CRFA Cheat Sheet 2026

The 30 highest-yield CRFA facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. A forensic accountant discovers that journal entries were systematically posted at 2:00 a.m. by a generic user account. This finding most likely indicates: → Possible unauthorized or fraudulent entries made to avoid detection
2. In the fraud triangle, a CFO facing personal bankruptcy most directly represents which element? → Pressure
3. What is the civil fraud penalty under IRC Section 6663 as a percentage of the underpayment attributable to fraud? → 75%
4. What should an expert witness report include? → Clear findings, supporting evidence & methodology
5. Why must expert witnesses remain impartial? → To comply with professional ethics and court credibility
6. A client's attorney asks the forensic accountant to leave a relevant adverse document out of the files reviewed. What is the appropriate action? → Decline to ignore relevant evidence and consider it in the analysis
7. What fiduciary duty applies to estate planning? → Act in the client's best interest with loyalty, care, and full disclosure
8. Which of the following is a key component of risk assessment? → Identification of potential threats
9. A royalty rate in an intellectual property damages analysis is most often determined using: → The Georgia-Pacific factors
10. Under OFAC's 50 Percent Rule, which entity is considered blocked even though it does not appear on the SDN list? → An entity owned 50% or more, in aggregate, by one or more blocked persons
11. During a deposition, opposing counsel asks a question the expert does not fully understand. What is the best response? → Ask counsel to clarify or rephrase the question
12. How should conflicts of interest be managed in client relations? → Identify, disclose, and mitigate all actual and potential conflicts of interest
13. SOX Section 906 imposes which maximum criminal penalty on an officer who willfully certifies a periodic report knowing it does not comply with requirements? → Fine of up to $5 million and imprisonment of up to 20 years
14. What is the primary purpose of internal controls? → To ensure accuracy & prevent fraud
15. The practice of breaking large amounts of cash into smaller deposits to avoid CTR reporting thresholds is known as: → Smurfing (structuring)
16. A former client's confidential data would help a new client in an unrelated matter. What should the forensic accountant do? → Not use or disclose it without the former client's consent or a legal requirement
17. When can an expert witness be disqualified from testifying? → When they lack field-specific credentials
18. Which of the following is NOT one of the factors a court considers under the Daubert standard when evaluating expert testimony? → The hourly rate charged by the expert
19. In a wrongful termination damages calculation, the mitigation period ends when: → The plaintiff finds comparable replacement employment
20. In a fraud investigation hired by a company's audit committee, who is generally considered the client? → The audit committee or company acting through it
21. What regulatory compliance requirement applies to risk assessment? → Full compliance with all applicable federal, state, and industry regulations
22. Taxpayers participating in an IRS 'listed transaction' must disclose it on which form? → Form 8886
23. How should risk be assessed in tax strategies? → Evaluate risk tolerance, capacity, time horizon, and investment objectives systematically
24. What fiduciary duty applies to risk assessment? → Act in the client's best interest with loyalty, care, and full disclosure
25. Which doctrine collapses a series of formally separate steps into a single transaction for tax purposes? → Step transaction doctrine
26. What continuing education requirement supports portfolio management competence? → Ongoing education in regulatory changes, market developments, and best practices
27. What fiduciary duty applies to tax strategies? → Act in the client's best interest with loyalty, care, and full disclosure
28. What is the primary goal of a forensic accountant in a fraud investigation? → To detect, investigate, and report financial fraud
29. How should risk be assessed in investment analysis? → Evaluate risk tolerance, capacity, time horizon, and investment objectives systematically
30. What fiduciary duty applies to investment analysis? → Act in the client's best interest with loyalty, care, and full disclosure