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.

Accepted Answer

Remediation refers to the actions taken to address and rectify the damage caused by a fraud or financial crime after its discovery and investigation. It may include restitution, disciplinary actions, changes to policies and procedures, and other measures aimed at preventing future incidents.

Question 2

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

Accepted Answer

The primary goal of cross examination is to discredit the expert witness and weaken their testimony in the eyes of the judge or jury.

Question 3

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

Accepted Answer

Corporate governance refers to the structures and principles that guide the direction and control of an organization, which includes its processes, customs, and policies.

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.

Accepted Answer

Criminal and civil litigation both involve a form of controlled confrontation where both sides have the opportunity to present their perspectives on the facts and circumstances of the case.

Question 5

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

Accepted Answer

"Following the money" generally refers to tracking the movement of money to uncover information or patterns, such as in investigations of financial crimes or corruption. "Tracing the money," however, is a more specific legal process used to identify specific assets or funds that have been mixed with other assets, for the purpose of recovering the original amount in legal actions. While related, they are not identical and are used in different contexts.

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.

Accepted Answer

An expert witness is believed to have special knowledge beyond that of the average person and their opinion is legally relied upon by others. This is in contrast to a fact or lay witness who may only testify to what they personally observed or experienced.

Question 7

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

Accepted Answer

A judgment is a formal and final decision made by a court of law, not a temporary one.

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.

Accepted Answer

The statement correctly describes the Daubert Rule, which requires that expert testimony be based on reliable scientific methodology and reasoning, and not on mere speculation or unsupported claims. This helps ensure that expert opinions presented in court are founded on sound scientific principles and are more likely to be accurate and trustworthy.

Question 9

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

Accepted Answer

Abrupt or argumentative responses can detract from a positive appearance and credibility.

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.

Accepted Answer

This statement is false. While it may be more difficult to trace the money once it is mixed with legitimate funds, it is not impossible. Financial institutions and law enforcement agencies have methods for tracking and identifying suspicious transactions. Money laundering is a crime precisely because authorities are able to follow the money trail and identify illicit activity.

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.

Accepted Answer

To prove fraud, the investigator needs to establish these four key elements - (1) there was an act of money or property taken or something of value stolen, (2) there was an intent to deceive or conceal the crime or asset, (3) there was an attempt to hide the act, and (4) the perpetrator benefited or gained from the act. So, the statement is true.

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.

Accepted Answer

This is true. The claimant can obtain orders for the seizure and sale of specific property to collect on a judgment if the defendant does not pay the owed amounts.

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.

Accepted Answer

While internal controls are essential to protect assets and ensure accurate financial reporting, no system can provide absolute assurance. There is always the possibility of errors or fraud, intentional or unintentional. The goal is to design and implement a strong system of internal controls that reduces the risk of such concerns to an acceptable level.

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.

Accepted Answer

The answer of Freezing orders, restraining orders, and judicial injunctions...

Question 15

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

Accepted Answer

Forensic accounting is the practice of utilizing accounting, auditing, and investigative skills to identify and analyze financial information for possible courtroom purposes such as legal disputes, fraud investigations, and insurance claims.

Question 16

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

Accepted Answer

The Frye Rule, originating from Frye v. United States (1923), actually states that expert opinion based on a scientific technique is admissible only when the technique is sufficiently established to have gained general acceptance in the particular field to which it belongs.

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:

Accepted Answer

Expropriation is a process where the government takes private property for public use, not a mechanism for plaintiffs and victims to recover assets through civil or criminal justice systems.

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.

Accepted Answer

A deposition is a pre-trial process, not a post-trial process. It is conducted before the trial to gather evidence and information from witnesses that may be used during the trial.

Question 19

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

Accepted Answer

The Frye Rule, also known as the Frye Standard, is a test used by courts to determine the admissibility of scientific evidence. Under this rule, scientific evidence is admissible only if it is generally accepted in the relevant scientific community.

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.

Accepted Answer

The Frye Rule pertains to the admissibility of expert testimony, but does not specifically address the use of scientific evidence. The Daubert Rule, on the other hand, sets the standard for the admissibility of scientific evidence and requires that the expert's opinion be based on reliable methods and principles. The Campbell and Brislin Rules are not relevant to this topic.

Quiz 16: Remediation and Litigation Advisory Services