Chapter 1: Intro

Question 1

What Is Forensic Accounting?

Answer 1

Forensic accounting is the application of investigative and analytical skills for the purpose of resolving financial issues in a manner that meets standards required by courts of law.

Question 2

Forensic Accountant

Answer 2

Forensic accountants apply special skills in accounting, auditing, finance, quantitative methods, certain areas of the law, research, and investigative skills to collect, analyze, and evaluate evidential matter and to interpret and communicate findings.

Question 3

Fraud Examination

Answer 3

is a branch of Forensic Accounting that focuses on fraud investigations.

Question 4

What are the two AICPA categories of forensic accounting

Answer 4

investigation services - fraud focus

litigation services - mediation, arbitration, expert testimony

Question 5

Defalcation

Answer 5

Appropriation of assets for the benefit of those who do not rightfully deserve them.

Question 6

Misrepresentation

Answer 6

Act of presenting oneself in a manner that does not agree with reality. The presentation could be the result of actions, statements, or omissions.

Question 7

Knowledge and Skills of the Forensic Accountant

Answer 7

Auditing, investigative, and communication skills; criminology; legal; psychology; IT; and Accounting

Question 8

Opportunities in Forensic Accounting

Answer 8

Fraud prevention and investigation, litigation support, computer forensics

Question 9

Arbitration

Answer 9

Process of hearing and deciding a case that involves parties that have taken different positions.

Question 10

Error

Answer 10

Unintentional misstatement or omission of information.

Question 11

External Auditor

Answer 11

Accountant who conducts an audit of the financial statements to determine if the assets, liabilities, owners’ equity, revenue, gains, expenses, losses, and cash flows in accordance with GAAP.

Question 12

Internal Auditor

Answer 12

Employee who verifies information produced by other employees or processes in the organization; may also work on special projects

Question 13

Fraud

Answer 13

Means by which a person can achieve an advantage over another by false suggestions or suppression of the truth.
Needs intent

Question 14

Mediation

Answer 14

Act of assisting parties with differing perspectives to arrive at the compromise.

Question 15

What is the most recognized fraud credential?

Answer 15

CFE - Certified Fraud Examiner