How do you conduct a forensic audit?

1. Plan the investigation

1. Identify what fraud, if any, is being carried out.
2. Determine the time period during which the fraud has occurred.
3. Discover how the fraud was concealed.
4. Identify the perpetrators of the fraud.
5. Quantify the loss suffered due to the fraud.
6. Gather relevant evidence that is admissible in the court.

How is forensic audit investigation is conducted?

The process of a forensic audit is similar to a regular financial audit—planning, collecting evidence, writing a report—with the additional step of a potential court appearance. The attorneys for both sides offer evidence that either uncovers or disproves the fraud and determines the damages suffered.

Who can be appointed as forensic auditor?

But they have some special skills to detect fraud & document it. Thus; any graduate candidate, with at least one year experience in banking & financial sector; will have to clear Certified Banking Forensic Accountant exam to become forensic auditor.

Who performs an internal audit?

Internal auditors are hired by the company, while external auditors are appointed by a shareholder vote. Internal auditors are employed to educate management and staff about how the business can function better.

Who can be a forensic auditor?

Any candidate who is a graduate and have at least one year of experience in the Nationalised Banks, Private sector banks, Co-operative banks or non-banking finance company, credit card company or a financial institution can apply for the examination of Certified Banking Forensic Accountant.

Who needs forensic accounting?

Forensic accountants may be hired after a business suspects theft, fraud or embezzlement. Employee fraud may occur because an employee is under financial pressure due to a divorce, gambling addiction, medical issue or other issue.

Who can become forensic accountant answer?

For Certified Forensic Accountant it is necessary to be a student from a recognized institution/university, should have three years professional experience and has passed Certified Forensic Accounting Professional (CFAP) Exams of Indiaforensic Center of Studies with minimum 75\% of marks.

Who can do forensic audit in India?

How can I become a forensic auditor in India?

Forensic accounting courses are usually offered in the master’s degree level. In order to be a Certified Forensic Accountant in India you must be a Graduate from a recognized University. Besides, you should have a professional experience of at-least three years and clear the CFAP examination with at least 75\% marks.

How to plan a forensic audit?

Plan the investigation – When the client hires a Forensic auditor, the auditor is required to understand what the focus of the audit is. For example, the client might be suspicious about possible fraud in terms of the quality of raw materials supplied.

What is the difference between an internal audit and forensic audit?

Evidence gathered in the forensic audits can be used for legal proceedings, whereas evidence gathered in an internal audit will not be acceptable in legal proceedings. A forensic audit is required when there is suspicion that an employee has intentionally done fraud for his personal gain.

Are Chartered Accounts equipped to conduct a forensic audit?

Analysing the above roles and responsibilities of a forensic auditor, not all chartered accounts are equipped to conduct a forensic audit, as it is a specialised field within accountancy, requiring a distinct skill-set. In light of this, CAs need to take up special training in order to qualify as a forensic auditor.

What are the disadvantages of forensic audit?

It can have ill-effects on the image of the business/company and jeopardize it drastically. It includes any illegitimate use of the office and its resources, or dishonest behaviour. In such instances, a forensic auditor tries to look for accounts of bribery and extortion, or anything that will amount to a conflict of interest.