An AICPA committee in 1986 broke forensic accounting into two broad areas: investigative accounting and litigation support. (Points: 2) True False 2. Consulting standards may apply to a forensic accountant. (Points: 2) True False 3. In 2002, a magazine ranked forensic accounting as one of the most secure career tracks. (Points: 2) True False 4. The Certified Fraud Examiner (CFE) designation is provided by the National Association of Certified Valuation Analysts. (Points: 2) True False 5. Misrepresentation is one of the three M's of financial reporting fraud. (Points: 2) True False 6. Booking income before receiving payments is called "channel stuffing" by the SEC (Points: 2) True False 7. The older fraud pyramid of Edwin Sutherland had these three factors of fraud: motive, opportunity, and rationalization. (Points: 2) True False 8. SAS No. 84 was superceded by SAS No. 99. (Points: 2) True False 9. Reactive auditing occurs when there are reasons to suspect that fraud may have occurred. (Points: 2) True False 10. Discovering fraud is like using a metal detector at a city dump to find some rare coins. (Points: 2) True False 11. To catch fictitious disbursements, compare the returned checks to the checkbook ledger. (Points: 2) True False 12. Chapter 11 bankruptcy is for municipalities. (Points: 2) True False 13. IRS Agents may not use indirect methods to determine unreported income. (Points: 2) True False 14. A Cash T is often used in the preliminary stages of a tax audit. (Points: 2) True False 15. Where the application of funds is greater than the sources, a person is deemed to have an understatement of income. (Points: 2) True False 16. Correspondent banks allow citizens from all over the world to have bank accounts within any U.S. bank. (Points: 2) True False 17. Money laundering is usually a separate crime by itself. (Points: 2) True False 18. Banks file their official reports about suspected money laundering activities with the Federal Trade Commission. (Points: 2) True False 19. Traceroute will show the web server path taken by a message over the Internet. (Points: 2) True False 20. Accountants appointed by a court as a special master are protected from disclosure under the attorney work product doctrine. (Points: 2) True False 21. A judge should consider whether the theory or technique existed before litigation began in order to decide whether to allow an expert to testify. (Points: 2) True False 22. Circumstantial evidence is evidence from which a fact at issue may be proved directly. (Points: 2) True False 23. The tax privilege protection extends to criminal tax matters before the IRS. (Points: 2) True False 24. Potential expert witnesses need not concern themselves about a Daubert challenge. That is really something that is dealt with by attorneys and the judge in a case. (Points: 2) True False 25. In some cases, damages may include expected lost future sales that result from lower product quality caused by faulty raw materials from a supplier. (Points: 2) True False 26. Deposition testimony is given in front of a jury and can be very scary. (Points: 2) True False 27. An attorney may limit the expert's ability to contact doctors, occupational therapists, and other third-party case participants in order to preserve certain legal relationships. (Points: 2) True False 28. Government statistics such as probability of life tables are interesting and have certain value to economist and statisticians, but they are not of value in determining damages in a wrongful death case because the data does not refer to the specific person involved in the case. (Points: 2) True False 29. In a wrongful discharge case, lost household services would not be part of the damage calculation. (Points: 2) True False 30. Deleted files can always be fully recovered. (Points: 2) True False 31. A hash number created for a text string can only be created for that single text string one time. (Points: 2) True False 32. Disconnecting a suspect's PC results in the loss of data found in the RAM. (Points: 2) True False 33. Every network Ethernet card has an address, typically assigned at the factory, called an IP address. (Points: 2) True False 34. Social security numbers can be purchased on the Internet. (Points: 2) True False 35. 209.215.182.7 is a valid IP address. (Points: 2) True False 36. Unauthorized access is usually not a cybercrime. (Points: 2) True False 37. Technological sophistication is needed to commit net frauds. (Points: 2) True False 38. Phishing is an electronic fraud method that occurs when someone pretends to be from a legitimate company and requests confidential information, such as passwords, from either a business or consumer. (Points: 2) True False 39. Expert witnessing can be traced back to a court decision in 1817 in what country? (Points: 2) Canada. United States. Scotland. Great Britain. None of the above. 40. Which statement is true? (Points: 2) Meyer Sefton was the first forensic accountant. Forensic accounting probably had its genesis in Canada. In the United States, the first federal income tax was passed in 1918. Maine legislated the first CPA law. None of the above. 41. An AICPA committee in 1986 broke forensic accounting into two broad areas: (Points: 2) Damages and valuation. Investigative accounting and litigation support. Accounting and valuation. Accounting and general consulting. None of the above. 42. Which would not be included in the AICPA's definition of forensic accounting? (Points: 2) Auditing. Investigative skills. Quantitative methods. Accounting. None of the above. 43. What would be a task of a litigation services practitioner? (Points: 2) Issue identifications. Expert testimony. Mediation. Arbitration. All of the above 44. Which would not be useful in searching for hidden assets? (Points: 2) Looking at lifestyles of major players. Computing industry ratios. Comparing cash flow with income. Using the net worth method. None of the above 45. Which of the following is not included in a forensic accountant's knowledge base? (Points: 2) Computer science. Criminology. Accounting. Law. All of the above are included 46. Which quality or characteristic is not outlined in Statement of Financial Concepts No. 2? (Points: 2) Relevance. Materiality. Timeliness. Transparency. All of the above is in the No. 2 statement 47. Employee fraud can be discovered by considering: (Points: 2) Behavioral habits. Employee stress factors. Lifestyle of the employee. Assets owned by the employee. All of the above. 48. A typical lower-level employee in a public business would engage mostly in which type of crime? (Points: 2) Fraud. Misappropriation of assets. Error. Embezzlement. Lapping. 49. COSO lists which of the following as the most common financial statement fraud methods? (Points: 2) Fictitious earnings. Overstatement of assets. Understatement of allowances for accounts receivable. All of the above. 50. What is not considered one of the three phases of fraud? (Points: 2) The act itself. The concealment. Conversion of the stolen asset to personal use. Searching for the fraudster. None of the above. 51. What audit step would be most appropriate for finding accounts receivables fraud? (Points: 2) A bank reconciliation audit. Gross profit analysis. Reviewing customer complaints. Surprise cash counts. All of the above 52. Which is not a behavioral, covert aspect of fraud? (Points: 2) Attitudes. Norms. Cash on hand. Values. All are behavioral aspects 53. Which of the following is an example of a proactive approach to fraud detection? (Points: 2) Logging of exceptions. Intelligence gathering. Reviewing variances. Effective internal controls. All of the above. 54. Which would not be a way to detect an individual engaging in procurement fraud? (Points: 2) Using audit rights. Involving duty to cooperate. Doing the parking lot test. Observing cliques. None of the above 55. Which probably would not help prevent procurement fraud through phantom vendors? (Points: 2) Doing a parking-lot test. Reviewing cliques within the sales department. Having an anonymous hot-line. Having an approved vendors list. All of the above would help prevent procurement fraud. 56. Banks must file which of the following forms when they become aware of suspicious customer activity related to possible money laundering? (Points: 2) Currency Transaction Report. Over-Currency Report. International Transportation of Currency and Money Report. None of the above. 57. The GMT time adjust to the East Coast of the United States is: (Points: 2) +5 hours. -5 hours. +3 hours. The time does not need to be adjusted. None of the above 58. Which item is not required in an expert's report? (Points: 2) List of cases that the expert has testified or been deposed in the past 10 years. All opinions to be expressed. The exhibits to be used. List of all publications within the past 10 years. All of the above. 59. Which of the following is not one of the eleven guidelines for evidence? (Points: 2) Externality. Proper disclosure. Sample size. Directness. All of the above are guidelines for evidence. 60. Taxpayer communications made to federally authorized tax practitioners are privileged, including: (Points: 2) Matters involving criminal matters. Tax advice regarding the promotion of tax shelters. The amount of charitable contributions. Investigations by regulatory agencies. None of the above. 61. In order for damages to be assessed, the court must find: (Points: 2) There is liability in the case. One of the parties is really bad. Criminal violations have occurred. Both a and c. None of the above is correct. 62. Deposition testimony: (Points: 2) Is given under oath. Requires both direct testimony and cross-examination testimony. Is taken during the discovery period of the case. Is given in lieu of trial testimony. Both a and c. 63. As a general rule it can be stated that: (Points: 2) ssociation and causation are two terms that mean the same thing as regression-correlation analysis. Correlation shows association but does not prove causation. Regression analysis shows causation and correlation analysis proves causation. All of the above are correct. 64. A simple but potentially useful method of estimating cost behavior is the: (Points: 2) Regression-correlation method. High-low method. Scatter-diagram method. By gut and by golly method 65. In Federal False Claims Act (FFCA) cases, whistleblowers typically: (Points: 2) Make lots of money. Are the first to bring suit in the case on behalf of the government. Act as their own attorney in the case. Are viewed as disgruntled employees. None of the above. 66. In federal antitrust cases, predatory pricing is assumed to have occurred if the plaintiff: (Points: 2) Prices products or services below its average variable costs. Prices products or services so that it loses money for three or more consecutive months. Prices products or services below industry standards. Intentionally loses money when competing with other businesses. None of the above. 67. An employee is seriously injured in a job-related accident. The employee has only been on the job 15 months before the accident occurred. Based on this information: (Points: 2) t will not be possible to include any wage growth rate into the damage calculations because the employee was not on the job long enough to develop a wage growth rate record. The financial expert can use an appropriate wage growth rate amount that can be found in statistics provided by the United States Department of Labor, Bureau of Labor Statistics. The discount rate the expert uses to discount the annual damage amounts will automatically adjust for wage growth rates. Wage growth rates are never used in job-related accident cases. 68. The present value of the damages in a wrongful death case: (Points: 2) Will always be less than the total value of the damages. Will always be more than the total value of the damages. Can be more or less than the total value of the damages, depending upon the discount rate selected by the expert. Are always the same as the total value of the damages. 69. When computing damages in a wrongful discharge case, the cost of job-related expenses: (Points: 2) Should be added to the damage estimate. Should be ignored. Should be subtracted from the damage estimate. Could be added or subtracted from the damage amount depending on the circumstances of the case. None of the above. 70. All of the following will destroy electronic evidence for courtroom purposes except: (Points: 2) Copying the document. Imaging the document. Improperly controlling its use. Normal shut down of a computer containing electronic evidence. 71. Seizure of a computer considered to be part of a cybercrime is done with which legal instrument (document)? (Points: 2) Warrant. Subpoena. Writ. Grand jury order 72. Manager's attitudes toward risk-taking in a corporate culture: (Points: 2) Do not belong in any part of the auditors' evaluative functions. Are part of the risk assessment procedures under the COSO IT framework. Are part of the internal control environment assessment under the COSO IT framework. Are usually assessed under SAS No. 99. 73. A zombie computer is: (Points: 2) A computer that has been taken over by a cyber criminal without the owner's knowledge. A computer taken over by a cyber criminal who is working with the owner's approval. There is no such thing as a zombie computer. This is what a computer is called that is geographically located in the Caribbean. 74. A nonmalicious but unauthorized entry into a computer network is most likely to be carried out by a: (Points: 2) Cracker. Hacker. Forensic accountant. Law enforcement. None of the above 75. A HTTP response code of "200" means the: (Points: 2) Web page was incompletely transferred. Web page was successfully received. The wrong web page was received. The web page was successfully sent. None of the above. 76. One way to hide my e-mail address is to: (Points: 2) Use a different PC than normally used to send my e-mail message. Use a proxy server for sending e-mail. Use a remailer. Both b and c. 77. Wardialing is a technique that is used: (Points: 2) To find other hackers on the Internet. By telemarketers to automatically call phone numbers. To locate modem tones. To create a brute force attack. None of the above. 78. The backdoor on a network or PC: (Points: 2) Is hidden software used to enter an already compromised website by the hacker at a later date. Is a hidden modem on a network. Is an actual physical entry point into the back of a web server. None of the above. 79. How is the value of a loss from a cybercrime defined under federal statutes (Section 814)? (Points: 2) Value of lost revenue. Losses from responding to the attack. Cost of restoring the system. All of the above are defined as losses under Section 814. 80. In committing financial frauds, cybercriminals use Trojans primarily to: (Points: 2) Gain unauthorized access to a PC. IP spoofing. Port scans. Send mail bombs