Overview of Forensic Accounting – Questions and Answers

Subject Title: Auditing and Assurance Revision Kit

Topic: Overview of Forensic Accounting

QUESTION 1
December 2022 Question Two B
Describe FOUR characteristics of financial statement fraud. (8 marks)

QUESTION 2
December 2021 Question One D
Describe three types of corruption fraud that may be carried out in an entity. (3 marks)

QUESTION 3
November 2020 Question Two C
Other than in fraud detection, suggest four other areas where forensic accounting and auditing might be applied. (4 marks)

QUESTION 4
November 2020 Question Five C
Explain five reasons why directors might decide not to correct a material misstatement in the financial statements. (5 marks)

QUESTION 5
May 2018 Question Five B
Explain the three components of the fraud triangle. (6 marks)

QUESTION 6
November 2017 Question Five C
Discuss five stages that might be followed in carrying out a forensic audit. (10 marks)

QUESTION 7
November 2015 Question One A
(i) Define the term “forensic accounting”. (1 mark)
(ii) Explain a situation in which forensic accounting might be applied. (1 mark)