1. What is the value of the statement of cash flows?
a. Easy to structure
b. Difficult to manipulate
c. Regimented in its layout
d. Interpreted by CPAs

2. Preparing a statement of cash flows is an excellent test of a forensic accountant’s understanding of the income statement and balance sheet and how they _____ to each other.
a. Reverse
b. Develop
c. Relate
d. Contrast

3. Each of the following is a cash flow analysis technique except:
a. Reconciling cash
b. Conjoint analysis
c. Cash flow comparisons
d. Trend analysis

4. Which of the following is not a common cash flow manipulation scheme?
a. Stretching out payables
b. Financing of payables
c. Securitization of receivables
d. Compromising property, plant, and equipment

5. As prescribed in SAS No. 99, journal entry testing is a way to identify:
a. Possible fraudulent entries
b. Internal control consequences
c. Management prerogatives
d. Employee sanctions

6. Computer- assisted audit tools help identify journal en-tries that should be manually investigated by a forensic accountant.
a. True
b. False

7. _____ is a systematic technique for categorizing words into content categories using special coding rules.
a. Operations analysis
b. Content analysis
c. Journal entry testing
d. Data parsing

8. A personal financial statement often consists of a single form that reports an individual’s personal assets and liabilities as well as personal sources of income and expenses.
a. True
b. False

9. Personal balance sheets are usually stated at:
a. Historical cost
b. Purchase price
c. Market value
d. Amortized value

10. Each of the following is a type of forensic accounting engagement that may involve the analysis of personal financial statements except:
a. Embezzlement fraud
b. Conscription fraud
c. Arson
d. Domestic relations