Accounting Q&A · Forensic Accounting · Topic 11
Practise 25 forensic accounting questions on engagement management, findings and reporting using five fictional investigation cases. Try each question before revealing the answer. Legal and reporting duties depend on the jurisdiction and engagement.
A client wants to add unrelated allegations mid-engagement
1. What should the examiner establish?
Decide whether the added work is authorised and appropriate.
2. Which records should the examiner obtain?
Review engagement terms, resources and conflicts.
3. What procedure would test the issue?
Document scope changes and approvals before expanding work.
4. What alternative explanation or limitation matters?
Informal requests can create misunderstandings about fees or purpose.
5. What should happen next?
Agree a revised scope or explain why it cannot be accepted.
A report describes a suspected payment as confirmed fraud
6. What should the examiner establish?
Separate substantiated facts from inference and legal conclusions.
7. Which records should the examiner obtain?
Review evidence and the applicable professional obligations.
8. What procedure would test the issue?
Replace unsupported conclusions with evidence-based findings.
9. What alternative explanation or limitation matters?
An unexplained transaction does not establish intent.
10. What should happen next?
State what was tested and what remains unresolved.
A reader cannot reproduce a loss figure
11. What should the examiner establish?
Make the calculation transparent and traceable.
12. Which records should the examiner obtain?
Link inputs to schedules, sources and versions.
13. What procedure would test the issue?
Reperform the calculation and check units and dates.
14. What alternative explanation or limitation matters?
A correct total is hard to evaluate without its basis.
15. What should happen next?
Add supporting schedules and assumptions.
A draft report contains unnecessary personal details
16. What should the examiner establish?
Protect confidentiality while preserving relevant evidence.
17. Which records should the examiner obtain?
Review the intended audience and disclosure authority.
18. What procedure would test the issue?
Limit or redact irrelevant details where appropriate.
19. What alternative explanation or limitation matters?
Keep underlying evidence according to applicable retention rules.
20. What should happen next?
Use approved distribution and document access.
The review team disagrees about an inference
21. What should the examiner establish?
Resolve the disagreement using documented evidence and review.
22. Which records should the examiner obtain?
Record competing explanations and supporting sources.
23. What procedure would test the issue?
Test whether each explanation fits the available records.
24. What alternative explanation or limitation matters?
Uncertainty may remain after reasonable work.
25. What should happen next?
Disclose material limitations and obtain sign-off.