ch16 - Chapter 16 Multiple Choice 16-1. B 16-2. B 16-3. A...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 16 Multiple Choice 16-1. B 16-2. B 16-3. A 16-4. B 16-5. C 16-6. D 16-7. A 16-8. D 16-9. D 16-10. D 16-11. D 16-12. A 16-13. D 16-14. C 16-15.B 16-16.B 16-17.D 16-18.C 16-19.D 16-20.C Discussion Questions 16-21 [LO 1] Minutes after your college graduation, your family is gathered around discussing your achievements and future plans. Your uncle asks what exactly you plan to do with your degree in accounting. While there are many career opportunities, you explain, you are going to become a CPA and gain experience as an auditor. “You’re going to work for the IRS!” your uncle exclaims. “No,” you clarify, “I’m going to audit companies, not individuals’ taxes.”Your uncle replies, “Great, we need more people out there to catch those corporate crooks. You’re going to make a great financial detective.” What type of accountant is your uncle really thinking of? What other designations are beneficial to such an accountant? What are the job responsibilities and activities performed by an accountant who is a “financial detective”? Your uncle is really thinking about a forensic accountant. The term forensic accounting most commonly refers to fraud investigations and accounting work to support legal actions. The Association of Certified Fraud Examiners (ACFE) is one of the premier organizations for forensic accountants. The ACFE provides training and education in fraud detection and investigation, and it oversees all aspects of the Certified Fraud Examiner (CFE) certification process. The job responsibilities of the forensic accountant include investigative forensic services and litigation support . Litigation support typically involves serving as an expert witness in a court
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
case. Investigative services typically focus on investigations of accounting records and transactions or suspected frauds and may or may not involve testifying in court. To perform investigative services and litigation support, forensic accountants need broad knowledge and an extensive skill set. Forensic accountants need knowledge of financial transactions and internal control systems, and an understanding of criminology, fraud investigation, legal systems, and legal elements of fraud. They also rely on psychology and theories of human behavior as they develop their work plans. Forensic accountants must understand common fraud schemes and how frauds are perpetrated. They need strong interpersonal and excellent quantitative skills to effectively collect, analyze, and evaluate evidence. 16-22 [LO 2] Gene is a new staff-level auditor on the audit of CalPower, a publicly traded energy and utility company. On his first day, his senior informs him that the engagement team is scheduled to have lunch with the internal auditor to discuss ways to improve this year’s audit. While Gene has heard a lot about internal auditing in school and has some friends who recently
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/02/2012 for the course BUSINESS 101 taught by Professor - during the Spring '11 term at Mississippi Valley State University.

Page1 / 20

ch16 - Chapter 16 Multiple Choice 16-1. B 16-2. B 16-3. A...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online