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26 Cards in this Set
- Front
- Back
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anti trust laws |
regulate trade and commerce by making it illegal for businesses to compete in unfair ways -created to prohibit the formation and continuation of monopolies except when in the best interest of the public |
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role of accountants in anti trust litigation |
whether the defendant has engaged in predatory pricing -after liability is proved in an anti trust case, then the forensic accountant will be asked to estimate damages |
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predatory pricing |
determine whether a company prices its products or service below average variable cost and if so,predatory pricing is present |
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cost behavior estimation methods |
experience-working knowledge of a firm's accounting system will provide some knowledge of the nature of cost behavior in the firm;s accounting system, |
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account analysis |
involves use of judgement to classify each general ledger account as fixed variable or mixed -subjective method of estimating cost behavior |
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scatter plot |
historical data to estimate cost behavior cost data is plotted against volume data |
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high-low method |
the highest and lowest costs are identifies along with their related volume levels variable cost = change in cost / change in units |
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fixed cost = cost - (units * variable cost) |
total cost = fixed cost+ variable cost * numbers of units |
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regression/correlation analysis |
most powerful method for estimating cost is regression analysis -regression measures the nature of the association between the variables i.e. does a change in one variable cause a change in the second variable -correlation measures the strength of the association between the variables i.e. is there a relationship? |
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r square |
coefficient of determination strong relationship between cost and volume of activity allows for predication of accurate costs using the cost function equation relationship > .8 is reliable <.5 not reliable |
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standard error of the estimate |
indicates the variability of the data in the regression calculations. the greater the variability of the data, the less precision that result from estimates made from the regression data. |
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association vs causation |
correlation analysis shows the degree of association between variables, but it does not prove causation |
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federal false claims act |
passed to protect the government from the unscrupulous acts of a few government contractors that intentionally or carelessly overcharge the government for goods or services -filed on behalf of the US Government -the US dept of justice evaluates the claims and decides whether to intervene in the case |
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Under the federal false claims act, no proof of intent to defraud is required. A person knowingly with respect to information if the person has: |
-actual knowledge of information -acts in deliberate ignorance of the truth or falsity of the information -acts in reckless disregard of the truth or falsity of the information "preponderance of the evidence" (lower hurdle than beyond reasonable doubt) |
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intellectual property |
includes copyrights, patents, trademarks, trade secrets, business processes and other intangible rights that are conveyed to owners via laws and regulations |
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enforcing intellectual property rights |
unlike tangible assets, intellectual property may be taken and used without the owner even knowing about it for some time -like damages in tangible assets, intellectual property damages may include lost sales and lost profits -in addition, there may be other damages such as loss of reputation, lost company value and lost customers |
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common issues in proving or defending patent infringement |
-the Georgia-pacific factors: these are 15 factors that the court considered in measuring damages in the georgia-pacific patent infringement case -these rules have been widely adopted in many other similar patent infringement cases by courts -the 25% rule: used by the courts to assess damages in patent infringement cases, but federal courts are no longer using this rule in cases |
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common issues in proving or defending patent infringement |
-cost of next best alternative refers to the application of opportunity cost to measure damages in a patent infringement case -running royalty v upfront payments refers to the need to evaluate the total royalty package in assessing damages |
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common issues in proving or defending patent infringement |
-cost of designing around: its legal to design around a patent, in doing so the new inventor must be careful not to infringe on any part of the patent or other intellectual property item covered by the patent |
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common issues in proving or defending patent infringement |
anti trust issues- patent laws and other intellectual property laws and regulations are designed to provide a limited "monopoly" to those holding the rights to patents, copyrights, trademarks, etc. |
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why is it difficult to enact cybercrime |
-technologies continually changing -no clear definitions of terms -for international laws, the trans-border access to computer data and differences in laws has made it nearly impossible |
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why is there need for international cyber laws? |
-theft or destruction of proprietary data -forgery of financial documents -theft of money from bank accounts -unlawful use of computer/information resources |
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considerations in estimating loss |
1. losses of responding 2. conducting a damage assessment 3. restoring the system to its previous condition 4. loss of revenue or costs incurred due to the interruption |
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USA Patriot Act of 2001 |
the USA Patriot Act has strengthened U.S. cyber laws and expanded cybercrime definitions -amendment of interest to forensics accountants and fraud examiners -sec 212 emergency disclosures by communications providers and the 2002 enactment the cyber security enhancement act -allows ISPs to disclose information if...there is a need to protect their rights and property, they believe a serious crime is involved, information is requested by a forensic investigator |
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KSAs for fighting cybercrime |
-ability to build an internet audit trail -skills needed to collect "usable" courtroom electronic evidence -knowledge base to use in recommending or reviewing Internet security policies -ability to place a valuation on any incurred losses from attacks -technical familiarity with the internet, web servers, firewalls, and general attack methodologies |
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critical infrastructures |
systems that would cause catastrophic impact if they were comprimised or shut down |
