Which of the Following Statements About Hiring Accounting or Fraud

question 49

Multiple Choice

Which of the following statements about hiring accounting or fraud professionals in bankruptcy proceedings is NOT correct?

• A)If the trustee wants to employ attorneys, accountants, or other professionals to represent or assist the trustee, the trustee has to get the court's approval.
• B)All the professionals must be employed under Code section 327.
• C)The retention of a fraud examiner or investigator in a bankruptcy proceeding is up to the discretion of the trustee.
• D)A creditor may engage the services of a professional to investigate allegations of bankruptcy fraud independently from the court.In this case, the creditor usually compensates the professional directly.

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Definitions:

Third-Party Check

A check that is written by one person or entity to another but is then given to a third party to be cashed or deposited.

Unknown Party

An individual or entity whose identity is not known or cannot be confirmed.

Written Contracts

Legally binding agreements captured in writing that specify the duties, rights, and obligations of each party.

Date Due

The specified day by which an obligation must be fulfilled or a payment must be made.