First, ask your bank to determine whether the check was deposited with them (using the endorsements on the check). If so, they should be able to determine whether the check was cashed out or deposited, and to whose account.
If it is determined that the check was not negotiated by you or on your behalf, you should ask your bank to assist you in completing an affidavit of forged endorsement. Keep a copy for your records, and provide the original to your client, along with a request for another check. Your client should then take the forged check and affidavit to his bank, where it will be processed as a claim against the bank where the check was negotiated. Ultimately, you should receive your money, and your client should be reimbursed by his bank.