Answers:
Answer #1A 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.
Answer #2Forensic audit is an independent verification of financial and other records of an organisation to find whether a fraud or misstatement has occurred and to collect verifiable evidence that can establish the fraud or misstatement in the court of law.
| Previous Question | Next Question |
| How do you conduct an investigation of a company, for instance? | What is Forensic Accounting? |