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CRITICAL ACCOUNTING: INVESTIGATING IMPROPRIETY

CRITICAL ACCOUNTING: INVESTIGATING IMPROPRIETY

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CPV STORIES

A client approached us with a financial statement completed by an external accountant and the suspicion that the bookkeeping was improper.


The client believed that the external accountant prepared the accounting books showing higher income and fewer purchases than actually made. Our accountants were requested to find and correct the gaps and mistakes in accounting. 
Before diving deeper into the matter, we asked the client to provide us with all the invoices issued and received during the financial year, as well as any other relevant information. 
CRITICAL ACCOUNTING: INVESTIGATING IMPROPRIETY
If you doubt the quality of the submitted bookkeeping, one option that CPV Corporate suggests is to ask your accountant to investigate the record-keeping one more time. If this option does not remove suspicion, the next step is to apply for an external accountant to do the bookkeeping one more time to compare the results. 

HOW WE HELPED

Following our investigation, we realised that some of the sales recorded in the current year actually took place and were related to the following year.


We then requested more evidence from the client, asking him to provide us with transportation documents. At the end of our analysis, we found that some of them were indeed dated with the upcoming year. 

Therefore, our team concluded that the external accountant's mistake was in recording invoices without considering the year. The income gap should have been recorded for the following financial year. We prepared our report to the client stating the amount of miscalculations and identified gaps in the financial statement. 
CRITICAL ACCOUNTING: INVESTIGATING IMPROPRIETY

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