CrFA Client Relations 4

Question 1

Under SSFS No. 1, which of these must a CPA NOT do when serving as an expert witness?

Accepted Answer

Give an opinion under a contingent fee arrangement

Answer

SSFS No. 1 bars expert opinions given under contingent fee arrangements, except as the AICPA Code allows.

Question 2

In a fraud investigation hired by a company's audit committee, who is generally considered the client?

Accepted Answer

The audit committee or company acting through it

Answer

Whoever engages the investigator, here the audit committee for the company, is the client the investigator reports to.

Question 3

A client wants a forensic report delivered before analysis can reasonably be finished. What is the best response?

Accepted Answer

Explain the limitations and offer a scoped preliminary or oral update instead

Answer

Opinions need sufficient relevant data, so clearly labeled interim communication beats an unsupported final report.

Question 4

Which practice best preserves confidentiality of client information in a forensic engagement?

Accepted Answer

Using secure, access-restricted storage and limiting disclosure to authorized parties

Answer

Restricting access and using secure storage protects confidential client data as AICPA Rule 1.700 requires.

Question 5

What should a practitioner do if they discover partway through an engagement that they lack the competence for a specialized area?

Accepted Answer

Tell the client and consult or bring in qualified specialists, or withdraw

Answer

Professional competence standards require getting the needed expertise or declining the work.

CrFA - Certified Forensic Accountant Practice Test