Forensic Audit

Khandhar Mehta and Shah
forensic audit

Corporate fraud has been a serious risk to businesses of all sizes and types.

Some of the recent cases of large corporate frauds have shown that dishonesty is prevalent everywhere, and it affects the profitability, efficiency, and reputation of the organization. Forensic auditing includes a vast spectrum of activities, and it is not limited to regulatory guidance. It is a very specialist type of auditing, and it requires a team of highly skilled forensic auditors to carry out the fraud investigation. The process of forensic auditing is a very sensitive one and requires cooperation from both the client and the forensic auditor. We are here to assist you through every step of forensic accounting and forensic auditing to make it a straightforward process.

What is forensic audit

Forensic auditing is defined as an examination and investigation of a firm or individual’s financial statements and records to find evidence that can later be used in the court of law. There are various reasons for conducting forensic auditings, such as for prosecuting someone for embezzlement, financial crimes, or fraud.

The process of forensic auditing is most likely to be similar to other types of auditing, as it includes phases like planning, investigating, reviewing, and reporting to the client. The reason as to why the investigation is conducted is to discover if the fraud actually took place, and if it did who were involved, to quantify the monetary loss and finally present the record to the client and ultimately to the court.

Therefore, in simple words, it can be concluded that forensic auditing is a procedure carried out to produce evidence. The auditing techniques helps in identifying and gathering evidence to prove various aspects like duration, the involvement of people and quantity of loss, etc.

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types of fraud

As a forensic auditor, we are asked to audit or investigate different types of fraud. While one can categorize fraud into many different types, they can broadly be categorized into three types:

Asset misappropriation

As per our experience, it is the most common fraud by far. It includes cash theft, which can be anything from stealing petty cash to cash from the office treasure. Fraudulent disbursement is also an example of this fraud where the employees might make payments to fictitious suppliers. Fictitious invoices, misuse of assets, and embezzlement of stock in trade are some of the examples of asset misappropriation.

Corruption

It further includes three types of corruption that are extortion, bribery, and conflict of interest. Extortion means demanding money for securing an outcome from it. Bribery means offering money to obtain a desired place or status. Conflict of interest happens when fraudster influences a person to achieve personal gain, which is most detrimental for the company.

Financial statement fraud

This type of fraud causes material misstatement in the company’s financial statement. It occurs when someones intentionally falsify the financial statement by omitting, adding, or misrepresenting the facts. It is done to deceive the users of the financial statements and influence their decisions.

our forensic audit methodology:

the procedure of forensic auditing

The following are the steps we follow to conduct forensic auditing:

Forensic Audit Firms in Ahmedabad

WHY CHOOSE KMS FOR THE FORENSIC AUDITING?

Capital expenditure review

We undertake capital expenditure review to find out the real value of assets and the amount of overstatement or understatement

Computer-assisted reviews

We undertake a review of software programs, tools, emails, and reports, to uncover fraud and misstatements

Records review

We provide records review service where we check vouchers, invoices, registers, and other records to verify their accuracy and authenticity

Expense reviews

We analyze expenses to find out the extent of an overstatement, or understatement for a wrongful intention
We understand the sensitivity attached to carrying out of forensic auditing. We have a team of forensic auditors who are also experts in fraud investigations. The team has carried out a number of forensic auditing for various clients. Our team of forensic auditors works relentlessly and uses the latest techniques and methods to carry out this forensic auditing service. We provide our auditors specialized training, which upgrades their skills and also ensures credibility and professionalism. Our decades of experience and perfection in all the services we carry out make us the best choice for providing forensic audit services in Ahmedabad.

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frequently asked questions(faqs)

Forensic audit is an examination and investigation of the financial statements of a firm to detect any diversion of funds or any possible window dressing to find out evidence which can be presented in the court of law.
There are mainly two functions of a forensic auditor that are litigation support and investigation to seek any damages that might have occurred.