Question: 1 Methods of proof used to develop evidence can be

1. Methods of proof used to develop evidence can be any of the following except:
a. Indirect methods
b. Direct methods
c. Straightforward
d. A combination of direct and indirect

2. Which of these statements is not a reason why a direct method of proof is preferable to other methods?
a. It is generally more persuasive.
b. It provides a greater level of certainty.
c. It is more easily understood.
d. It is harder to refute.
e. All of the above are reasons why a direct method is preferable.

3. Indirect methods are most often used when a firm’s books and records are complete and accurate.
a. True
b. False

4. Which of the following is not an indirect method employed by forensic accountants?
a. Source and application of funds method
b. Net worth method
c. Accounting equation transcription method
d. Percentage markup method

5. The indirect method that is most commonly used in situations where there is an accumulation of assets without a corresponding source of funds is the:
a. Net worth method
b. Gross profit method
c. Cash account method
d. None of the above

6. An indirect method that is used when a subject consumes income rather than accumulates assets is the:
a. Net worth method
b. Cash account method
c. Gross profit method
d. Source and application of funds method

7. For a forensic accountant to effectively employ the percentage markup method:
a. Unit sales prices and costs must be able to be established with reasonable certainty.
b. The number of customers must be known.
c. Administrative costs must be known.
d. None of the above is correct.

8. The primary driver for the selection of a method of proof is:
a. To employ a method that is sure to win
b. To develop evidence that is best suited to the facts and circumstances of the case
c. To ensure all revenue is accounted for
d. To ensure all assets are correctly valued

9. An expert’s opinion must be based on sufficient, reliable facts and data and be the product of applicable, reliable methodology.
a. True
b. False

10. Methods of proof can establish:
a. Intent to commit a crime
b. A proposition, such as unreported income
c. Both a and b are correct responses
d. Neither a nor b is a correct response

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