Question :
3.2 Multiple-Choice Questions
1) Which of the following statements true of : 1222569
3.2 Multiple-Choice Questions
1) Which of the following statements is true of the engaging attorney?
A) The basic purpose of attorneys is to advocate for their clients.
B) Attorneys are generally unwilling to sacrifice the expert’s reputation even at the cost of client.
C) It is not possible to distinguish a bad attorney from a good one.
D) Keeping the expert in the loop is a sign of a red flag that the attorney might be bad.
2) Which of the following is true of a joint expert?
A) A joint expert’s opinion is considered more subjective.
B) Hiring a joint expert increases fees and the time.
C) Hiring a joint expert is most common in domestic litigation.
D) The chances of conflict of interest increases when a joint expert is hired.
3) Which of the following is true of the deadlines of a forensic accounting engagement?
A) The deadlines for an engagement are decided by the engaging client, after consulting with the forensic accountant.
B) The deadlines for an engagement are flexible and can be altered to meet the requirements of the expert.
C) Missing a report deadline can result in serious consequences, including court sanctions and damage to one’s reputation.
D) Missed deadlines can be easily extended by filing a request for an extension with the court.
4) Which of the following is considered to be a safe compensation arrangement for a forensic accountant?
A) a lump sum amount
B) a commission based on the success of the engagement
C) an advance payment for the full amount
D) an hourly fee with a retainer
5) Dimitriv, a forensic accountant, is hired by the court to provide additional insight into the ongoing trial against Blue Rock, Inc. Dimitriv holds a large share of Blue Rock’s stock. Which of the following can be inferred of this case?
A) an engagement letter is not necessary
B) lack of professional competence
C) conflict of interest exists
D) nature of engagement is unclear
6) Which of the following is a reason for rejecting an engagement in which conflicts of interest has been identified?
A) It leads to disagreements between an attorney and an expert.
B) It impairs independence and objectivity of the forensic accountant.
C) It results in disclosure of confidential or sensitive information.
D) It undermines the attorney-client privilege.
7) Which of the following is true in when a conflict of interest exists in an engagement?
A) A potential conflict of interest need not be disclosed if it does not affect the independence of the forensic accountant.
B) A verbal consent is sufficient to acknowledge the potential conflict and waive any objections related thereto in the presence of a judge.
C) An engagement in which a potential conflict has been identified can be accepted if the conflict does not impair the objectivity of the forensic accountant to a large extent.
D) If a potential conflict of interest is identified, it must be fully disclosed to the client before the engagement is accepted.
8) Which of the following does a conflict of interest generally indicate?
A) The objectivity of the forensic accountant is likely to be impaired.
B) The testimony of the expert will have an adverse impact on the case presented by the attorney.
C) The outcome of the trial will be adverse to the interest of the client.
D) The attorney-client privilege will cease to be in force for the remaining period of the trial.
9) Which of the following can help in identifying a potential conflict of interest?
A) reviewing the subject complaint
B) engaging the services of a detective
C) assessment of the jury
D) statements made by the attorney and expert
10) Which of the following is true of engagement letters?
A) Engagement letters can be modified with the approval by both parties.
B) Engagement letters are generally addressed to the expert to establish the expert’s relationship as the attorney’s agent.
C) Engagement letters are treated as privileged communication and need not be disclosed to the court.
D) Engagement letters for providing litigation services are required under the AICPA’s professional standards.
