Actually, the term forensic Audit is not defined anywhere. Though there is a minute difference in the two concepts, normally, forensic accounting is used as the synonym to the forensic audit. In forensic accounting actions, the accountant be acquainted with that the fraud exist while in the forensic audit, the forensic auditor is affianced to discover if the fraud exist or not?
Forensic auditors or say forensic accountants own the special skills to document & detect fraud. Their role include understand the legal scope of the evidence, investigation, bringing out proof, write reports, and search the ways to prove it.
A forensic audit is needed wherever the company’s finances present a legal concern. For example, Forensic audit is used in cases of necessities to determine tax liability or for the suspected fraud. Forensic audits needs skill sets in accounting along with specialize in keeping track of counterfeit, following a money trail and actual balance sheets. He has supposed to check for inaccuracies in overall and detailed reports of income or expenditures. If the forensic auditor find absurdity he has further investigate and determine the reason.
On a regular basis, many companies self-audit to make sure the workflows and production are in normal flow with no downer, and generate report to provide executives, shareholders, clients and customers, a better sense for the finances of the business. But, in the case company itself is commending fraud to falsify reports, a forensic audit is become essential to determine the lost income because of a fake report as well as to determine the loss the fake report caused to shareholders, clients or employees.
Forensic accounting & fraud detection is an independent and comprehensive process of reviewing financial statements to determine its accuracy. Business environment today is volatile, the perpetrators are increasingly sophisticated, also the stakeholder expectations are getting higher and along with the regulatory enforcement, the need for fraud risks are increasing.
Our Forensic Services is the answer to help you overcome these censorious business challenges, effectively.