Forensic Accounting: Financial-Statement Fraud, AML and Litigation Support
Published:
Reviewed by Bismith B · 15 Jun 2026
Questions
30
Duration
30 min
Faculty-reviewed
0
Updated
09 Jun 2026
About this mock
This test probes advanced competencies in forensic accounting across three interlocking domains. Candidates must apply analytical judgment to financial-statement fraud schemes, including improper revenue recognition, channel stuffing, and bill-and-hold arrangements that inflate reported earnings. The money-laundering section covers the classic three-stage model, typologies identified by the Financial Action Task Force, and the design of effective AML controls such as transaction monitoring, customer due diligence, and suspicious-activity reporting. The asset-tracing and economic-damages sections examine the methodologies forensic accountants use in litigation support: net-worth analysis, source-and-application-of-funds tracing, the lost-profits models recognised by courts, and the standards governing expert-witness reports under frameworks such as the US Federal Rules of Evidence and IESBA guidance. Questions are set at analysis level, requiring candidates to distinguish closely related methods, identify the deficiency in a described procedure, or apply a principle to a realistic fact pattern drawn from international practice.
Sources & references
Questions in this mock are written and verified against the following sources. Citations are recorded per question and shown in the explanation after submission.
- cited in 6 questions
The Litigation Services Handbook: The Role of the Financial Expert (Weil, Frank, Hughes & Wagner)
Chapter on Expert Witness Standards and Daubert Gatekeeping
- cited in 5 questions
Forensic and Investigative Accounting (Crumbley, Heitger & Smith)
Chapter on Construction Fraud: Bid Manipulation and Change-Order Schemes
- cited in 4 questions
Principles of Fraud Examination (Wells)
Chapter on Bankruptcy Fraud: Fraudulent Conveyance and Asset Concealment
- cited in 2 questions
FATF Recommendations (Financial Action Task Force, 2012, updated 2023)
Recommendation 12: Politically Exposed Persons and Recommendation 10: Customer Due Diligence
- cited in 2 questions
Financial Shenanigans: How to Detect Accounting Gimmicks and Fraud in Financial Reports (Schilit & Perler)
Chapter on Related-Party Transactions and Circular Revenue Schemes
- cited in 1 question
Business Valuation: An Integrated Theory (Mercer & Harms)
Chapter on Discount Rate Development: Build-Up Method and Company-Specific Risk
- cited in 1 question
Financial Statement Analysis and Security Valuation (Penman)
Chapter on Cash Flow Analysis and Earnings Quality Assessment
- cited in 1 question
FATF Guidance for a Risk-Based Approach: Virtual Assets and Virtual Asset Service Providers (Financial Action Task Force, 2019, updated 2021)
Section on Transaction Monitoring Requirements for VASPs
- cited in 1 question
Expert Witness Institute Guidelines and CPR Part 35 (Civil Procedure Rules, England and Wales)
Part 35: Experts and Assessors, Overriding Duty to the Court
- cited in 1 question
International Narcotics Control Strategy Report (US Dept of State, Money Laundering section)
Section II: Money Laundering and Financial Crimes, Three-Stage Model
- cited in 1 question
FATF Guidance on Correspondent Banking (Financial Action Task Force, 2016)
Section on Risk Factors Specific to Correspondent Banking Relationships
- cited in 1 question
International Standard on Auditing 240: The Auditor's Responsibilities Relating to Fraud (IAASB)
Paragraphs 32-33: Responses to Assessed Risks of Material Misstatement Due to Fraud
- cited in 1 question
FATF Guidance for a Risk-Based Approach: Money Services Businesses (Financial Action Task Force, 2016)
Section on Applying the Risk-Based Approach to MSB Monitoring
- cited in 1 question
Business Interruption: Insurance and Claims (Riley on Business Interruption Insurance)
Chapter on Calculating Gross Profit: Policy Definitions and Uninsured Working Expenses
- cited in 1 question
FATF Report on Trade-Based Money Laundering (Financial Action Task Force, 2006, updated 2020)
Section on Trade-Based Money Laundering Techniques: Under- and Over-Invoicing
- cited in 1 question
Forensic Accounting and Fraud Investigation for Non-Experts (Silverstone & Sheetz)
Chapter on Revenue Fraud Detection Techniques
How our mocks are built
Questions are written and edited by the ForensicSpot team and cited from peer-reviewed forensic textbooks, official syllabi and primary case law. Each one is verified before publishing. Detailed explanations show after you submit, so the test stays a real test. See a mistake? Tell us.
Common questions
What does the Forensic Accounting: Financial-Statement Fraud, AML and Litigation Support mock cover?+
This test probes advanced competencies in forensic accounting across three interlocking domains. Candidates must apply analytical judgment to financial-statement fraud schemes, including improper revenue recognition, channel stuffing, and bill-and-hold arrangements that inflate reported earnings. The money-laundering section covers the classic three-stage model, typologies identified by the Financial Action Task Force, and the design of effective AML controls such as transaction monitoring, cust
How many questions and how long is the test?+
30 multiple-choice questions, 30 minutes total. Difficulty: hard. Tier: Premium.
Who is this mock for?+
Forensic science students and aspirants who want timed, exam-style practice with explanations and verified source citations on Forensic Auditing and Fraud Examination. Useful for postgraduate entrance preparation and for BSc / MSc forensic students testing their recall under time.
Are the questions reviewed?+
Each question carries a verified source citation. Faculty review for individual questions is in progress.
Do I need an account to take this mock?+
Yes, a free ForensicSpot account is required to start a timed attempt — this lets you save progress, see per-question explanations after submission, and track your topic-level performance over time.