Practice Quiz

Forensic Accounting

Category - Fundamental Forensic Knowledge

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What is a golden parachute?
  1. Payment to employees upon retirement
  2. Technique used to gather and preserve information
  3. Law that prohibits practitioners from sharing sensitive information
  4. Payment to executives in case of merger or takeovers
Explanation
Answer: D - A golden parachute is a payment made to executives if terminated as a result of a corporate merger or takeover. When gathering information, particularly financial information, it is imperative to be aware of instances relating to a golden parachute. It provides an idea about the financial compensation given to a particular executive, which in turn can be handy during the scrutiny process. This is because the financial information trail can then be located easily.
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