Accounting Q&A · Forensic Accounting · Topic 7
Practise 25 forensic accounting questions on expert scope, methods and testimony using five fictional investigation cases. Try each question before revealing the answer. Legal and reporting duties depend on the jurisdiction and engagement.
A lawyer asks the expert to endorse a loss figure without reviewing inputs
1. What should the examiner establish?
Define an independent opinion based on sufficient evidence.
2. Which records should the examiner obtain?
Obtain the instructions, calculation and underlying records.
3. What procedure would test the issue?
Reperform the calculation and test significant assumptions.
4. What alternative explanation or limitation matters?
Counsel’s preferred outcome does not establish the amount.
5. What should happen next?
Explain supported conclusions and any limitations.
Opposing counsel asks whether a forecast is certain
6. What should the examiner establish?
Explain the forecast’s assumptions and uncertainty.
7. Which records should the examiner obtain?
Refer to the source data and sensitivity schedule.
8. What procedure would test the issue?
Show how plausible input changes affect the result.
9. What alternative explanation or limitation matters?
A point estimate can imply unwarranted precision.
10. What should happen next?
Answer directly and distinguish evidence from assumptions.
A new bank statement arrives after the report is issued
11. What should the examiner establish?
Assess whether the evidence affects the opinion.
12. Which records should the examiner obtain?
Preserve the statement and prior report version.
13. What procedure would test the issue?
Reconcile the new amounts and identify affected conclusions.
14. What alternative explanation or limitation matters?
Procedural requirements for supplemental reports vary.
15. What should happen next?
Notify the appropriate parties and follow the applicable procedure.
An expert is asked to interpret a disputed legal clause
16. What should the examiner establish?
Stay within the authorised financial expertise.
17. Which records should the examiner obtain?
Obtain written instructions and any legal assumptions.
18. What procedure would test the issue?
Present calculations under alternative assumptions if appropriate.
19. What alternative explanation or limitation matters?
The legal interpretation may be reserved for the tribunal.
20. What should happen next?
Identify assumptions explicitly and avoid deciding the legal issue.
A hearing exhibit uses a summary of thousands of entries
21. What should the examiner establish?
Make the summary traceable to underlying evidence.
22. Which records should the examiner obtain?
Retain the complete source population and reconciliation.
23. What procedure would test the issue?
Recalculate totals and test the selection rules.
24. What alternative explanation or limitation matters?
An exhibit can omit material exceptions if filters are wrong.
25. What should happen next?
Disclose the method and provide source references.