Chapter 8

Question 1

What is the goal of a forensic accountant?

Answer 1

To assist the attorney to avoid, if possible, the cost and uncertainty of a trial.

Question 2

What are the five major phases of litigation?

Answer 2

Pleadings, discovery, trial, outcome, possible appeal.

Question 3

In which phase does most forensic accounting work occur?

Answer 3

The discovery stage.

Question 4

What are the Federal Rules of Civil Procedure (FRCP)?

Answer 4

Rules governing U.S. district courts in civil cases.

Question 5

What is the burden of proof in a criminal proceeding?

Answer 5

Beyond a reasonable doubt.

Question 6

What is the burden of proof in a civil proceeding?

Answer 6

Preponderance of the evidence.

Question 7

What are the types of litigation services provided by accountants?

Answer 7

Consultant, expert witness, court-appointed expert or special master.

Question 8

What is the role of a consultant forensic accountant?

Answer 8

To interpret evidence, advise on strategy, gather facts, locate expert witnesses, and help experts form opinions without testifying.

Question 9

Is a consultant’s work protected from disclosure?

Answer 9

Yes, usually protected by the attorney work product privilege.

Question 10

How can an attorney maximize client confidentiality when using a consultant?

Answer 10

Retain the consultant directly, have the agreement between attorney and expert, direct the investigation, and be present at initial client meeting.

Question 11

On what must an expert witness base their opinion?

Answer 11

Sufficient relevant evidence.

Question 12

Can an expert base opinions on business records not placed into evidence?

Answer 12

Yes

Question 13

Can an expert qualify without formal training?

Answer 13

Yes; qualification can be based on knowledge, skill, experience, training, or education.

Question 14

How does an expert witness differ from a lay witness?

Answer 14

A lay witness testifies to facts; an expert explains complex subjects to the judge or jury.

Question 15

What is the Frye standard?

Answer 15

A test requiring expert’s testimony to be based on theories generally accepted by the relevant professional community.

Question 16

Under Rule 702, what must an expert show to testify?

Answer 16

Testimony helps the trier of fact; expert is qualified; testimony is based on sufficient data and reliable methods applied reliably.

Question 17

What did Daubert v. Merrill Dow establish?

Answer 17

Judges must ensure expert testimony is both relevant and reliable.

Question 18

What did Kumho Tire v. Carmichael extend?

Answer 18

The judge’s gatekeeping responsibility to all expert testimony, not just scientific.

Question 19

What factors from Daubert help judges evaluate expert testimony?

Answer 19

Testing, peer review, error rate, and general acceptance.

Question 20

What are guidelines for expert witnesses to avoid legal challenges?

Answer 20

Know and apply standards, literature, organizations; use multiple methods; disclose assumptions; peer review; test for reasonableness.

Question 21

What increases an expert’s persuasiveness?

Answer 21

Being neutral and objective.

Question 22

What does SKEET stand for in litigation services?

Answer 22

Skills, Knowledge, Experience, Education, Training.

Question 23

What might an expert be asked at a deposition?

Answer 23

Scope of assignment, job title, education, licenses, experience, memberships, publications, qualifications, prior work, compensation, opinions, bases for opinions.

Question 24

What are primary goals of an expert witness at trial?

Answer 24

Communicate truth ethically and effectively; maintain integrity; interact respectfully; make complex matters understandable.

Question 25

Accountants acting as consultants (who will not testify) are not protected from the disclosure under the attorney work product doctrine

Answer 25

False

Question 26

An accountant may testify as a lay witness or an expert witness

Answer 26

True

Question 27

Generally, non expert witnesses cannot give opinions

Answer 27

True

Question 28

A majority of the states have adopted Daubert

Answer 28

True

Question 29

An experts report must include the compensation to be paid

Answer 29

True

Question 30

Much of the work in the forensic accountant occurs in the trial stage

Answer 30

False

Question 31

An expert witness cannot testify about hearsay evidence

Answer 31

False

Question 32

Depositions are a method of discovery

Answer 32

True

Question 33

The Daubert standard does not apply to nonscientific testimony

Answer 33

False

Question 34

An expert would probably be able to

Answer 34

Give an opinion that embraces an ultimate issue to be decided by the trier of facts State that their opinion is based on a reasonable degree of scientific certainty An expert testifies regarding their opinion without first testifying to the underlying facts or data An expert bases their opinion on evidence not admissible in evidence if of a type reasonably relied upon by experts in the particular field

Question 35

The Frye standard

Answer 35

May be used in some state courts

Question 36

One of the weaknesses that experts have is that they

Answer 36

Must rely on assumptions Worry about the facts they do not know

Question 37

What are subject matter expertise under Fed. Rule 702 of evidence

Answer 37

Special Knowledge Special Skills Special Training Special Education

Question 38

What might cause an expert to be rejected by the court

Answer 38

Frye Challenge Spoliation Ghost Written Report Conflict of Interest