Banks and Lending Institution Records
Thomas J. Garnier, CFE
U.S. Treasury Department
Bureau of Alcohol, Tobacco, and Firearms
I. Banks and Lending Institutions - provides a record of financial
transactions of owners and/or businesses.
A. Bank Statements- Provide the forensic accountant with a monthly
summary of owners and/or businesses financial transactions (deposit and
expenditures). In addition to providing the name of the bank, the name
of the account, and the account number, bank statements also show check
numbers, date of checks, deposit amounts, check amounts, monthly balances,
and possible cash flow problems (*NSF checks, negative balances, etc.)
1.) Canceled checks- Provides the forensic accountant with the
following: the name of the bank, name on the account, the account number,
payee name, check approving authority, and the memo notation section.
2.) Deposit ticket- show type of deposits (checks or cash).
3.) Deposit items- same as above.
4.) Debit/Credit Memos- (loans, bank charges, return checks.)
5.) Cash Transaction Records (CTR)- deposits & withdrawals
6.) Wire Transfer Records- appears on bank statement
7.) Safe Deposit log- shows number of trips to deposit box (date
8.) Certificate of Deposits (CD's)- conversion of cash into investment
II. Loans- shows obligations (details) of owner and/or business
as well as potential assets. In addition, loans include, as well as provide
the forensic accountant with the name of the lending institution, name of
the borrower, date of loan, monthly payments, interest rates, collateral,
and terms of loan (length/period of loans).
A. Application- Primary source documents for the following: Name,
address, city/state, telephone number, social security number of the borrower;
credit references; amount needed or sought, employer's name; debts of the
borrower; and the annual income of the borrower.
Documents that may accompany the application:
B. Financial Statements
C. Tax returns
D. Loan officer notes
E. Payment history
F. Dun and Bradstreet, TRW reports
III. Credit Cards- show mobility and/or location of the individual(s)
during time of purchase(s).
A. Application- may contain same information as loan application
B. Monthly statement- show purchase history (dates, amount, items purchased,
C. Payment history- self-explanatory.
reprinted by permission