Accounting Q&A · Forensic Accounting · Topic 8
Practise 25 forensic accounting questions on due diligence, transaction monitoring and escalation using five fictional investigation cases. Try each question before revealing the answer. Legal and reporting duties depend on the jurisdiction and engagement.
Payments exceed the activity expected for an account
1. What should the examiner establish?
Assess the discrepancy using risk-based procedures.
2. Which records should the examiner obtain?
Obtain available profile, transaction and counterparty information.
3. What procedure would test the issue?
Compare activity with documented business purpose.
4. What alternative explanation or limitation matters?
Unusual activity alone does not prove a crime.
5. What should happen next?
Escalate to authorised personnel under applicable policy.
A company’s ownership passes through several entities
6. What should the examiner establish?
Identify the natural persons who ultimately own or control it under applicable rules.
7. Which records should the examiner obtain?
Collect corporate registers and reliable verification records.
8. What procedure would test the issue?
Trace ownership and control through each layer.
9. What alternative explanation or limitation matters?
Registered shareholders can differ from beneficial owners.
10. What should happen next?
Resolve gaps or escalate under due diligence procedures.
A screening system flags a name match
11. What should the examiner establish?
Determine whether the alert refers to the same person.
12. Which records should the examiner obtain?
Compare lawful identifiers such as birth date and country.
13. What procedure would test the issue?
Review match quality against authoritative records.
14. What alternative explanation or limitation matters?
Similar names can produce false positives.
15. What should happen next?
Record the basis and escalate unresolved matches.
A transaction monitoring team receives repeated alerts
16. What should the examiner establish?
Assess whether the pattern indicates heightened risk.
17. Which records should the examiner obtain?
Gather transaction histories and prior review outcomes.
18. What procedure would test the issue?
Compare connected activity and documented explanations.
19. What alternative explanation or limitation matters?
Thresholds and reporting duties vary by jurisdiction.
20. What should happen next?
Follow local reporting requirements and confidentiality controls.
An investigator considers contacting the customer after escalation
21. What should the examiner establish?
Avoid unauthorised disclosure of a sensitive investigation.
22. Which records should the examiner obtain?
Review reporting and confidentiality rules with authorised staff.
23. What procedure would test the issue?
Check who may communicate and what can be said.
24. What alternative explanation or limitation matters?
Tipping-off restrictions can apply.
25. What should happen next?
Follow approved escalation and communications procedures.