Question

1. The best source of information for identifying conflicts of interest is:
a. The engaging attorney
b. The presiding judge
c. Reading the complaint
d. Talking to the plaintiff

2. If all members of a firm have passed the CPA exam, they have the appropriate competencies for any type of forensic accounting engagement.
a. True
b. False

3. Determining the nature and scope of a proposed engagement allows a forensic accountant to do which of the following?
a. Assess the engagement's risk
b. Plan the engagement
c. Develop a supervision plan
d. Price the engagement
e. All of the above are benefits of scope qualification.

4. A retainer is an advance payment for services that is earned as services are completed.
a. True
b. False

5. The preferred compensation arrangement for a forensic accountant is:
a. Percentage of the damage award
b. Contingent fee based on the final outcome of an engagement
c. Hourly fee with a replenished retainer
d. All of the above are acceptable compensation arrangements.

6. An engagement letter identifies all of the following aspects of an engagement except:
a. The party who will cross- examine witnesses in a trial
b. Responsible parties
c. Compensation arrangement
d. Scope limitations
e. Nature of the relationship

7. An engagement letter is a contract that defines the legal relationship, as well as the obligations, of each party to an engagement.
a. True
b. False

8. It is not possible to modify an engagement letter once it is signed by all parties.
a. True
b. False

9. A Kovel letter provides a basis for protecting the communications of a forensic accountant under the attorney- client privilege.
a. True
b. False

10. The AICPA requires an engagement letter for all litigation services provided by a forensic accountant.
a. True
b. False

11. Framing a case involves identifying the key parameters that drive case development.
a. True
b. False



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  • CreatedMarch 04, 2015
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