We also identified some transfers to other banks that were believed to be related to the owner or other company bank accounts.
Still, it was recorded as payment to vendors in the bookkeeping. We then decided to request a bank balance confirmation letter to confirm and reconcile his bank account balance. When our team received the bank's response, it appeared that the client hadn’t provided us with all the bank statements.
Further investigation showed that he had another two bank accounts with a different bank. Therefore, we asked the client to provide us with the missing bank statements from the other two bank accounts. Following a complex analysis, our team of accountants found that vendors were overestimating balances taking advantage of the fact that the client hadn’t provided them with all the payment confirmations as evidence. At the end of the investigative process of all the creditors’ details and banks, we corrected the gaps and provided the client with a competent financial report.