Question

QUESTION 1 Income and cash flows One of the most challenging issues associated with the discounted income and cash flows modelis Establishing for the loss period Projecting into the future Auditing during similar historical periods Benchmarking based on Industry norms QUESTION 2 The method of quantifying lost revenues and increased expenses whereby some data exist that can be used to demonstrate how the revenues, expenses, and/or profits related to the ability claim for the loss period would have been performed "but for the actions, or lack thereof of the adversarial party, is referred to as the method Standard Industrial classification (SIC) Before and after Benchmark Cakulating lost profits QUESTION 3 The fraud examiner can have no opinion about the The accounting choices made by the client if they are GAAP compliant The accuracy of prior financial statements unless he/she was involved in the audit Guilt or Innocence of alleged fraudsters The conditions or causes within an organization that created the opportunity for fraud QUESTION 4 does a reasonably good job of identifying the company's assets and liabilitles The asset valuation model starts with the assumption that the organization's Management audit disclosure notes OPEL Earnings management strategy Balance sheet

Answer 1

Question 1 : The correct answer is "B" : Projecting; into the future

Question 2 : The correct answer is "B" : Before and after method

Reason : Before and after method is probably the most reliable method for proving lost profits as damages. In this method a parameter such as net income is selected for a time period which is lost due to the conduct complained against and subtracted by any costs that would have been incurred to earn that net income.

Question 3 : The correct answer is "C" : Guilt or innocence of alleged fraudsters

Question 4 : The correct answer is "D" : Balance sheet