Topic · 3 questions
Following funds, investigating irregularities and what records are needed.
Often, yes, if records exist. A forensic accountant traces funds through bank statements and transaction documents, and looks for patterns such as unexplained transfers, cash withdrawals or lifestyle spending that income does not support. Where the trail breaks, the report identifies the gap and which records could close it.
Read the full answerStart with complete bank statements for every account the money may have passed through, for the whole period in question. Add loan, property and share transaction documents, and the general ledger where one exists. Missing statements are the most common reason a trace stops.
Read the full answerAn auditor gives an opinion on whether financial statements are fairly presented, using sampling and materiality. A forensic accountant answers a specific question, such as where money went or what a loss is worth, and examines the transactions that matter in detail, often for a dispute or investigation.
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