Which of the Following Is a Difference Between a Forensic

question 27

Multiple Choice

Which of the following is a difference between a forensic accountant and an accountant or auditor?

• A) A forensic accountant works with complete information, whereas an accountant or auditor works with incomplete information.
• B) A forensic accountant commonly works backward, whereas an accountant or auditor typically works forward.
• C) A forensic accountant works with financial ratios, whereas an accountant or auditor works with internal reports.
• D) A forensic accountant uses professional skepticism while conducting the analysis, whereas an accountant or auditor has a more open mindset.

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Definitions:

Balanced Scorecard

A strategic planning and management system used to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals.

Overhead Volume Variance

A measure of the difference between the estimated and actual overhead costs, due to changes in production volume.

Controllable Costs

Expenses that a manager or business can influence or regulate, such as marketing costs or raw material purchases.

Fixed Costs

Business expenses that remain constant regardless of production volume, such as rent or salaries.