India Entry & Business Startup Consultings

Investigation / Forensic Audit

Investigation / Forensic Audit

A forensic audit is an examination and evaluation of an organization’s financial records to derive evidence that can be used in a court of law or legal proceeding. Forensic audits cover a wide range of investigative activities. A forensic audit may be directed to accuse a party of fraud, embezzlement, or other financial crimes. Forensic audits could also involve situations that do not involve financial fraud, such as disputes related to bankruptcy filings, business closures, etc.

A forensic auditor is needed to have distinct training in forensic audit techniques and in the legitimacies of accounting matters. A forensic audit has further steps that are required to be executed in addition to regular audit procedures.

  1. Plan the investigation–When the client hires a Forensic auditor, the auditor is required to understand what the focus of the audit is.
  1. Collecting Evidence–By the conclusion of the audit, the forensic auditor is required to understand the possible type of fraud that has been carried out and how it has been committed.
  • Common techniques used for collecting evidence in a forensic audit include the following: Substantive techniques
  • Analytical procedures
  • Computer-assisted audit techniques
  • Understanding internal controls and testing them to understand the loopholes which allowed the fraud to be perpetrated.
  • Interviewing the suspect(s)
  1. Reporting –A report is required so that it can be presented to a client about the fraud. The report should include the findings of the investigation, a summary of the evidence, an explanation of how the fraud was perpetrated, and suggestions on how internal controls can be improved to prevent such frauds in the future. The report needs to be accessible to a client so that they can continue to file a legal case if they so require.
  1. Court Proceedings –The forensic auditor requires to appear during court proceedings to describe the evidence collected and how the suspect was recognized. They should simplify the complex accounting issues and explain in layman’s language so that people who have no understanding of the accounting terms can still understand the fraud that was carried out.

Essentials of Investigation Forensic Audit Services are:

  • Corporate Forensic
  • Litigation & Disputes
  • Third-Party Forensic
  • Compliances
  • Cyber Forensics

How ASC Helps?

  • Providing formal training and knowledge of a wide range of methodologies.
  • Assist in investigating a variety of situations.
  • Assist you with formulating a solution to deal with such situations.
  • Suggesting the ways further where such a situation can be completely avoided in the future.
  • Assist you in developing a risk management system based on business intelligence techniques.
  • Assist you in helping an organization to avoid getting into a situation where its brand and reputation will be at stake.
  • Assistance in having policies and preventive mechanisms in place.
  • Assistance in circulating the risk awareness programs amongst the stakeholders to remove hurdles in the path of the organization achieving its Vision and Goals.
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