In forensic Accounting, documents are not just records, they are repositories of intent, oversight, and evidence. They speak in patterns, omissions, and inconsistencies. The second step in the Dr. Kudzanai Vere Forensic Framework; Review Documentation, is where the Forensic Accountant begins to decode the narrative behind the numbers.
This phase demands more than technical skill. It requires discipline, skepticism, and strategic curiosity. The goal is not merely to read, but to interrogate. What’s missing? What’s misaligned? What’s repeated too often, or not at all?
🎯 Purpose of Reviewing Documentation
- To validate or challenge anomalies detected in step one
- To trace the flow of decisions, approvals, and transactions
- To identify inconsistencies, omissions, or manipulations
- To build a foundation for evidence collection and interviews
📂 Key Categories of Documentation to Review
Here’s a breakdown of the core document types that forensic Accountants must examine with precision:
1️⃣ Financial Records
- General Ledger and Trial Balance
- Bank Statements and Reconciliations
- Cashbooks and Petty Cash Vouchers
- Journal Entries and Adjustments
- Accounts Payable and Receivable Ledgers
- Payroll Records and Timesheets
🔍 Why it matters: These records reveal transactional integrity, timing discrepancies, and potential manipulation of balances.
2️⃣ Contracts and Agreements
- Supplier and Vendor Contracts
- Employment Agreements
- Loan and Lease Agreements
- Partnership or Joint Venture Documents
🔍 Why it matters: Contracts often contain clauses that are exploited or ignored. Look for unauthorized amendments, vague terms, or missing signatures.
3️⃣ Procurement and Inventory Documentation
- Purchase Orders and Invoices
- Goods Received Notes (GRNs)
- Stock Movement Reports
- Inventory Reconciliation Sheets
🔍 Why it matters: These documents help trace procurement fraud, fictitious purchases, or inventory misappropriation.
4️⃣ Internal Communications
- Emails and Memos
- Meeting Minutes and Board Resolutions
- WhatsApp or SMS Correspondence (where admissible)
🔍 Why it matters: Internal communications often reveal intent, collusion, or attempts to conceal. They provide context to decisions and timing.
5️⃣ Compliance and Regulatory Filings
- Tax Returns and ZIMRA Correspondence
- NSSA and Pension Submissions
- Environmental, Health, and Safety Reports
- Licensing and Certification Documents
🔍 Why it matters: Non-compliance or falsified filings can indicate broader misconduct or negligence.
6️⃣ Audit Trails and System Logs
- ERP Access Logs
- User Activity Reports
- Change Logs and System Overrides
🔍 Why it matters: These digital footprints reveal who accessed what, when, and why—critical in cases of unauthorized transactions or data tampering.
7️⃣ Board and Governance Records
- Board Packs and Strategic Plans
- Risk Registers and Internal Audit Reports
- Code of Conduct and Ethics Policies
🔍 Why it matters: Governance documents show whether oversight structures were followed or bypassed.
8️⃣ Supporting Documentation
- Receipts, Quotations, and Delivery Notes
- Travel Logs and Expense Claims
- Third-party Confirmations and Correspondence
🔍 Why it matters: These validate the authenticity of transactions and help triangulate evidence.
🧠 Dr. Vere’s Insight
“Documents don’t lie, they whisper. The forensic auditor’s job is to listen with precision, interpret with wisdom, and report with courage.”
🛠️ Tips for Reviewing Effectively
- Use a checklist to ensure no category is overlooked
- Apply comparative analysis across periods and departments
- Highlight missing, altered, or duplicated records
- Cross-reference documents with interviews and system data
- Maintain a chain of custody for sensitive files
🔗 Next in the Series: K – Know Red Flags
Tomorrow, we’ll explore how to identify early indicators of fraud or misstatement, before they escalate into full-blown crises.