A forensic audit is the process of examination and assessment of the financial information of the company or the individual to utilize as the evidence in the court. A forensic audit may be undertaken in order to prosecute a party for fraud, embezzlement or other financial claims. Forensic audit basically aims at identifying the frauds of three broad categories namely corruption, asset misappropriation and financial statements frauds.
Conducting forensic audit requires the highly specialized knowledge of fraud investigation techniques and the legal framework. At trademark bazaar, we have a team of experts who possess the required expertise and skills required to conduct a forensic audit.
Benefits of Forensic Audit -
Procedure of Forensic Audit -
To start the procedure of forensic audit initially a plan would be developed by the team of auditors with regard to identifying if fraud has been committed, how long it has been going on, the parties involved, quantifying the financial loss and providing fraud prevention measures. Further, the auditing team will examine the relevant documents and collect the evidence to be used in the court. Finally, a report is prepared by the audit team and will be handed over to the client or the court as the case may be.
What is the Forensic Audit?
Forensic Audit is an examination and assessments carried out by the auditors in order to identify irregularities relating to the misappropriation of funds, fraud or specific allegations.
What is the difference between Forensic Accounting and Forensic Auditing?
Many times these two procedures may sound similar however there is a difference between the two. Forensic accountants search specifically for fraudulent activity within organizations whereas auditors verify that companies are compliant with federal regulations and organizational policies.
Why is the Forensic Audit conducted?
Forensic audit is conducted when allegations regarding the misuse of funds, fraud or misrepresentation of information are received.
What is the time limit for completion of the Forensic Audit?
The time consumed in forensic audit varies from case to case. It depends on the complexity of the work and the cooperation of those people who need to be consulted or interviewed to provide the auditors with the necessary information for the examination, as well as the availability of necessary documentation.
Does the department seek to recover the funds spent inappropriately?
Yes, the Department will seek to recover funds in cases the findings of a forensic audit indicate the misuse of funds.