Forensic Accounting · Topic 4

Reconstructing Incomplete Financial Records Quiz

Work through 25 multiple-choice questions, one at a time. Submit each answer for feedback. At the end, review your score and see which concepts to revisit.

Review the Q&AForensic Accounting quiz path
1. A retailer has lost its sales ledger but kept payment processor records. Which concept best fits the case?
2. A closing inventory quantity is known and movement records survive. Which concept best fits the case?
3. The same supplier invoice appears in email and a scanned folder. Which concept best fits the case?
4. Bank statements show transfers between two accounts owned by the business. Which concept best fits the case?
5. Several months lack source documents and amounts must be estimated. Which concept best fits the case?
6. A retailer has lost its sales ledger but kept payment processor records. What is the most appropriate next step?
7. A closing inventory quantity is known and movement records survive. What is the most appropriate next step?
8. The same supplier invoice appears in email and a scanned folder. What is the most appropriate next step?
9. Bank statements show transfers between two accounts owned by the business. What is the most appropriate next step?
10. Several months lack source documents and amounts must be estimated. What is the most appropriate next step?
11. A retailer has lost its sales ledger but kept payment processor records. Which evidence would be most directly useful?
12. A closing inventory quantity is known and movement records survive. Which evidence would be most directly useful?
13. The same supplier invoice appears in email and a scanned folder. Which evidence would be most directly useful?
14. Bank statements show transfers between two accounts owned by the business. Which evidence would be most directly useful?
15. Several months lack source documents and amounts must be estimated. Which evidence would be most directly useful?
16. A retailer has lost its sales ledger but kept payment processor records. Which conclusion is best supported?
17. A closing inventory quantity is known and movement records survive. Which conclusion is best supported?
18. The same supplier invoice appears in email and a scanned folder. Which conclusion is best supported?
19. Bank statements show transfers between two accounts owned by the business. Which conclusion is best supported?
20. Several months lack source documents and amounts must be estimated. Which conclusion is best supported?
21. A retailer has lost its sales ledger but kept payment processor records. Which shortcut would most directly undermine the work in this case?
22. A closing inventory quantity is known and movement records survive. Which shortcut would most directly undermine the work in this case?
23. The same supplier invoice appears in email and a scanned folder. Which shortcut would most directly undermine the work in this case?
24. Bank statements show transfers between two accounts owned by the business. Which shortcut would most directly undermine the work in this case?
25. Several months lack source documents and amounts must be estimated. Which shortcut would most directly undermine the work in this case?
Show the answer key
  1. Independent-source reconstruction Net deposits can differ from gross collections through fees and refunds.
  2. Inventory roll-back or roll-forward Stock flows link the known count to the missing balance.
  3. Duplicate identification Multiple copies may represent one transaction.
  4. Interaccount transfer reconciliation Internal transfers should not be counted as external income.
  5. Estimation uncertainty A reported range may better reflect unresolved gaps.
  6. Reconcile gross card collections to bank settlements after adjustments Net deposits can differ from gross collections through fees and refunds.
  7. Reconstruct the missing balance using supported receipts and issues Stock flows link the known count to the missing balance.
  8. Match identifiers before adding records to the reconstructed ledger Multiple copies may represent one transaction.
  9. Match debits and credits across counterpart accounts Internal transfers should not be counted as external income.
  10. Separate observed figures from estimates and state assumptions A reported range may better reflect unresolved gaps.
  11. Processor transaction and settlement files Reconcile gross card collections to bank settlements after adjustments.
  12. Count sheets, receipts and dispatch quantities Reconstruct the missing balance using supported receipts and issues.
  13. Supplier, invoice number, amount and document versions Match identifiers before adding records to the reconstructed ledger.
  14. Both bank statements and transfer references Match debits and credits across counterpart accounts.
  15. Source-coverage log and sensitivity calculations Separate observed figures from estimates and state assumptions.
  16. Net deposits can differ from gross collections through fees and refunds Processor transaction and settlement files would help support that assessment.
  17. Stock flows link the known count to the missing balance Count sheets, receipts and dispatch quantities would help support that assessment.
  18. Multiple copies may represent one transaction Supplier, invoice number, amount and document versions would help support that assessment.
  19. Internal transfers should not be counted as external income Both bank statements and transfer references would help support that assessment.
  20. A reported range may better reflect unresolved gaps Source-coverage log and sensitivity calculations would help support that assessment.
  21. Recording net card settlements as complete sales revenue Net deposits can differ from gross collections through fees and refunds.
  22. Changing the opening quantity to force a desired margin Stock flows link the known count to the missing balance.
  23. Posting every surviving image as a different invoice Multiple copies may represent one transaction.
  24. Adding incoming transfers to reconstructed revenue Internal transfers should not be counted as external income.
  25. Presenting inferred amounts as identical to verified amounts A reported range may better reflect unresolved gaps.

These hypothetical cases use general forensic accounting principles. For real engagements, check the rules and standards that apply in your jurisdiction. AICPA Statement on Standards for Forensic Services