Financial Investigations
Connecting transactions with their supporting evidence.
The financial context
A financial investigation starts with a defined question. Relevant records can then be reconciled and relationships examined, while keeping a clear distinction between documented facts, analytical inferences and unanswered questions.
Questions that shape the review
What is the question being investigated?
Define the concern and period before deciding which records or transaction populations to examine.
Can the analysis be traced to the source?
Keep reconciliations, exceptions and the basis of each inference visible.
From information to an explanation
The work should connect the source material to the question being considered. Differences in definitions, periods or assumptions need to be made visible, together with the effect of any missing records.
The resulting explanation should distinguish what is documented, what depends on judgement and what remains uncertain. Its form and level of detail depend on the agreed purpose.
A question of suitability
The practice’s relevant experience, independence and the information available must be confirmed before any engagement. The purpose, scope and reporting requirements are agreed before analysis begins.
Discuss the financial question.
Start with the background, the relevant period and what you need to understand.
Discuss an enquiry