What may prevent a company from having complete internal records?

• A) Fire or flood
• B) Employee resistance
• C) Lack of customers
• D) Legal restrictions

Under the Federal Rules of Evidence, who is considered competent?

• A) Only experts
• B) Only mentally fit adults
• C) Every person unless otherwise stated
• D) Only eyewitnesses

Why do surveillance officers frequently rotate the lead position?

• A) To save resources
• B) To avoid suspicion from the subject
• C) To avoid exhaustion
• D) To maintain radio contact

Why are bank records considered reliable in fraud investigations?

• A) They come from an unaffiliated third party
• B) They are based on assumptions
• C) They are easy to hide
• D) They are self-prepared

What is the main drawback of using internet sources in fraud investigation?

• A) Expensive to use
• B) Time consuming
• C) Verification of sources is difficult
• D) Restricted to public sector only

What type of consent is required to obtain an individual’s credit report?

• A) Verbal consent
• B) Written consent
• C) No consent
• D) Court order only

In fraud investigation, documentation must be handled like:

• A) Civil or criminal litigation evidence
• B) Routine company files
• C) Academic research papers
• D) Marketing records

An investigator asks, “What would your next house look like?” The subject’s eyes move to the right and up. What does this indicate?

• A) Constructing new images
• B) Auditory memory
• C) Remembering past visuals
• D) Internal dialogue

If evidence is true but not related to facts, it becomes:

• A) Secondary evidence
• B) Expert testimony
• C) Inadmissible
• D) Strong evidence

The theory or technique is generally accepted in the relevant technical community is covered in which one of the following non-exhaustive factors established by the court to aid judges in assessing the reliability of expert testimony?

• A) Testing
• B) Error rates
• C) Peer reviews
• D) Acceptability

Which one of the following strategic methods cannot be used by the opposing counsel to discredit witnesses or to diminish the importance of their testimony?

• A) Support opposing sides theory
• B) New information
• C) Contradiction
• D) Foresighted

Brainstorming sessions during an audit are meant to:

• A) Assign clerical tasks to junior auditors
• B) Plan audit fees
• C) Discuss potential fraud schemes and assess related risks
• D) Reduce audit workload

In a fraud-related litigation, attorneys often hire an SME. In this context, SME stands for:

• A) Strategic Market Evaluator
• B) Subject Matter Expert
• C) Special Management Expert
• D) Standard Monitoring Expert

Professional skepticism requires auditors to:

• A) Assume management is always dishonest
• B) Assume management is always honest
• C) Ignore management’s explanations entirely
• D) Balance between not assuming dishonesty nor unquestioned honesty

Which of the following is NOT a responsibility of auditors regarding fraud?

• A) Assess the risk of material misstatement due to fraud
• B) Understand causes and signs of fraud
• C) Provide a guarantee that fraud does not exist
• D) Show due care and professional skepticism

Pretestimony activities generally encompass preparing the report of the expert witness to a final stage including a discussion of all the following financial aspects, EXCEPT:

• A) Opinion and conclusion based on the available documentation
• B) Date of information cut-off
• C) Details of how the data is processed
• D) Limitations of opinion and sensitivity to assumptions

Forensic accounting services primarily involve:

• A) Application of accounting, auditing, law, and investigative skills
• B) Preparing payroll and bookkeeping records
• C) Providing loans and financial advice to entities
• D) Only auditing and preparing tax returns

Which one of the following strategic methods can be used by the opposing counsel to discredit witnesses or to diminish the importance of their testimony?

• A) Impartiality
• B) Concord
• C) Bias
• D) Judicious

If an auditor identifies a fraud that has been ongoing for 24 months and the same audit firm conducted the previous year’s audit, the situation could:

• A) Raise concerns about the prior audit’s quality
• B) Be ignored as it is management’s fault
• C) Be reported directly to shareholders
• D) Only affect current year’s audit opinion

During an interview, a suspect frequently touches their face and avoids eye contact. What might this suggest?

• A) Confidence
• B) Truthfulness
• C) Relaxed state
• D) Possible stress or deception