Accounting Q&A · Forensic Accounting · Topic 4
Practise 25 forensic accounting questions on bank reconciliations and reconstruction using five fictional investigation cases. Try each question before revealing the answer. Legal and reporting duties depend on the jurisdiction and engagement.
Bank records show opening cash 2,000, deposits 14,000 and payments 11,500
1. What should the examiner establish?
Reconstruct closing cash of 4,500 before other adjustments.
2. Which records should the examiner obtain?
Obtain bank statements and ledger opening balances.
3. What procedure would test the issue?
Recalculate the movement and compare it with the statement closing balance.
4. What alternative explanation or limitation matters?
Bank records may omit cash on hand and transactions in transit.
5. What should happen next?
Reconcile separate cash holdings and timing items.
An invoice register is missing for March
6. What should the examiner establish?
Rebuild sales from independent sources.
7. Which records should the examiner obtain?
Gather dispatch logs, customer statements and receipts.
8. What procedure would test the issue?
Match order identifiers and distinguish receipts from sales.
9. What alternative explanation or limitation matters?
Collections may relate to earlier invoices.
10. What should happen next?
Mark unmatched transactions and request customer evidence.
Supplier records show unpaid invoices absent from the ledger
11. What should the examiner establish?
Reconstruct outstanding obligations.
12. Which records should the examiner obtain?
Obtain supplier statements, receiving logs and subsequent payments.
13. What procedure would test the issue?
Match each invoice to receipt and reporting period.
14. What alternative explanation or limitation matters?
Duplicate statements can repeat old balances.
15. What should happen next?
Build a payable schedule and document uncertain items.
A stock count exists but opening records are missing
16. What should the examiner establish?
Estimate opening units from later movements.
17. Which records should the examiner obtain?
Gather count sheets, purchases, issues and returns.
18. What procedure would test the issue?
Reverse documented movements from the count date.
19. What alternative explanation or limitation matters?
Unrecorded losses prevent an exact reconstruction.
20. What should happen next?
Disclose assumptions and test plausible ranges.
Two reconstructed schedules use inconsistent dates
21. What should the examiner establish?
Align both schedules to one reporting cut-off.
22. Which records should the examiner obtain?
Collect original timestamps and adjustment histories.
23. What procedure would test the issue?
Reconcile each difference to its event and posting dates.
24. What alternative explanation or limitation matters?
Posting date may differ from the underlying event.
25. What should happen next?
Retain both versions and document the date convention.