2.1 TrueFalse Questions

1 Copyright © 2015 Pearson Education, Inc.Forensic Accounting (Rufus) Chapter 2 The Legal Environment of Forensic Accounting

2.1 True/False Questions

1) In criminal cases, sanctions generally involve compensation for loss or wrongs suffered.

Answer: FALSE

Explanation: In civil cases, sanctions generally involve compensation for loss or wrongs suffered (for example, economic damages).

Diff: 1

LO: 2-1

AACSB: Analytical Thinking

2) Personal justice is justice concerned with the private affairs of citizens and their respective rights.

Answer: FALSE

Explanation: Justice concerned with the private affairs of citizens and their respective rights is known as civil justice.

Diff: 1

LO: 2-1

AACSB: Analytical Thinking

3) Tax evasion, health care frauds, and bank frauds are covered under civil laws.

Answer: FALSE

Explanation: Tax evasion, health care frauds, and bank frauds are covered under criminal laws.

Diff: 1

LO: 2-2

AACSB: Analytical Thinking

4) In the case of a jury trial, the trial stage begins with the selection of a jury.

Answer: TRUE

Explanation: The trial stage begins with the selection of a jury.

Diff: 1

LO: 2-2

AACSB: Analytical Thinking

5) The burden of proof is the obligation of the defendant to prove his or her innocence.

Answer: FALSE

Explanation: The burden of proof is the obligation of the plaintiff or prosecution to prove liability (in a civil case) or guilt (in a criminal case). The defendant is not required to prove his or her innocence-it is presumed.

Diff: 1

LO: 2-3

AACSB: Analytical Thinking

Forensic Accounting 1st Edition Rufus Test Bank Visit TestBankDeal.com to get complete for all chapters

2 Copyright © 2015 Pearson Education, Inc.6) Mediation is a "mini trial" wherein each party presents its case to one or more mediators, who render a binding decision that generally cannot be appealed.

Answer: FALSE

Explanation: Mediation is a non-binding informal process wherein a mediator (mutually selected by the parties) evaluates the arguments of both sides and helps the parties reach common ground.

Diff: 1

LO: 2-3

AACSB: Analytical Thinking

7) An expert's testimony is more credible than that of other witnesses.

Answer: TRUE

Explanation: A higher level of credibility is generally attached to an expert's testimony.

Diff: 1

LO: 2-4

AACSB: Analytical Thinking

8) The trial judge is challenged to carefully qualify the expert but not the testimony of the expert.

Answer: FALSE

Explanation: The trial judge is challenged to carefully qualify both the expert and his or her testimony.

Diff: 1

LO: 2-4

AACSB: Analytical Thinking

9) A Daubert hearing decides whether the expert is correct.

Answer: FALSE

Explanation: As provided in Daubert, the "court must focus on the methodology, not on the conclusions generated by the methodology." In other words, a Daubert hearing is not to decide whether the expert is correct.

Diff: 1

LO: 2-6

AACSB: Analytical Thinking

10) Rule 705 allows an expert to state an opinion without first testifying to the underlying facts or data.

Answer: TRUE

Explanation: Rule 705 allows an expert to state an opinion without first testifying to the underlying facts or data.

Diff: 1

LO: 2-5

AACSB: Analytical Thinking

3 Copyright © 2015 Pearson Education, Inc.

2.2 Multiple-Choice Questions

1) Which of the following is an example of sanctions in civil cases?

• capital punishment
• home confinement
• probation
• compensation for economic damages

Answer: D

Explanation: D) In civil cases, sanctions generally involve compensation for loss or wrongs suffered (for example, economic damages).

Diff: 1

LO: 2-1

AACSB: Analytical Thinking

2) Which of the following best describes civil justice?

• justice between parties to a dispute, regardless of any larger principles that might be involved
• justice concerned with the private affairs of citizens and their respective rights
• justice fairly administered according to the rules of substantive law (such as a fair trial)
• justice that conforms to a moral principle

Answer: B

Explanation: B) Justice concerned with the private affairs of citizens and their respective rights, including certain freedoms of speech and action and equal treatment, protection, and opportunities regardless of race, sex, or religion is known as civil justice.

Diff: 1

LO: 2-1

AACSB: Analytical Thinking

3) Which of the following forms of justice is fairly administered according to the rules of statutory law?

• social justice
• civil justice
• substantial justice
• criminal justice

Answer: C

Explanation: C) Substantial justice is justice fairly administered according to the rules of substantive law (such as a fair trial).

Diff: 2

LO: 2-1

AACSB: Analytical Thinking

4 Copyright © 2015 Pearson Education, Inc.4) Which of the following scenarios, if identified, can result in a mistrial?

• Ginny, one of the jury, avidly followed the polls conducted by the media to know the people's

opinion on the trial.

• Derek, the defense attorney, concealed his client's drinking habit as he felt it would be

prejudicial to the client in the ongoing case of banking fraud.

• Silvia, the attorney for the prosecution, raised an objection for every evidence presented by

the defense attorney.

• Rico, an expert witness, stated an opinion on the evidence without first testifying to the

underlying facts.

Answer: A

Explanation: A) Verdicts are (or are expected to be) decided based on the evidence presented during the trial. Consideration of outside information, which has not been subjected to challenge, violates the rules of evidence. If identified, such violations can result in removal of the juror/s, mistrials, or appeals.

Diff: 2

LO: 2-1

AACSB: Analytical Thinking

5) Igor, a wealthy entrepreneur, was involved in embezzlement of cash from the office and tax evasion. If discovered, which of the following will he be charged under?

• criminal law
• constitutional law
• administrative law
• civil law

Answer: A

Explanation: A) Embezzlement cases are covered under criminal law.

Diff: 1

LO: 2-2

AACSB: Analytical Thinking

6) Which of the following is true of our justice system?

• The law is fast; litigation lasts for one or two hours.
• Trials (aside from the verdict) provide a lot of drama.
• Closing arguments and cross examination are the most important parts of a trial.
• The role of the jury is not passive.

Answer: D

Explanation: D) Jury selection and opening statements are the most important parts of a trial.The role of the jury is not passive. Because jurors serve as the trier of fact, they must actively evaluate the evidence and decide who and what to believe.

Diff: 1

LO: 2-2

AACSB: Analytical Thinking