Khandhar Mehta and Shah
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.
Khandhar Mehta and Shah
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knowledge. Experience. Teamwork.
Being one of the top CA firms in Ahmedabad, we always focus on giving our clients the best in class services that reflect our values and vision of transparency, flawless, and professional work. Visit our CA website to understand and know more about our services and our company. Choose us for your business as the best deserves the best.
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:
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.
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 proccesure of forensic auditing
The following are the steps we follow to conduct forensic auditing:
Why choose KMS for the forensic auditing?
Our forensic audit services include:
Capital expenditure review
We undertake capital expenditure review to find out the real value of assets and the amount of overstatement or understatement
We undertake a review of software programs, tools, emails, and reports, to uncover fraud and misstatements
We provide records review service where we check vouchers, invoices, registers, and other records to verify their accuracy and authenticity
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.
our clients say
trust. transparency. professional expertise.
“KMS’s forensic auditors and customer service proved us that we made the right decision by choosing them. Their forensic auditing process was absolutely seamless and efficient. The suggestions and solutions they gave at the end, along with the forensic audit report, made us believe why they are known for giving the best fraud investigation service in Ahmedabad. Their decades of experience and professionalism shows in their work, and we are pleased with our choice. We would surely continue and recommend them for their forensic audit services.”
“KMS’s team of forensic auditors and consultants work really hard and make sure the results are precise and infallible. They truly understood what our objective behind the forensic audit was and what we really wanted out of their auditing services. Experience really is an invaluable asset, and with KMS, it shows in their quality of work and the way they carry the business full of warmth and compassion. We would surely continue to work with them and recommend them for their forensic audit services.”
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.