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CS Professional · Internal and Forensic Audit · Fraud Detecting Techniques

While examining a bank-statement copy submitted by a borrower at a Kolkata company, the auditor finds that the running balance does not tally after one entry, and the font of that line differs from the others. What is the most appropriate next step?

Obtain the statement directly from the bank and compare it with the copy submitted. A broken running balance and a differing font indicate possible alteration, and independent third-party evidence is the reliable way to confirm it, while accepting, re-signing or discarding the copy does not resolve the doubt.

  1. AObtain the statement directly from the bank and compare it with the submitted copyCorrect
  2. BAccept the statement since the closing balance looks reasonable
  3. CAsk the borrower to re-sign the copy
  4. DDiscard the statement and stop the review

Explanation

Inconsistent running balance and altered font suggest tampering. Independent confirmation from the bank gives reliable evidence to compare. Accepting or asking for a re-signature adds no reliability, and discarding the statement loses evidence.

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