Forensic Accounting

Category - Specialized Forensic Knowledge

Which of the following is NOT true?
  1. Ex ante and ex post analyses are both applied in the calculation of damages
  2. Ex post is preferred in cases that apply the book of wisdom
  3. Only ex ante or ex post can be applied exclusively in a case
  4. Ex ante and ex post can be applied simultaneously
Explanation
Answer: C - It is incorrect to state that only ex ante or ex post can be applied exclusively in a case. Ex ante and ex post are integral to the calculation of damages. Also, ex post is often the preferred method in cases that apply the ‘book of wisdom.’ Both ex ante and ex post methods can be applied simultaneously. A classic example is the hybrid approach, which applies both methods.
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