Question 1

Which of the following types of organizations typically use Forensic Accountants?
A) Publicly held corporations.
B) Private/non-profit corporations.
C) Federal/State Agencies.
D) All of the above.

Accepted Answer

Forensic accountants may be employed by any type of organization that requires investigation of financial fraud, whether it be a publicly held corporation, private/non-profit corporation, or federal/state agency. Therefore, all of the above options are typically users of forensic accountants.

Question 2

What is one of the primary differences between a Financial Statement auditor and a Forensic Accountant?
A) Financial statement auditors are likely to follow leads suggested by immaterial items whereas Forensic Accountants often must restrict their efforts to searching for material misstatements.
B) Forensic Accountants are likely to follow leads suggested by immaterial items whereas financial statement auditors often must restrict their efforts to searching for material misstatements.
C) Forensic Accountants must focus on specific legal areas that produce fraud charges under the courts of law whereas financial statement auditors focus their attention on the Generally Accepted Accounting Principles.
D) Forensic Accountants are likely to ask individuals to fix discrepancies found in financial statements whereas financial statement auditors will fail a corporations financial statement certification, therefore having repercussions with the SEC.

Accepted Answer

The primary difference between a Financial Statement auditor and a Forensic Accountant is that financial statement auditors often must restrict their efforts to searching for material misstatements while Forensic Accountants are likely to follow leads suggested by immaterial items. This is because financial statement auditors are primarily concerned with the accuracy of financial statements while Forensic Accountants are more concerned with uncovering fraud or other illegal activities.

Question 3

Who was the founder of the Association of Certified fraud Examiners?
A) The 187th Congress of the United States.
B) President Bill Clinton.
C) Joseph Wells.
D) All of the above worked together to form the ACFE.

Accepted Answer

Joseph Wells is the founder of the Association of Certified Fraud Examiners. The 187th Congress of the United States and President Bill Clinton did not have any role in the establishment of the ACFE.

Question 4

If you are a litigation consultants and want to become credentialed by the National Association of Certified Valuation Analysts (NACVA), which credential would you be issued?
A) Certified Valuation Analyst.
B) Accredited Valuation Analyst.
C) Certified Forensic Financial Analyst.
D) National Valuation Analyst.

Accepted Answer

Litigation consultants looking to become credentialed by the National Association of Certified Valuation Analysts (NACVA) would be issued the Certified Forensic Financial Analyst (CFFA) credential, which is specifically designed for professionals involved in forensic accounting and financial litigation support.

Question 5

Which is one of the areas that the Sarbanes-Oxley Act of 2002 has made CEO's rely on forensic accountants heavily?
A)CEO's must now certify their financial statements.
B) CFO's must become qualified as forensic accountants.
C) To become a CEO in a public company, their personal financial records must be certified by a forensic accountant.
D) Both a and

Accepted Answer

The Sarbanes-Oxley Act of 2002 requires CEOs to certify their company's financial statements, making them potentially liable for any errors or fraud. This increased responsibility has led CEOs to rely heavily on the expertise of forensic accountants to ensure the accuracy and integrity of their financial reporting.

Question 6

Which of the following is not a skill needed by a Forensic Accountant?
A) Auditing Skills.
B) Criminology.
C) Sociology.
D) Information Technology.

Accepted Answer

Forensic accountants require auditing skills to examine financial records and detect fraud. They also need knowledge of criminology to understand the legal aspects of financial crimes. Information technology is necessary for analyzing data and identifying anomalies. However, sociology is not a skill required for forensic accounting.

Question 7

If you are a CPA and want to become credentialed by the National Association of Certified Valuation Analysts (NACVA), which credential would you be issued?
A) Certified Valuation Analyst.
B) Accredited Valuation Analyst.
C) Certified Forensic Financial Analyst.
D) National Valuation Analyst.

Accepted Answer

The National Association of Certified Valuation Analysts (NACVA) issues the Certified Valuation Analyst (CVA) credential to CPAs who meet their requirements and pass the certification process. This credential is specifically designed for CPAs who wish to demonstrate their expertise in business valuation.

Question 8

Forensic accounting can be broken into how many categories?
A) Two: Investigative and Litigation.
B) Two: Internal and External.
C) Three: Investigative, External, Preventative.
D) Three: Internal, Litigation, Certified.

Accepted Answer

Forensic accounting can be broken into two main categories: Investigative, which involves the detection and investigation of financial fraud, and Litigation, which involves the preparation of accounting evidence for use in a court of law.

Question 9

What is a way to become a CFS?
A) Complete a multi-part examination that covers the detection, deterrence, investigation, and prosecution of white-collar crime.
B) Complete the ACFS Academy core courses and take an examination at the end of each course.
C) Be grandfathered in by means of submitting information on the experience and education of the candidate.
D) All of the above are ways to become a CFS.

Accepted Answer

The first two options (A and B) outline specific educational and examination requirements, while the third option (C) is available for those with significant prior experience and education in the field. Therefore, all three options provide a pathway toward becoming a CFS.

Question 10

Forensic Accounting is defined as:
A) The practice of applying defined financial ratios to investigate a company's financial health.
B) The use of law enforcement to subpoena financial records to determine unlawful actions.
C) 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.
D) The investigatory arm of the Securities and Exchange Commission.

Accepted Answer

Forensic accounting involves using investigative and analytical skills to resolve financial issues in a manner that meets legal standards. This can involve analyzing financial statements, tracing funds, and detecting fraudulent activity. It differs from traditional accounting in that it is specifically geared towards legal proceedings and may require testimony in court. Option A is incorrect because financial ratios are just one tool in a forensic accountant's toolkit. Option B is incorrect because while law enforcement may be involved in some cases, it is not the defining characteristic of forensic accounting. Option D is incorrect because the Securities and Exchange Commission is a regulatory agency, not an investigatory arm of forensic accounting.

Question 11

If your actions are the result of misleading, intentional actions or inaction (including misleading statements and the omission of relevant information) to gain an advantage, then you have committed:
A) Perjury.
B) Contempt.
C) Treason.
D) Fraud.

Accepted Answer

The term "misleading, intentional actions or inaction to gain an advantage" is commonly associated with the definition of fraud. Perjury is lying under oath, contempt is disobedience/disrespect towards legal authority, and treason is a crime against one's own country.

Question 12

Which of the following events have made the Forensic Accounting industry more popular recently?
A) Corporate Scandals.
B) Sarbanes-Oxley Act of 2002.
C) Crime Dramas on Television.
D) Both a and

Accepted Answer

Both corporate scandals such as Enron and WorldCom, and the passing of the Sarbanes-Oxley Act, which requires companies to have stronger internal controls and financial reporting procedures, have increased the demand for forensic accounting services. While crime dramas on television may raise awareness of forensic accounting as a profession, they have not had a direct impact on its popularity.

Question 13

What is the most recognized fraud credential?
A) Certified Fraud Examiner (CFE).
B) Certified Public Accountant (CPA).
C) American Counsel of Accredited Business Accountants (ACABA).
D) Enrolled Agent (EA).

Accepted Answer

The Certified Fraud Examiner (CFE) credential is widely recognized as the most prominent and respected certification in the anti-fraud profession. It is awarded by the Association of Certified Fraud Examiners (ACFE) and requires a rigorous examination and years of professional experience. The CPA and EA credentials are important in the accounting field, but they are not specifically focused on fraud detection and prevention. The ACABA credential is not widely recognized outside of its own organization.

Question 14

Which of the following is NOT a way to become a Certified Fraud Specialist (CFS)?
A) Successfully completing a multipart examination that covers the detection, deterrence, investigation, and prosecution of white-collar crime.
B) A bachelor's degree in business or ten years of accounting-related experience and pass the two parts of the Certified Fraud Specialist examination.
C) Completing the ACFS Academy core courses and taking an examination at the end of each course.
D) Being grandfathered in by means of submitting information on the experience and education.

Accepted Answer

The answer of Which of the following is NOT a...

Question 15

If you are experienced in the valuation field and want to become credentialed by the National Association of Certified Valuation Analysts (NACVA), which credential would you be issued?
A) Certified Valuation Analyst.
B) Accredited Valuation Analyst.
C) Certified Forensic Financial Analyst.
D) National Valuation Analyst.

Accepted Answer

The credential issued by NACVA for experienced professionals in the valuation field is the Accredited Valuation Analyst (AVA). The other options listed are not credentials offered by NACVA.

Question 16

What types of organizations offer credentials to forensic accountants?
A) Association of Certified Fraud Examiners.
B) American College of Forensic Examiners.
C) Institute of Business Appraisers.
D) All of the above.

Accepted Answer

All three organizations - Association of Certified Fraud Examiners, American College of Forensic Examiners, and Institute of Business Appraisers - offer credentials to forensic accountants. Therefore, the best choice would be D.

Question 17

Which of the following two are types of auditors?
A) External and Internal
B) Internal and Forensic
C) Forensic and International
D) External and Forensic

Accepted Answer

The types of auditors are generally classified as external and internal. External auditors are independent individuals or firms hired by an organization to provide an objective opinion on the accuracy of its financial statements. Internal auditors, on the other hand, are employees of an organization who assess its operations and provide recommendations for improvement. Forensic auditing is a specialized type of auditing that involves investigating potential fraud, while international auditing refers to auditing in different countries or jurisdictions.

Question 18

Which of the following does a forensic accountant investigate?
A) Purchases of Businesses.
B) Valuation of divorce assets.
C) Calculation of lost profits.
D) All of the above.

Accepted Answer

Forensic accountants investigate all of the above and more, including fraud, embezzlement, and financial statement manipulation. They are often called upon to provide expert testimony in court cases related to financial disputes or criminal activities.

Question 19

What is the mission of the Association of Certified Fraud Specialists (ACFS)?
A) To encourage CPAs to report potential areas that a Forensic Accountant should be used within.
B) To pre-screen potential Forensic Accountants who would make good FBI agents.
C) To encourage its members to offer pro-bono service to the communities in which its members reside.
D) All of the above are part of the ACFS's mission.

Accepted Answer

The Association of Certified Fraud Specialists (ACFS) focuses on enhancing the professional expertise of its members, including encouraging them to offer pro-bono services to their communities, which aligns with promoting ethical standards and contributing to the public good.

Question 20

According to the 2002 Report to the Nation on Occupational Fraud and Abuse, what percentage of corporate revenues were lost in that year to fraud?
A) 2%.
B) 4%.
C) 5%.
D) 8%.

Accepted Answer

The 2002 Report to the Nation on Occupational Fraud and Abuse estimated that organizations lost about 5% of their revenues to fraud.

Quiz 1: Introduction to Forensic Accounting and Fraud Examination

Which of the following types of organizations typically use Forensic Accountants?

What is one of the primary differences between a Financial Statement auditor and a Forensic Accountant?

Who was the founder of the Association of Certified fraud Examiners?

If you are a litigation consultants and want to become credentialed by the National Association of Certified Valuation Analysts (NACVA) , which credential would you be issued?

Which is one of the areas that the Sarbanes-Oxley Act of 2002 has made CEO's rely on forensic accountants heavily?

Which of the following is not a skill needed by a Forensic Accountant?

If you are a CPA and want to become credentialed by the National Association of Certified Valuation Analysts (NACVA) , which credential would you be issued?

Forensic accounting can be broken into how many categories?

What is a way to become a CFS?

Forensic Accounting is defined as:

If your actions are the result of misleading, intentional actions or inaction (including misleading statements and the omission of relevant information) to gain an advantage, then you have committed:

Which of the following events have made the Forensic Accounting industry more popular recently?

What is the most recognized fraud credential?

Which of the following is NOT a way to become a Certified Fraud Specialist (CFS) ?

If you are experienced in the valuation field and want to become credentialed by the National Association of Certified Valuation Analysts (NACVA) , which credential would you be issued?

What types of organizations offer credentials to forensic accountants?

Which of the following two are types of auditors?

Which of the following does a forensic accountant investigate?

What is the mission of the Association of Certified Fraud Specialists (ACFS) ?

According to the 2002 Report to the Nation on Occupational Fraud and Abuse, what percentage of corporate revenues were lost in that year to fraud?