Forensic Accounting Study Guide
Test 2 Study Guide
Chapter 6
1. Is fraud only prosecuted criminally or are there other methods to prosecute for fraud?
a. Fraud may be prosecuted criminally or civilly.
2. What is the standard by which law enforcement making arrest adhere to?
a. Probable cause
3. What makes evidence admissible in court?
a. Evidence is admissible in court if it is relevant, its probative value outweighs any prejudicial effects, and it is trustworthy, meaning that it is subject to examination and cross-examination.
4. Who is responsible for the auditing of public companies under Sarbanes Oxley?
a. Public Company Accounting Oversight Board (PCAOB)
5. What does the Sarbanes Oxley act do or address?
a. Establish higher standards for corporate governance and accountability, create an independent regulatory framework for the accounting profession, enhance the quality and transparency of financial reports, develop severe civil and criminal penalties for corporate wrongdoers, and establish new protections for corporate whistleblowers.
b. It addresses corporate governance and accountability as well as public accounting responsibilities in improving the quality, reliability, integrity, and transparency of financial reports.
6. What does the PCAOB do?
a. Register public accounting firms that prepare audit reports for issuers.
b. Establish, or adopt, by rule, auditing, quality control, ethics, independence, and other standards relating to the preparation of audit reports for issuers.
c. Conduct inspections of registered public accounting firms.
d. Conduct investigations and disciplinary proceedings and impose appropriate sanctions.
e. Enforce compliance with the act, the rules of the board, and other applicable rules and regulations.
f. Establish budget and manage the operations of the board and its staff.
7. Is it required that the external auditors attest to issue a report on managements internal controls
a. It recommends and requires
8. Under Sarbanes Oxley, is it
Chapter 6
1. Is fraud only prosecuted criminally or are there other methods to prosecute for fraud?
a. Fraud may be prosecuted criminally or civilly.
2. What is the standard by which law enforcement making arrest adhere to?
a. Probable cause
3. What makes evidence admissible in court?
a. Evidence is admissible in court if it is relevant, its probative value outweighs any prejudicial effects, and it is trustworthy, meaning that it is subject to examination and cross-examination.
4. Who is responsible for the auditing of public companies under Sarbanes Oxley?
a. Public Company Accounting Oversight Board (PCAOB)
5. What does the Sarbanes Oxley act do or address?
a. Establish higher standards for corporate governance and accountability, create an independent regulatory framework for the accounting profession, enhance the quality and transparency of financial reports, develop severe civil and criminal penalties for corporate wrongdoers, and establish new protections for corporate whistleblowers.
b. It addresses corporate governance and accountability as well as public accounting responsibilities in improving the quality, reliability, integrity, and transparency of financial reports.
6. What does the PCAOB do?
a. Register public accounting firms that prepare audit reports for issuers.
b. Establish, or adopt, by rule, auditing, quality control, ethics, independence, and other standards relating to the preparation of audit reports for issuers.
c. Conduct inspections of registered public accounting firms.
d. Conduct investigations and disciplinary proceedings and impose appropriate sanctions.
e. Enforce compliance with the act, the rules of the board, and other applicable rules and regulations.
f. Establish budget and manage the operations of the board and its staff.
7. Is it required that the external auditors attest to issue a report on managements internal controls
a. It recommends and requires
8. Under Sarbanes Oxley, is it