Accounting Q&A · Forensic Accounting · Topic 6
Practise 25 forensic accounting questions on loss measurement and dispute analysis using five fictional investigation cases. Try each question before revealing the answer. Legal and reporting duties depend on the jurisdiction and engagement.
A shop claims interruption losses after a flood
1. What should the examiner establish?
Estimate the loss under the relevant policy wording.
2. Which records should the examiner obtain?
Collect sales history, closure dates and claim terms.
3. What procedure would test the issue?
Compare expected and actual results and account for saved expenses.
4. What alternative explanation or limitation matters?
Seasonality can make last month a poor baseline.
5. What should happen next?
Show assumptions and sensitivity to alternative baselines.
A supplier breach allegedly reduced profit
6. What should the examiner establish?
Isolate the financial effect of the alleged event.
7. Which records should the examiner obtain?
Obtain contracts, sales data and mitigation records.
8. What procedure would test the issue?
Build a supported comparison with what likely would have occurred.
9. What alternative explanation or limitation matters?
Other causes may account for part of the decline.
10. What should happen next?
Report alternative explanations and quantified ranges.
A claimant lists 10,000 replacement cost and 2,000 salvage
11. What should the examiner establish?
Calculate 8,000 net before policy terms and other adjustments.
12. Which records should the examiner obtain?
Retain replacement quotations and salvage evidence.
13. What procedure would test the issue?
Check that both figures relate to the same assets.
14. What alternative explanation or limitation matters?
Deductibles, coverage and valuation provisions may change the claim.
15. What should happen next?
Reconcile the schedule to source documents.
Parties disagree about the amount paid under a contract
16. What should the examiner establish?
Trace actual payments to invoices and bank records.
17. Which records should the examiner obtain?
Collect contracts, invoices, credits and statements.
18. What procedure would test the issue?
Reconcile payment allocations and identify disputed items.
19. What alternative explanation or limitation matters?
The contract may treat deposits separately.
20. What should happen next?
Present an agreed and disputed balance schedule.
A mediator requests a concise financial summary
21. What should the examiner establish?
Explain the calculation and assumptions neutrally.
22. Which records should the examiner obtain?
Use verified records and clearly identify party-provided estimates.
23. What procedure would test the issue?
Show how each assumption changes the result.
24. What alternative explanation or limitation matters?
A settlement proposal may differ from estimated financial loss.
25. What should happen next?
Provide a transparent schedule with limitations.