Question : 11) Which of the following generally covered in an engagement : 1222570

11) Which of the following is generally covered in an engagement letter?

A) research plan

B) deadlines given by the court

C) evidence required to be gathered

D) right to terminate

12) Which of the following is true of an engagement letter?

A) It is addressed to the expert, to establish an agent relationship.

B) It cannot be amended once signed by both parties.

C) It is a necessary requirement for litigation services as per the AICPA’s professional standards.

D) It establishes the nature of an engagement and any protections attached therewith.

13) Joseph Smith, a forensic accountant, is considering whether to accept an engagement or not. From the preliminary information of the case, he is not able to identify a specific conflict of interest. However, he realizes that there is a chance that the engagement might create the perception of a conflict of interest in the professional community. Joseph should

A) accept the engagement as there is not real conflict of interest.

B) not accept the engagement because law does not allow acceptance of such engagements.

C) accept the engagement because perception of conflict is not likely to affect him.

D) not accept the engagement as perception of a conflict could erode his credibility.

14) Framing a case refers to

A) the identification of all critical aspects of a case.

B) an economic assessment of an engagement’s risks and rewards.

C) the development of the engagement letter.

D) the identification of responsible parties.

15) Which of the following is true of jurisdiction in terms of a forensic accounting engagement?

A) It does not impact the manner in which evidence is presented.

B) Practitioners need not address any jurisdictional issues with engaging counsel.

C) It is the domain over which a court exercises judicial authority.

D) It is not a factor that is considered by a forensic accountant while framing a case.

16) When performing an engagement, which of the following professional standards should be adhered to?

A) development standards, which address the development of the expert’s opinion

B) research standards, which address the process to be followed while conducting a research

C) scientific standards, which address the schedule of the scientific approach

D) engagement standards, which address the issues to be considered while accepting an engagement

1. General/ethical standards, including issues such as integrity and objectivity, professional competence, and due professional care

2. Development standards, which address the development of the expert’s opinion (including sufficiency and reliability of the data, scope limitations, and methodology)

3. Reporting standards, which address the form and content of the expert’s report

17) Which of the following is true of the last step of the scientific process?

A) It requires the use of inductive and deductive reasoning to arrive at conclusions.

B) It involves an objective evaluation of all evidence collected in a case followed by an estimation of the probability that the hypothesis is valid.

C) It involves use of techniques such as financial statements analysis.

D) It requires the forensic accountant to form a working hypothesis.

18) Which of the following is a reason why relevant dates should be determined while framing a case?

A) It determines the assumptions to be made.

B) It affects the evidence-gathering process.

C) It defines the time to be taken to complete the engagement.

D) It acts as a scope limitation.

19) Which of the following is a step in the scientific process?

A) re-statement of the purpose specified in the engagement letter

B) identify the conflict of interest

C) form a hypothesis

D) testify under oath

20) Which of the following is generally considered to be the most difficult task in the scientific process?

A) defining the purpose

B) forming a hypothesis

C) gathering evidence

D) drawing conclusions