What is the meaning of forensic audit?

What do forensic auditors do?

Forensic auditors are investigators of legal and financial documents that are hired to look into possible suspicions of fraudulent activity within a company; or are hired by a company who may just want to prevent fraudulent activities from occurring.

Why is forensic auditing important?

Forensic audit investigations are important as they help uncover the modus operandi of corporate misdoings such as embezzlement, bribes, extortion, fictitious transactions, kickbacks and conflict of interest. They can also help locate or identify potential fraud.

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

One of the main difference between both of them is that, the audit gives you the guarantee that the financial statements that have been checked are true and fair and are reasonable and forensic audit helps to analyze and investigate a certain set of transaction that if any fraud has been occurred.

What is investigative audit?

Investigative Auditing involves the examination of accounts and the use of accounting procedures to discover financial irregularities and to follow the movement of funds and assets in and out of organisations. … Identification of financial activity; Tracing of financial assets.

What is another name for a forensic audit?

Forensic auditing is also known as forensic accounting. A forensic auditor is a Certified Public Accountant (CPA) who uses special techniques to detect or prevent certain types of crime for businesses and government agencies.

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Who can become forensic accountant?

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.

Who can conduct forensic audit in India?

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.

What auditing means?

Definition: Audit is the examination or inspection of various books of accounts by an auditor followed by physical checking of inventory to make sure that all departments are following documented system of recording transactions. It is done to ascertain the accuracy of financial statements provided by the organisation.

How many forensic auditors are there in India?

There are 72 Forensic Accounting Firms in India which are amazing! Before we go ahead here is a little about my journey! I qualified as a Chartered Accountant from The Institute of Chartered Accountants of India (ICAI).