Determine Smith’s economic loss
1. John Smith was in an auto accident as he was going to work. The car that hit him was at fault. As a result, Mr. Smith spent several weeks in the hospital. Only 35 years old, John has said he can never work again. The insurance company for the driver at fault does not agree and is contesting the claim. Smith’s attorney has hired you as a financial forensics expert. What type of support will you provide to Smith’s attorney? (Points : 2) Conduct surveillance of Smith’s activities
Determine Smith’s economic loss
Gather evidence to determine if Smith is lying
Determine the financial amount the insurance company can pay Smith
risk tolerant corporate culture and coercion intent and damages lack of financial incentive and disparate impact lack of intent and benefit |
Suspicion Predication Critical review Remediation |
Use adversarial techniques to gather evidence Determine whether internal controls will prevent financial fraud Render an opinion on the cause of the fraud Use financial evidence to prove fraud allegations |
A forensic accountant because there will be financial damages involved A fraud examiner because Mr. Barnes had expenses involved with the infidelity A fraud examiner because Mrs. Barnes is proving default on a contract A forensic accountant because Mr. Barnes will receive a portion of the estate. |
All may involve litigation support All may involve gathering evidence All use similar investigative techniques All are impacted by the SOX Act |
An investment broker conducting transactions A bookkeeper recording transactions A salesman attempting to get his customer the best price A cashier accepting payments |
In the company culture In the fraud examiner’s recommendations In an employee’s mind In management’s implementation of internal controls |
To meet analysts’ predictions To recover losses from investments To maintain organizational structure To maintain an extravagent lifestyle |
Internal controls Fraud detection Risk assessment Calculation of damages |
This fraud perpetrator has more access to assets This fraud perpetrator uses collusion This fraud perpetrator must maintain a good reputation This fraud perpetrator has a higher lifestyle to maintain |
When an individual has been arrested for fraud. When a fraud suspect has been identified When a company requires an internal control system test When several fraud suspects need to be investigated |
Asset misappropriation fraud schemes Financial statement fraud schemes Public corruption schemes Company kickback fraud schemes |
Adversarial Cautious Subjective Objective |
Methods following generally accepted auditing standards Methods following the Sarbanes Oxley Act Methods to determine who is responsible Methods to determine the financial impact |
Using a company gas card to fuel your personal vehicle Taking home office supplies and giving them to your children Shopping online using a company computer during work hours Constantly leaving work early |
ego motivation conversion collusion |
Minimal losses to victims Untrained investigative personnel Lack of investigative resources Lack of interest by prosecutors |
An allegation of defamation of character To complete the taxes for a business Search for hidden assets in a divorce case To detemine the cause of inventory shrinkage at a company |
Forensic auditing and expert witness services Forensic auditing and investigative services Investigative services and expert witness services Litigation advisory services and investigative services |