1. Prior to accepting a litigation-related engagement, the forensic accountant should consider whether they or their firm is professionally competent, objective and free of conflicts of interest with respect to the litigation matter.

a. True

b. False

2. Which of the following is NOT an appropriate factor to consider as to whether an expert's testimony or an expert's report will be admissable in Court?

a. Whether the analytical approach used achieves the result or opinion that the client desires.

b. Whether the theory or technique is tested or testable.

c. Whether the approach or methodology has been subjected to peer review or publication.

d. Whether the approach used by the expert is generally accepted within the professional community.

e. All of the above are appropriate considerations.

3. The seminal court case that provides guidance on the admissability of expert testimony in U.S. federal courts is:

a. Daubert v. Merrell Dow Pharmaceuticals

b. Mattco Forge, Inc. v. Arthur Young and Co.

c. Crandall Scuba v. PADI

d. Shadow Traffic Network, et al. v. The Superior Court of Los Angeles County

4. Which of the following is NOT a potential basis for exclusion of an expert report based on a reliability challenge?

a. Zhang used a well-accepted approach, is a recognized expert and did careful work to analyze damages using all the relevant evidence, but reached a different measure of damages than the opposing expert.

b. Emily is testifying as a financial expert. She analyzed all the transactions that were provided by counsel, but the information that the attorneys provided was incomplete.

c. Lourdes prepared an opinion of value based on a using a shortcut rule of thumb often used by industry participants, without other bases for her opinion.

d. All of these are potential bases to exclude an expert report based on challenges to reliability of the opinion.

5. In the context of litigation, damages are generally NOT recoverable for losses beyond an amount that the evidence permits to be established with reasonable certainty.

a. True

b. False

6. Eliza opened a new book store. It had been open only two months when there was a fire that destroyed the building and all Eliza's inventory. Eliza sued the commercial landlord, who was found to be responsible for the fire.

Eliza did not have reliable budgets or forecasts. The first two months were not profitable, because of a lot of non-recurring start up expenses..

Which approach would be most appropriate to determine his lost profits?

a. Yardstick or benchmark approaches comparing Eliza's store to other businesses just like hers.

b. A "before and after" approach relying on the two start-up months' data.

c. Eliza's damages can not be calculated because there is no way to establish damages with insufficient sales and cost history.

d. A disgorgement approach based on the landlord's profits.