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A forensic audit is an examination and evaluation of a firm's or individual's financial information for use as evidence in court. A forensic audit can be conducted in order to prosecute a party for fraud, embezzlement or other financial claims. In addition, an audit may be conducted to determine negligence or even to determine how much spousal or child support an individual will have to pay.
Forensic Audit is a specialization in accounting. The audit covers wide range of investigative activities performed by accountants. It is an examination and evaluation of financial information for use as evidance in court.
Aforensic audit could also cover situations that do not involve any fraud duch as disputes related to a bankruptcy, business closures and divorces.
Ot generally includes 3 steps, which are Planning, Review and a Report.
A Forensic Audit is an Cross Examination of the Financial Statements and Transactions of an enterprise in order to
1) Conclude whether any fraud or Mis managment has taken place
2) Know Whether the Existing Procedure laid are sufficient to cover the complex nature of the business and are being sufficient to resist the exposure to Fraud or Mis Management. and
3) Obtain enforceable legal Evidence against the Defaulters in order to sue in the court of law.
A forensic audit is the process of reviewing a person's or company's financial statements to determine if they are accurate and lawful. Forensic accounting is most commonly associated with the IRS and tax audits, but it may also be commissioned by private companies to establish a complete view of a single entity's finances.
