Accounting Q&A · Forensic Accounting · Topic 1
Practise 25 forensic accounting questions on scope, evidence and testing allegations using five fictional investigation cases. Try each question before revealing the answer. Legal and reporting duties depend on the jurisdiction and engagement.
An anonymous tip alleges duplicate vendor payments
1. What should the examiner establish?
Define a scope covering the named vendor, period and payment process.
2. Which records should the examiner obtain?
Preserve the tip, invoices, approvals and bank records.
3. What procedure would test the issue?
Match invoice identifiers and compare actual bank settlements.
4. What alternative explanation or limitation matters?
A duplicate invoice record is not proof of a second payment.
5. What should happen next?
Separate confirmed payments from unresolved allegations.
A director requests a review of missing inventory
6. What should the examiner establish?
Identify when and where recorded quantities diverged from counts.
7. Which records should the examiner obtain?
Secure count sheets, adjustment logs and dispatch records.
8. What procedure would test the issue?
Reconcile opening quantities plus receipts less issues to closing quantities.
9. What alternative explanation or limitation matters?
Shrinkage may reflect errors, damage or theft.
10. What should happen next?
Report the unexplained difference and evidence limits.
An employee disputes an expense reimbursement finding
11. What should the examiner establish?
Determine whether the claim met the policy in force.
12. Which records should the examiner obtain?
Collect the claim, receipts and policy version.
13. What procedure would test the issue?
Compare dates, amounts and the business purpose with independent records.
14. What alternative explanation or limitation matters?
An incomplete receipt may have an innocent explanation.
15. What should happen next?
Invite a response and record any corroborating evidence.
A client asks for a conclusion before records arrive
16. What should the examiner establish?
Define the question and deadline in the engagement terms.
17. Which records should the examiner obtain?
List unavailable records and preserve what was received.
18. What procedure would test the issue?
Test alternative sources such as counterparties or bank records.
19. What alternative explanation or limitation matters?
Missing evidence limits the strength of any conclusion.
20. What should happen next?
State what remains unresolved and why.
A payment went to a bank account shared by two suppliers
21. What should the examiner establish?
Determine whether the relationship is authorised.
22. Which records should the examiner obtain?
Capture supplier master history and payment approvals.
23. What procedure would test the issue?
Verify account details using a trusted independent contact.
24. What alternative explanation or limitation matters?
A shared account can belong to an authorised collection agent.
25. What should happen next?
Escalate confirmed discrepancies without treating suspicion as proof.