Deck 16: Remediation and Litigation Advisory Services

Question 1

Remediation is characterized as the steps necessary to "clean up the mess" after a fraud or financial crime has been discovered and investigated, and the results of the investigation have been reported.

Answer 1

True

Question 2

The first goal of the opposing attorney during cross examination is to destroy the expert's credibility, if possible.

Answer 2

True

Question 3

Corporate governance is the set of processes, customs, and policies that affect the way an organization is directed.

Answer 3

True

Question 4

The essence of criminal and civil litigation is controlled confrontation: both sides get the opportunity to present the facts and circumstances from their opposing perspectives.

Question 5

"Following the money" and "tracing the money" are identical activities and may have legal ramifications on amounts available for recovery.

Question 6

In contrast to a fact or lay witness, an expert witness is one who, by virtue of education, profession, publication, or experience, is believed to have special knowledge of his or her subject beyond that of the average person, sufficient that others may officially and legally rely upon the opinion.

Question 7

A judgment is a formal and temporary decision made by a court of law.

Question 8

With the Daubert Rule, the basis of foundation for the opinion may not be based on "junk science." Just because a person qualifies as an expert, that person cannot offer any opinion unless that opinion is reasonably grounded in scientific fact.

Question 9

Presenting a positive appearance can bolster credibility. Aspects of a positive appearance EXCLUDE:

A) Body language, including attentiveness and sitting up straight
B) Eye contact
C) Business attire
D) Abrupt or argumentative responses

Question 10

Once illegal money has been combined with money from legitimate sources, one can no longer follow the money; the money can't be traced.

Question 11

To prove fraud, the investigator needs to provide evidence that the perpetrator was involved in the act money or other assets are missing, the concealment there was an attempt to hide the act and possibly the assets, and the conversion benefits accrued to the perpetrator.

Question 12

When a defendant does not pay amounts owed to victims and plaintiffs as outlined in a judgment, the claimant may return to court to obtain various types of orders for the seizure and sale of specific property, usually at auction.

Question 13

A company should develop a system of internal controls that provides absolute assurance that assets are protected and financial statements are fairly presented.

Question 14

Freezing orders, restraining orders, and judicial injunctions are used early in a legal action to secure funds so that they do not disappear prior to obtaining a favorable verdict or negotiated settlement.

Question 15

Forensic accounting is the use of accounting for possible courtroom purposes.

Question 16

The Frye Rule makes an opinion inadmissible even if that opinion has general acceptance in the scientific community.

Question 17

Plaintiffs and victims have a number of possible legal mechanisms available to recover assets either through the civil or criminal justice system with the exception of:

A) Expropriation
B) Freezing orders
C) Judgments
D) Insurance and Bonds

Question 18

A deposition is a post-trial process by which the parties to a civil litigation are allowed to examine the other side's fact witnesses and expert witnesses.

Question 19

The ________ Rule makes an opinion admissible only if that opinion has general acceptance in the scientific community.

A) Frye
B) Daubert
C) Campbell
D) Brislin

Question 20

With the ________ Rule, the basis of foundation for the opinion may not be based on "junk science." Just because a person qualifies as an expert, that person cannot offer any opinion unless that opinion is reasonably grounded in scientific fact.

A) Frye
B) Daubert
C) Campbell
D) Brislin

Question 21

The control environment also excludes:

A) Integrity and ethical values
B) A passive board of directors and audit committee
C) Periodic assessment of the organizational structure
D) Human resource policies and practices that facilitate a good control environment

Question 22

At a minimum, corporate governance should address this issue:

A) Creating and maintaining a culture of honesty and high ethics
B) Evaluating fraud risks and implementing programs and controls to mitigate them
C) Developing an appropriate anti-fraud oversight process
D) All of the above

Question 23

Good corporate governance fosters:

A) Establishing a positive work environment by implementing programs and initiatives to enhance employee morale
B) Hiring and promoting employees who meet the high ethical standards of the entity
C) Disciplining those employees who fail to follow the code of conduct
D) All of the above

Question 24

This is an unusual paragraph. I'm curious how quickly you can find out what is so unusual about it. It looks so plain you would think nothing was wrong with it. In fact, nothing is wrong with it! It is unusual though. Study it, and think about it, but you still may not find anything odd. But if you work at it a bit, you might find out. Try to do so without any coaching!
What is unusual about this paragraph?

Question 25

The function of a deposition EXCLUDES:

A) Test or confirm theories and hypotheses
B) Develop a record under oath and thereby "freeze" a witness's testimony
C) Prove the defendant's guilt
D) Move the case toward settlement or trial

Question 26

In what types of cases may a forensic accountant serve as an expert witness?

Question 27

What three attributes must the plaintiff demonstrate in a civil framework?

Question 28

Albrecht notes types of symptoms that may indicate a fraud is occurring. Which is not such a symptom?

A) Accounting anomalies including irregular, unusual, or missing source documents
B) Internal control weaknesses including the lack of segregation of duties, physical safeguards, independent checks, proper authorization of documents and records
C) Tips and complaints from employees, customers, suppliers, family, and friends
D) A company listing in a national business magazine of "Top 100 companies to work for"

Question 29

What legal mechanisms may be used to recover assets in the civil and criminal justice systems?

Question 30

What is the difference between fact witnesses and expert witnesses?

Question 31

The expert witness can also present a negative impression through:

A) Illustrations and analogies
B) Confidence
C) Hesitation when answering questions
D) Concise organizations

Question 32

How does the legal system differentiate between "following" versus "tracing' the money?

Question 33

One of the most disturbing aspects of the audit process and corporate governance responsibility is that a certain cohort can do almost anything they want despite the systems of checks and balances designed to prevent asset misappropriation and financial statement fraud. This is referred to as management:

A) Override
B) Obligation
C) Duty
D) Custom

Question 34

What are the types of losses available for recovery?

Question 35

What two points must an injured party prove to recover money in a civil lawsuit?

Question 36

During cross-examination, the fraud examiner or forensic accountant has several goals, EXECPT for:

A) Be combative with the opposing attorney
B) Be cooperative
C) Maintain the credibility of his or her conclusions and opinions
D) Be alert for reasonable and proper opportunities to provide explanation and disagree

Question 37

The fraud examiner or forensic accountant should understand that the opposing lawyer will NOT:

A) Learn your field
B) Agree with your conclusions
C) Know your report
D) Know your resume

Question 38

During the investigation, the anti-fraud professional or forensic accountant has likely developed a number of presentation tools and analyses with the exception of:

A) Regression analyses
B) Link charts
C) The Evidence/Hypothesis Matrix
D) Timelines

Question 39

What steps should the forensic professional take, assuming that legal counsel initiated the fraud investigation?

Question 40

What is meant by remediation?

Question 41

What is a deposition and why is it used?

Question 42

What is meant by corporate governance and why is it important?

Question 43

When may an expert's opinion be subject to challenge?