Multiple Choice Questions:

1. To what does the word forensic pertain?

a. Financial audits when fraud is involved.

b. A particular type of accounting

c. Matters relating to law and courts of law.

d. Prosecutorial investigations.

2. For an act to be considered fraud, which of the following ingredient is required?

a. Large loss.

b. Legal entity (e.g., a corporation, partnership, or trust).

c. Intentional harm.

d. Intentional action or inaction.

3. Which of the following is outside the area of forensic accounting?

a. Corporate acquisitions.

b. Divorce.

c. Contract disputes.

d. None of the above.

4. Which area of accounting is most closely associated with forensic accounting?

a. Information systems.

b. Managerial accounting.

c. Consulting.

d. Auditing.

5. The Sarbanes-Oxley Act requires which of the following?

a. Auditors to receive specialized training in the act.

b. The CEO to certify the financial statements.

c. Management to institute a zero tolerance policy for fraud.

d. None of the above.