Forensics Final

What is the approximate admissibility rates of accountants and economists according to "Daubert on the Web."

.667

It can be argued that most attorneys and judges: 1) Know very little about accounting and financial concepts. 2) Understand that many cases rise or fall on everyone in the courtroom understanding the accounting issues in cases. 3) Require that all cases have forensic accounting experts involved in all cases. 4) None of the answers above is correct.

1) Know very little about accounting and financial concepts.

In an expert report, an expert witness must list all publications that he or she has authored in the past ______________ years.

10 years

Either or both sides in a case may petition the court to rule in its favor without going to trial. The requested action by the court is known as: 1) An amended pleading. 2) A summary judgment. 3) A hung jury. 4) A daubert challenge.

2) A summary judgment.

Fred sold his sister a parcel of land for $500,000. They both signed a purchase agreement for the sale on July 1. The actual transaction took place on October 1. By October 1 the land value had increased to $600,000. Therefore, Fred: 1) Should demand damages from his sister in the amount of $100,000 at the time the sale actually took place. 2) Has no basis for damages on this sale because the contract was already signed. 3) Has no basis for damages because he is related to the purchasing party. 4) Can cancel the sale of the land without any possibility of recourse by his sister.

2) Has no basis for damages on this sale because the contract was already signed.

The three major methods for computing "lost profits" include all of the following except: 1) The yardstick or benchmark approach. 2) The income tax method. 3) The before and after method. 4) The "but for" method.

2) The income tax method

One the main reasons that communications are so challenging in a forensic accounting environment is that 1) Attorneys just do not like accounting. 2) Jurors usually sleep through the testimony of accounting expert witnesses. 3) Much of the communications are in an adversarial environment. 4) There is just too little time to communicate all of the necessary information. 5) None of the above is correct.

3) Much of the communications are in an adversarial environment.

The response time for answering interrogatories in most states is _________________ days.

30

Some tort lost profit situations include all of the following except: 1) Patent infringement. 2) Gross negligence. 3) Slander/libel. 4) All of the above. 5) None of the above.

4) All of the above

Forensic accountants who choose to testify as experts at trial: 1) Must meet the Daubert standard to testify in state courts but at the federal court level the Frye standard applies. 2) Need to have at least a masters degree in accounting to testify in federal court. 3) Must meet a rigorous set of rules to testify at the federal level, which is different depending on the case issues. 4) Must meet the Daubert standards for federal court cases.

4) Must meet the Daubert standards for federal court cases.

SAS No. ____________ states that substantive test may not be sufficient for a system predominantly consisting of electronic evidence.

80

Carl sold Bill an asset with an alleged value of $400,000 for $350,000. After the sale it became clear that the true value of the asset was only $320,000. Under the "benefit of the bargain" rule, Bill's damages in this situation would be _________________.

80,000

One of the advantages that experts have is that they ____________.

All of the above

Which would not be considered a document for legal purposes?

All of the above are considered documents.

Which is not one of the four phases of interrogation?

All of the above are phases of interrogation

Which is not normally found in the discovery stage?

All of the above can be in the discovery stage.

An expert witness:

All of the above.

The _______________ Law states that there is approximately a 4.6 percent chance that the first digit in a number will be 9.

Benford

____________ evidence is evidence from which a fact at issue may be proven indirectly.

Circumstantial

_________________ evidence is evidence from which a fact at issue may be provided indirectly.

Circumstantial

There are two different courtroom environments: ____________________ and __________________.

Civil; criminal

An expert is not needed for ___________________ knowledge.

Common or general

Which is not a deductive approach to fraud-detection?

Custom software

_____________________________ is a technique that uses mathematical algorithms to seek hidden patterns or association in data.

Data mining

The challenge to determine the admissibility of an expert witness in federal court is called a(n) ______________________ challenge.

Daubert

The legal standard for qualifications for an expert witness in a federal case is the __________ standard.

Daubert

The two most acceptable scientific methods for deriving truth are the __________________ and _____________________ approaches.

Deductive; inductive

______________ evidence is an item that illustrates testimony but has no probative value in itself (e.g., a chart).

Demonstrative

Which is not one of the five major phases of litigation?

Demurrer

An expert witness may be required to testify under oath prior to the trial. This is known as ___________ testimony.

Deposition

Evidence that directly proves a fact at issue, without the need for any influence or presumption, is what kind of evidence?

Direct

The two basic types of evidence are __________________ and _____________________.

Direct; Circumstantial

Because expected damages in a case may cover a range of time periods, it is necessary to _______________ the damages back to their ________________.

Discount, present value

______________________________ involves the use of random-generating software to select the checks or other items that an auditor is auditing.

Discovery Sampling

____________________ _________________________ involves the use of random-number-generating software to select invoices that an auditor is auditing.

Discovery sampling

Which is not an inductive approach for fraud detection?

Discovery sampling.

A non-expert witness (lay or fact) cannot give an opinion in the courtroom.

False

Around 45 percent of contested disputes get to trial.

False

Daubert decisions are made by judges at the trial and appellant level.

False

Electronic evidence for civil actions is sought with a warrant or subpoena.

False

Expert witnesses have immunity from prosecution.

False

Hearsay evidence is not permitted in the courtroom.

False

Jurors can determine both the facts and law at the trial court level.

False

Law reviews are being cited less and less.

False

Like lawyers, an expert witness may sometimes accept a fee contingent on the success of his/her testimony.

False

People offer more accurate and complete information in face-to-face interviews or on a paper form then when filling out questionnaires on a computer.

False

The Federal Sentencing Guidelines are now mandatory.

False

The federal sentencing guidelines are still mandatory in some district courts.

False

Wikipedia as a resource is not being used by courts and judges.

False

To get to a federal court, one must raise the question of a(n) ______________ or diversity of citizenship.

Federal law

The concept that a prudent person could look into the future and see the actions of the offending party would damage the other party in the litigation is known as ______________.

Foreseeability

Which of the following is a way to challenge an expert?

Frye challenge

________________________ is the study and analysis of handwriting in relation to human psychology.

Graphology

All other things being equal one usually finds that the plaintiff's expert witness will compute damages that are_______ than the damages computed by the defendant's expert witness.

Higher

Which is not a software tool that collects digital data without changing it?

IDEA

If a lawyer brings into evidence an expert's inconsistent statements in the deposition, this situation is called _______________________.

Impeachment

A lawyer can bring a motion of ______________________ to exclude certain evidence or request that this offer be made outside the presence of the jury.

In limine

Which would not be a way for an expert witness to be excluded from the courtroom?

Inconsistent statements.

A ______________ trial is allowed in the U.S. District Courts and some state trial courts.

Jury

In order for a plaintiff to receive monetary damages in a case, the plaintiff must prove the defendant was _______ for the damages and that the plaintiff ___________________ as a result of the actions or lack of actions of the plaintiff.

Liable, suffered damages

________________ reports are more subjective and rely more on the professional judgment of the expert.

Opinion

A witness who may be able to provide background information is a ____________ witness.

Peripheral

The person who brings a complaint to the courtroom is called the __________________.

Plaintiff

The concept that damages were caused as a direct result of the offending parties actions or lack of actions is called __________________.

Proximate Cause

The two basic assumptions that underlie the concept of cost behavior are the ________________ assumption and the ______assumption.

Range, Time

Which would not be a privileged communication?

Report of an expert witness.

Side-taking refers to

Result-oriented work.

______________-______________ (result-oriented) work may result in a trial judge dismissing an expert.

Side-talking

The process of taking judicial notice can resemble a ___________________, although it is conceptually different.

Stipulation

What is meant by impeachment?

Suggesting that you changed your answer at trial.

Which item would not indicate that a document or invoice may be faked or altered?

Tax is shown for taxable items.

A COFEE device is installed on a USB flash drive and may be used to gather digital evidence from a computer.

True

A demurrer means no cause of action exists.

True

A forensic accountant hired as a consultant is generally immune from discovery

True

An expert should not give an opinion of what the law is, and should be careful about citing code sections.

True

An expert witness can refer to his or her report whenever necessary while they are being questioned.

True

An expert witness' testimony is considered to be evidence.

True

Billions of pages of information are stored on printers, copiers, and facsimiles.

True

Cases today may involve as many as eight expert witnesses.

True

In a district court trial, the jurors cannot determine the law.

True

Leading questions can be asked on direct examination to the opposing party or to hostile witnesses.

True

Sacramental communication is privileged communication in most states.

True

Third-party evidence is generally more persuasive than evidence from within an organization involved in litigation.

True

While cross-examining a witness, an attorney may ask leading questions.

True

If an attorney challenges the qualifications of an expert witness regarding the expert's skills, education, knowledge, or experience related to the case in question, it is referred to as a _____________ challenge.

Voir Dire

A defendant admit or denies any allegations in a(n) ___________________.

answer

Digital analysis is considered to be the _______________ approach to scientific method.

deductive

A chart, diagram, or video is considered to be ________________ evidence.

demonstrative

At a ________________, which takes place outside a courtroom, witnesses are required to answer oral questions under oath.

deposition

Much of the work for forensic accountants occurs in the ___________________ stage.

discovery

A simple but not necessarily statistically valid method of estimating fixed and variable cost form a set of cost and activity data is called the ___________________.

high-low method

A motion of ________________ may be used to exclude evidence or request that an offer be made outside the presence of a jury.

in limine

Unlike the situation with attestation engagements, ______________ is not a factor used to determine whether a CPA performing litigation services has a conflict of interest.

independence

A motion of ________________ may be used to attempt to disqualify an expert witness.

limine

The difference between the actual value received in a transaction and the actual value conveyed in the transaction is called the ___________________.

out-of-pocket loss

The concept that damages were caused as a direct result of the offending parties actions or lack of actions is called __________________.

proximate cause

The most powerful and statistically valid method of estimating cost behavior is _________________________________.

regression-correlation analysis

The _______________ rule is one major exception to the relaxation of the formal rules of evidence in administrative proceedings.

residuum

The two types of damages in a case are_________ and __________.

restitution and reliance

The two types of harm in a case are_____ and _________________.

tort and breach of contract