)  Compensatory damages are meant to reward a defendant, while punitive damages are meant to punish a claimant. 
D)  Compensatory damages are benefit streams the plaintiff would have received if not for the injury, while punitive damages are the benefit streams the plaintiff will receive for future damages. 
A)  Compensatory damages are meant to reward a plaintiff, while punitive damages are meant to reward a defendant. 
B)  Compensatory damages are meant to compensate a plaintiff's loss, while punitive damages are meant to deter similar misconduct by the same defendant or other parties in the future. 
C)  Compensatory damages are meant to reward a defendant, while punitive damages are meant to punish a claimant. 
D)  Compensatory damages are benefit streams the plaintiff would have received if not for the injury, while punitive damages are the benefit streams the plaintiff will receive for future damages.

Question 16

Compensatory damages are meant to compensate a negligence of defendant,while punitive damages are meant to punish intentional nonperformance of duties by a defendant.

Accepted Answer

A) True 
 B)False

Question 17

The direct method of proof is always preferable to the indirect method because it

Accepted Answer

A)  provides a lesser level of uncertainty. 
B)  is generally more dissuasive. 
C)  is easier to refute. 
D)  uses more circumstantial evidence. 
A)  provides a lesser level of uncertainty. 
B)  is generally more dissuasive. 
C)  is easier to refute. 
D)  uses more circumstantial evidence.

Question 18

Which of the following statements is true of the cloud storage media?

Accepted Answer

A)  Data are recorded by a laser in this type of media that alters light-sensitive dyes within the disk. 
B)  Data are stored by altering the magnetic polarity of disks or tapes in this type of media. 
C)  Cloud storage media on devices is usually maintained by others that can be accessed through the Internet. 
D)  The recording process requires rotation of the disk or tape, which introduces the possibility of mechanical failure in cloud storage media. 
A)  Data are recorded by a laser in this type of media that alters light-sensitive dyes within the disk. 
B)  Data are stored by altering the magnetic polarity of disks or tapes in this type of media. 
C)  Cloud storage media on devices is usually maintained by others that can be accessed through the Internet. 
D)  The recording process requires rotation of the disk or tape, which introduces the possibility of mechanical failure in cloud storage media.

Question 19

To make a report effective,a forensic accountant

Accepted Answer

A)  should be concise even if it not comprehensive. 
B)  should be mindful of the plaintiff requirements rather than audience. 
C)  should avoid redundant statements. 
D)  should not rely on others' work. 
A)  should be concise even if it not comprehensive. 
B)  should be mindful of the plaintiff requirements rather than audience. 
C)  should avoid redundant statements. 
D)  should not rely on others' work.

Question 20

The primary role of an economic expert in a damages claim is to

Accepted Answer

A)  prepare a reviewing and critiquing the opposing expert's report. 
B)  place a dollar value on the various damages components that have been identified. 
C)  establish the facts of the damages claim to define the nature and extent of the injury. 
D)  establish the parameters of the damages determine the impact of the injury on the plaintiff. 
A)  prepare a reviewing and critiquing the opposing expert's report. 
B)  place a dollar value on the various damages components that have been identified. 
C)  establish the facts of the damages claim to define the nature and extent of the injury. 
D)  establish the parameters of the damages determine the impact of the injury on the plaintiff.

Which of the following statements is true of a forensic accountant's summary report?

Which of the following statements is true of flash memory media?

Which of the following statements is true of the methods of proof?

Which of the following is an example of data stored in "the clouds"?

The purpose of a ________ in computer forensics is to detect and recover data that has been concealed on a computer system.

The indirect method of proof ________ compared to the direct method of proof.

Which of the following statements is true of projected earnings in a damages claim?

Which of the following statements is true of forensic accountants in litigations involving computer forensics?

Relevant damage categories for compensatory damages include damages that are compensable by law and are measurable within the realm of economics.

Which of the following statements is a valid reason for inconsistencies in opinions of damages experts?

________ of indirect proof is generally limited to retail establishments rather than illegal businesses.

The two components of lost earnings in a civil litigation claiming damages are

Which of the following statements is true of the calculation of economic damages in a civil litigation?

Which of the following statements best differentiates compensatory and punitive damages in civil litigation?

Compensatory damages are meant to compensate a negligence of defendant,while punitive damages are meant to punish intentional nonperformance of duties by a defendant.

The direct method of proof is always preferable to the indirect method because it

Which of the following statements is true of the cloud storage media?

To make a report effective,a forensic accountant

The primary role of an economic expert in a damages claim is to

Introduction to the World of Forensic Accounting

The Legal Environment of Forensic Accounting

Screening and Staging Engagements

Gathering Evidence Interviews and Observations

Financial Statements Analysis Reading Between the Lines

Fraud and White-Collar Crime

Conducting a Fraud Investigation

Transforming Data Into Evidence

Transforming Data Into Evidence

Professional Responsibilities

Fundamentals of Business Valuation

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Exam 12: Special Topics

Which of the following statements is true of a forensic accountant's summary report?

Which of the following statements is true of flash memory media?

Which of the following statements is true of the methods of proof?

Which of the following is an example of data stored in "the clouds"?

The purpose of a ________ in computer forensics is to detect and recover data that has been concealed on a computer system.

The indirect method of proof ________ compared to the direct method of proof.

Which of the following statements is true of projected earnings in a damages claim?

Which of the following statements is true of forensic accountants in litigations involving computer forensics?

Relevant damage categories for compensatory damages include damages that are compensable by law and are measurable within the realm of economics.

Which of the following statements is a valid reason for inconsistencies in opinions of damages experts?

________ of indirect proof is generally limited to retail establishments rather than illegal businesses.

The two components of lost earnings in a civil litigation claiming damages are

Which of the following statements is true of the calculation of economic damages in a civil litigation?

Which of the following statements best differentiates compensatory and punitive damages in civil litigation?

Compensatory damages are meant to compensate a negligence of defendant,while punitive damages are meant to punish intentional nonperformance of duties by a defendant.

The direct method of proof is always preferable to the indirect method because it

Which of the following statements is true of the cloud storage media?

To make a report effective,a forensic accountant

The primary role of an economic expert in a damages claim is to

Introduction to the World of Forensic Accounting

The Legal Environment of Forensic Accounting

Screening and Staging Engagements

Gathering Evidence Interviews and Observations

Financial Statements Analysis Reading Between the Lines

Fraud and White-Collar Crime

Conducting a Fraud Investigation

Transforming Data Into Evidence

Transforming Data Into Evidence

Professional Responsibilities

Fundamentals of Business Valuation

Filters