What is Forensic Audit? How is it conducted? What are the auditors responsibility in this regard?

The examination and evaluation of an organization's or an individual's financial information to detect fraud or for a use as an evidence in court is forensic audit.

The procedure to conduct forensic audit is quite similar to the normal audit but with some special consideration. The objectives or the responsibilities of auditors will include:

• identifying the type of fraud that has been operating.
• how long it has been operating for.
• how the fraud was concealed for the duration.
• identify the fraudster(s) involved
• quantifying the financial loss suffered.
• gathering evidence to be used in courts proceedings.
• providing advice to prevent the re-occurrence of the fraud.