Forensic Accounting – NBC Institute

AAA – May 2019 – L3 – Q1 – Forensic Auditing

Analyze forensic accounting, discuss ethical principles, and outline procedures for Ayeniromo Microfinance Bank forensic investigation.

Question

Ayeniromo Microfinance Bank Limited has been operating for more than five years in Ekemode Local Government area of a state in Nigeria. The bank opened three cash centres in three locations in the local government area in 2013.

Business activities have been very encouraging in one of the cash centres until a sudden change in activities in 2016. This resulted in the negative performance of the cash centre. The managing director thereafter decided to investigate the causes of the problems in the cash centre.

An interim report of the preliminary investigation on the cash centre identified infractions on cash takings from customers by some staff of the cash centre during the year 2016.

The managing director and the board decided to engage your firm as forensic accountants with the following terms of reference:

Investigate whether fraud has actually occurred and if so, to obtain evidence to support that assertion in a court of law.
Identify the individual(s) who has/have committed the fraud and obtain evidence that can be used in a court of law to link them with the fraud.
Estimate the financial loss that has occurred because of the fraud.

You are required to:
a. Discuss the concept of forensic accounting and explain the nature of forensic investigation and forensic audit. (10 Marks)
b. Analyse and apply the FIVE fundamental principles of the IFAC’s Code of Ethics for professional accountants to forensic investigation. (10 Marks)
c. Explain the procedures to be followed in a forensic investigation engagement for Ayeniromo Microfinance Bank Limited. (10 Marks)

Answer

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Tags: Forensic Accounting, Fraud investigation, Investigation procedures, Professional Ethics
Level: Level 3

Topic: Forensic Auditing

AAA – May 2021 – L3 – Q5 – Forensic Auditing

Explanation of forensic accounting, investigation, audit, related government agencies, ethical principles, and procedures for conducting a forensic audit.

Question

Judi Nigeria Limited is a company that manufactures bicycles. The company acquired M&M Tires Limited, a manufacturer of tyres, in the 2018 financial year. Six months after the acquisition, M&M Tires declared bankruptcy.

The management of Judi Nigeria alleged that there had been financial impropriety by the previous management of M&M and that the 2017 financial statements of the company did not show a true and fair view of its financial performance. The management of Judi Nigeria Limited also alleged that the auditors of M&M had been negligent in carrying out the audit.

The Managing Director has asked your audit firm to carry out a forensic audit to determine if the auditors were negligent in their duties.

Required:

(a) Distinguish among forensic accounting, forensic investigation, and forensic audit. (6 Marks)
(b) Identify the various government agencies associated with forensic auditing. (4 Marks)
(c) Apply the fundamental ethical principles to the forensic auditor’s engagement. (5 Marks)
(d) Describe the procedures to be adopted by an auditor in a forensic audit. (5 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Ethical Principles, Forensic Accounting, Forensic Audit, Forensic Investigation, Forensic Procedures
Level: Level 3

Topic: Forensic Auditing

AAA – Nov 2013 – L3 – AII -Q8 – Forensic Auditing

Explores the components of forensic accounting, including investigative aspects.

Question

Forensic accounting encompasses both …………… and investigative accounting.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Techniques, Forensic Accounting, Fraud Detection, Investigative Accounting
Level: Level 3

Topic: Forensic Auditing
Series: NOV 2013

AAA – May 2019 – L3 – Q1 – Forensic Auditing

Analyze forensic accounting, discuss ethical principles, and outline procedures for Ayeniromo Microfinance Bank forensic investigation.

Question

An interim report of the preliminary investigation on the cash centre identified infractions on cash takings from customers by some staff of the cash centre during the year 2016.

The managing director and the board decided to engage your firm as forensic accountants with the following terms of reference:

Investigate whether fraud has actually occurred and if so, to obtain evidence to support that assertion in a court of law.
Identify the individual(s) who has/have committed the fraud and obtain evidence that can be used in a court of law to link them with the fraud.
Estimate the financial loss that has occurred because of the fraud.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Forensic Accounting, Fraud investigation, Investigation procedures, Professional Ethics
Level: Level 3

Topic: Forensic Auditing

AAA – May 2021 – L3 – Q5 – Forensic Auditing

Explanation of forensic accounting, investigation, audit, related government agencies, ethical principles, and procedures for conducting a forensic audit.

Question

The Managing Director has asked your audit firm to carry out a forensic audit to determine if the auditors were negligent in their duties.

Required:

Answer

Find Related Questions by Tags, levels, etc.

Tags: Ethical Principles, Forensic Accounting, Forensic Audit, Forensic Investigation, Forensic Procedures
Level: Level 3

Topic: Forensic Auditing

AAA – Nov 2013 – L3 – AII -Q8 – Forensic Auditing

Explores the components of forensic accounting, including investigative aspects.

Question

Forensic accounting encompasses both …………… and investigative accounting.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Audit Techniques, Forensic Accounting, Fraud Detection, Investigative Accounting
Level: Level 3

Topic: Forensic Auditing
Series: NOV 2013

Question Tag: Forensic Accounting

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AAA – May 2019 – L3 – Q1 – Forensic Auditing

Analyze forensic accounting, discuss ethical principles, and outline procedures for Ayeniromo Microfinance Bank forensic investigation.

AAA – May 2021 – L3 – Q5 – Forensic Auditing

Explanation of forensic accounting, investigation, audit, related government agencies, ethical principles, and procedures for conducting a forensic audit.

AAA – Nov 2013 – L3 – AII -Q8 – Forensic Auditing

Explores the components of forensic accounting, including investigative aspects.

AAA – May 2019 – L3 – Q1 – Forensic Auditing

Analyze forensic accounting, discuss ethical principles, and outline procedures for Ayeniromo Microfinance Bank forensic investigation.

AAA – May 2021 – L3 – Q5 – Forensic Auditing

Explanation of forensic accounting, investigation, audit, related government agencies, ethical principles, and procedures for conducting a forensic audit.

AAA – Nov 2013 – L3 – AII -Q8 – Forensic Auditing

Explores the components of forensic accounting, including investigative aspects.

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Question Tag: Forensic Accounting

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AAA – May 2019 – L3 – Q1 – Forensic Auditing

Analyze forensic accounting, discuss ethical principles, and outline procedures for Ayeniromo Microfinance Bank forensic investigation.

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AAA – May 2021 – L3 – Q5 – Forensic Auditing

Explanation of forensic accounting, investigation, audit, related government agencies, ethical principles, and procedures for conducting a forensic audit.

You're reporting an error for "AAA – May 2021 – L3 – Q5 – Forensic Auditing"

AAA – Nov 2013 – L3 – AII -Q8 – Forensic Auditing

Explores the components of forensic accounting, including investigative aspects.

You're reporting an error for "AAA – Nov 2013 – L3 – AII -Q8 – Forensic Auditing"

AAA – May 2019 – L3 – Q1 – Forensic Auditing

Analyze forensic accounting, discuss ethical principles, and outline procedures for Ayeniromo Microfinance Bank forensic investigation.

You're reporting an error for "AAA – May 2019 – L3 – Q1 – Forensic Auditing"

AAA – May 2021 – L3 – Q5 – Forensic Auditing

Explanation of forensic accounting, investigation, audit, related government agencies, ethical principles, and procedures for conducting a forensic audit.

You're reporting an error for "AAA – May 2021 – L3 – Q5 – Forensic Auditing"

AAA – Nov 2013 – L3 – AII -Q8 – Forensic Auditing

Explores the components of forensic accounting, including investigative aspects.

You're reporting an error for "AAA – Nov 2013 – L3 – AII -Q8 – Forensic Auditing"

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Customer

Get In Touch

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