How can an analyst verify the accuracy of reported income on a personal financial statement?

The most effective way for an analyst to verify the accuracy of reported income on a personal financial statement is by utilizing all the provided methods: referencing past income tax returns, conducting client interviews, and checking bank statements.

Referencing past income tax returns allows the analyst to cross-check the reported income against official documentation submitted to tax authorities. This gives a reliable historical account of the individual's earnings and provides a basis for understanding income trends over time.

Through client interviews, the analyst can obtain additional context about the individual's income sources, changes in employment, or any special circumstances that may affect income. This qualitative data complements quantitative data by clarifying anomalies or discrepancies that may arise.

Checking bank statements gives the analyst a real-time view of the individual’s financial activity, including deposits that reflect income. This direct inspection of transactional data enhances the verification process, as it helps to confirm whether reported figures align with actual financial inflows.

Combining all these methods strengthens the analysis and provides a comprehensive view of a person's financial situation, making it a robust approach to income verification.