Forensic auditors examine individual or company financial records to find evidence suitable for use in the court of law.
Forensic auditors combine investigative techniques along with an understanding of accounting principles to determine if there are illegal practices or fraud hidden in companies’ financial records
Certified forensic auditors are trained to present their findings in legal proceedings that concern fraud, embezzlement, or financial disputes.
A forensic audit is an independent financial investigation that is designed to look for concrete evidence of fraud or mishandling of funds. Simple financial audits only evaluate whether an organization’s financial statements fairly and transparently represent its financial standing. A forensic audit goes several steps further to trace the chain of funds and uncover possible fraud. This is similar to the purpose of a forensic criminal investigation. Because of the depth of a forensic audit investigation, its findings are admissible in civil court as evidence.
Forensic auditors are generally CPA’s who are knowledgeable and can understand and have experience with fraudulent activities that could take place in the organization. In many cases the fraud is not discovered by the owners or the board until later time.
If you are suspecting fraud in your organization or seeing that the sales are up, yet the cash flow is poor or the organization has poor internal controls and the organization seems to be losing money while the volume of business has increased, your organization may be a victim.