{"id":23507,"date":"2022-10-17T13:37:58","date_gmt":"2022-10-17T08:07:58","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=23507"},"modified":"2022-12-31T17:51:50","modified_gmt":"2022-12-31T12:21:50","slug":"all-about-forensic-audit-its-audit-techniques","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/all-about-forensic-audit-its-audit-techniques\/","title":{"rendered":"All about Forensic Audit, Its Audit Techniques"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d25e2b5d653\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d25e2b5d653\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/all-about-forensic-audit-its-audit-techniques\/#All_about_Forensic_Audit_Its_Audit_Techniques\" title=\"All about Forensic Audit, Its Audit Techniques\">All about Forensic Audit, Its Audit Techniques<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/all-about-forensic-audit-its-audit-techniques\/#What_are_the_basic_Limitations_of_Forensic_Audit\" title=\"What are the basic Limitations of Forensic Audit?\">What are the basic Limitations of Forensic Audit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/all-about-forensic-audit-its-audit-techniques\/#The_Fraud_Category\" title=\"The Fraud Category\">The Fraud Category<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/all-about-forensic-audit-its-audit-techniques\/#Financial_Statement_Fraud\" title=\"Financial Statement Fraud\u00a0\">Financial Statement Fraud\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/all-about-forensic-audit-its-audit-techniques\/#Fraud_Prevention_measures\" title=\"Fraud Prevention measures\">Fraud Prevention measures<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/all-about-forensic-audit-its-audit-techniques\/#Normal_Forensic_Audit_Approach_or_Methodology\" title=\"Normal Forensic Audit Approach or Methodology\">Normal Forensic Audit Approach or Methodology<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/all-about-forensic-audit-its-audit-techniques\/#Step_by_Step_Approach_for_Methodology_of_Forensic_Audit\" title=\"Step by Step Approach for Methodology of Forensic Audit \">Step by Step Approach for Methodology of Forensic Audit <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/all-about-forensic-audit-its-audit-techniques\/#What_is_approach_to_be_follow_for_Data_Collection_under_Forensic_Audit\" title=\"What is approach to be follow for Data Collection under Forensic Audit?\">What is approach to be follow for Data Collection under Forensic Audit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/all-about-forensic-audit-its-audit-techniques\/#Assessment_Approach_under_Forensic_Audit\" title=\"Assessment Approach under Forensic Audit\">Assessment Approach under Forensic Audit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/all-about-forensic-audit-its-audit-techniques\/#Scheduled_Work_Plan\" title=\"Scheduled Work Plan\">Scheduled Work Plan<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/all-about-forensic-audit-its-audit-techniques\/#What_is_Forensic_audit_Techniques\" title=\"What is Forensic audit Techniques?\">What is Forensic audit Techniques?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"All_about_Forensic_Audit_Its_Audit_Techniques\"><\/span><span style=\"color: #ff0000;\">All about Forensic Audit, Its Audit Techniques<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-23513\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/10\/Forensic-Audit-Its-Audit-Techniques..jpg\" alt=\"Forensic Audit, Its Audit Techniques.\" width=\"873\" height=\"408\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/10\/Forensic-Audit-Its-Audit-Techniques..jpg 670w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/10\/Forensic-Audit-Its-Audit-Techniques.-300x140.jpg 300w\" sizes=\"(max-width: 873px) 100vw, 873px\" \/><\/p>\n<p>Forensic Auditing is an independent examine a company&#8217;s financial accounts and establish whether they are accurate, free from any material misstatements, &amp; most importantly to produce any evidence that may be used in court or legal proceedings, forensic auditing is an independent, comprehensive, and scientific procedure. Forensic Audit\u00a0 due to following reason.<\/p>\n<ul>\n<li>Growing No of Crimes, Scams etc so Forensic Audit services<\/li>\n<li>Need of expert in analysis of financial evidences &#8211; like are of Anti-Bribery Anti-Corruption<\/li>\n<li>Forensic Audit to explore in the area in the IBC Case, Mergers &amp; Acquisitions, Fraud in Govt Bodies, Banks, Insurance Sector, Pvt as well as Public Sector undertaking\u2019s,<\/li>\n<li>Fraud Increases the Forensic Technology Fraud Investigation and Whistle Blowing<\/li>\n<li>Fraud Risk &amp; Non-performing asset Assessment &amp; Litigation support<\/li>\n<li>Forensic Audit Opportunities needs of Govt Bodies, Banks, Insurance Sector, Public Sector undertaking\u2019s,<\/li>\n<li>Investigating Agencies need Forensic Audit.<\/li>\n<li>Higher scrutiny or Tightening economic conditions of governance on companies increases sensitivity to fraud<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"What_are_the_basic_Limitations_of_Forensic_Audit\"><\/span><span style=\"color: #000080;\"><strong>What are the basic Limitations of Forensic Audit?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a href=\"https:\/\/carajput.com\/publications\/all-about-the-forensic-audit-and-its-approach.pdf\">Forensic Audit<\/a> as practiced by Chartered Accountants is limited to analysis of financial and operational working of the target, it lacks the scope of forensic science including verification of signatures, signs, stamps etc.<\/p>\n<ul>\n<li>Forensic auditing can be distracting.<\/li>\n<li>Limited time for working\/analysis,<\/li>\n<li>Forensic auditing takes a lot of time. Forensic auditing<\/li>\n<li>non cooperation or Unavailability of data from the Company under audit<\/li>\n<li>High responsibility post submission of report,<\/li>\n<li>Forensic auditing can be expensive.<\/li>\n<li>Replacement of old staff with newer staff restricts \/ breaks the chain of audit cycle<\/li>\n<li>Limited and inconsistent sharing of data by the Banks and Company Mgt.<\/li>\n<li>Forensic auditing can affect employee morale.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"The_Fraud_Category\"><\/span><span style=\"color: #000080;\"><strong><u>The Fraud Category<\/u><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 1061px;\" width=\"833\">\n<tbody>\n<tr>\n<td width=\"339\">\u00d8\u00a0 <strong>Corruption<\/strong><\/p>\n<p>\u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Conflicts of Interest<\/p>\n<ul>\n<li>Sales Schemes<\/li>\n<li>Purchasing Schemes<\/li>\n<\/ul>\n<p>\u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Bribery<\/p>\n<ul>\n<li>Bid Rigging<\/li>\n<li>Invoice Kickbacks<\/li>\n<li>Illegal Gratuities<\/li>\n<\/ul>\n<p>\u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Economic Extortion<\/p>\n<p><strong><u>\u00a0<\/u><\/strong><\/td>\n<td width=\"339\">\u00d8\u00a0 <strong><u>\u00a0<\/u><\/strong><strong>Asset Misappropriation <\/strong><\/p>\n<p>\u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Cash<\/p>\n<p style=\"padding-left: 40px;\">Theft of Cash Receipts<\/p>\n<p style=\"padding-left: 40px;\">Theft of Cash on Hands<\/p>\n<p>\u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Skimming<\/p>\n<p style=\"padding-left: 40px;\">1.\u00a0\u00a0\u00a0\u00a0 Sales<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Understated<\/li>\n<li>Unrecorded<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\">2.\u00a0\u00a0\u00a0\u00a0 Receivables<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Lapping Schemes<\/li>\n<li>Write \u2013 off Schemes<\/li>\n<li>Unconcealed<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\">3.\u00a0\u00a0\u00a0\u00a0 Refunds and Other<\/p>\n<p style=\"padding-left: 80px;\">\u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Cash Larceny<\/p>\n<ul>\n<li>Fraudulent Disbursements<\/li>\n<\/ul>\n<p>\u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Billing Schemes<\/p>\n<p style=\"padding-left: 40px;\">1. Non-Accomplice Vendor<\/p>\n<p style=\"padding-left: 40px;\">2.\u00a0 Shell Company<\/p>\n<p style=\"padding-left: 40px;\">3. Personal Purchases<\/p>\n<p>\u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Payroll Schemes<\/p>\n<p style=\"padding-left: 40px;\">1.\u00a0\u00a0\u00a0\u00a0 Falsified Wages<\/p>\n<p style=\"padding-left: 40px;\">2.\u00a0\u00a0\u00a0\u00a0 Ghost Employee<\/p>\n<p style=\"padding-left: 40px;\">3.\u00a0\u00a0\u00a0\u00a0 Commission Schemes<\/p>\n<p>\u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Expense Reimbursement<\/p>\n<p>\u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Check Tampering<\/p>\n<p>\u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Register Disbursements<\/p>\n<p>\u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Inventory and All Other Assets<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Financial_Statement_Fraud\"><\/span><span style=\"color: #000080;\"><strong>Financial Statement Fraud<\/strong><strong>\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-23512\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/10\/Screenshot-2022-10-17-135800.png\" alt=\"Investigate in a forensic audit\" width=\"876\" height=\"371\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/10\/Screenshot-2022-10-17-135800.png 876w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/10\/Screenshot-2022-10-17-135800-300x127.png 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/10\/Screenshot-2022-10-17-135800-768x325.png 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/10\/Screenshot-2022-10-17-135800-800x339.png 800w\" sizes=\"(max-width: 876px) 100vw, 876px\" \/><\/p>\n<table style=\"height: 293px;\" width=\"821\">\n<tbody>\n<tr>\n<td width=\"324\">Revenue\/ Asset Understatements<\/p>\n<p>o\u00a0\u00a0 Understated Revenues<\/p>\n<p>o\u00a0\u00a0 Timing Differences<\/p>\n<p>o\u00a0\u00a0 Improper Asset Valuations<\/p>\n<p>o\u00a0\u00a0 Overstated Liabilities &amp; \u00a0Expenses<\/td>\n<td width=\"336\">Revenue\/ Asset Overstatements<\/p>\n<p>o\u00a0\u00a0 Fictitious Revenues<\/p>\n<p>o\u00a0\u00a0 Timing Differences<\/p>\n<p>o\u00a0\u00a0 Concealed Liabilities &amp; Expenses<\/p>\n<p>o\u00a0\u00a0 Improper Disclosures<\/p>\n<p>o\u00a0\u00a0 Improper Asset Valuations<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"Fraud_Prevention_measures\"><\/span><span style=\"color: #000080;\"><strong>Fraud Prevention measures<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Fraud prevention is the implementation of a strategy to banking actions or detect fraudulent transactions &amp; prevent these actions from causing financial and reputational damage to the customer &amp; financial institution.<\/li>\n<li>A strong fraud protection approach will only become more important as Fraud. Following effectiveness of Fraud Detection &amp; Prevention step are mention below:<\/li>\n<\/ul>\n<table style=\"height: 514px;\" width=\"840\">\n<tbody>\n<tr>\n<td width=\"339\">\u00d8 <strong>BANK<\/strong><\/p>\n<p style=\"padding-left: 40px;\">o\u00a0\u00a0 Multi factor authentication<\/p>\n<p>&nbsp;<\/p>\n<p><strong>\u00d8 INSURANCE<\/strong><\/p>\n<p style=\"padding-left: 40px;\">o\u00a0\u00a0 False claims<\/p>\n<p style=\"padding-left: 40px;\">o\u00a0\u00a0 Algorithms to detect anomalies &amp; patterns<\/p>\n<p style=\"padding-left: 40px;\">o\u00a0\u00a0 Conduction of Forensic audit<\/p>\n<p>&nbsp;<\/p>\n<p><strong>\u00d8 PUBLIC\/PRIVATE SECTOR<\/strong><\/p>\n<p style=\"padding-left: 40px;\">o\u00a0\u00a0 KYE (Know your employee)<\/p>\n<p style=\"padding-left: 40px;\">o\u00a0\u00a0 Fraud prevention software<\/p>\n<p style=\"padding-left: 40px;\">o\u00a0\u00a0 Lay down of strong laws<\/p>\n<\/td>\n<td width=\"339\"><strong>HEALTH CARE<\/strong><\/p>\n<p style=\"padding-left: 40px;\">o\u00a0\u00a0 Payment integrity<\/p>\n<p style=\"padding-left: 40px;\">o\u00a0\u00a0 Advance analytics<\/p>\n<p><strong>OTHERS<\/strong><\/p>\n<p style=\"padding-left: 40px;\">o\u00a0\u00a0 Departmental rotation of employees<\/p>\n<p style=\"padding-left: 40px;\">o\u00a0\u00a0 Segregating accounting duties<\/p>\n<p style=\"padding-left: 40px;\">o\u00a0\u00a0 Guidance from forensic experts<\/p>\n<p style=\"padding-left: 40px;\">o\u00a0\u00a0 Setting up reporting system<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"Normal_Forensic_Audit_Approach_or_Methodology\"><\/span><span style=\"color: #000080;\"><strong>Normal Forensic Audit Approach or Methodology<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Data collection with respect to correct sources and validation of the data &amp; documents<\/li>\n<\/ul>\n<ul>\n<li>Record keeping in the form of hard as well as soft copies in the encrypted format<\/li>\n<\/ul>\n<ul>\n<li>Identifying fraudulent transactions &amp; potential fraud<\/li>\n<li>Assess the quantum of fraud<\/li>\n<li>Differentiate between genuine business failure and fraud<\/li>\n<li>Evaluate the likely recourse available to the bank<\/li>\n<li>Need for further investigation\/ action by the bank<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Step_by_Step_Approach_for_Methodology_of_Forensic_Audit\"><\/span><span style=\"color: #000080;\"><strong>Step by Step Approach for Methodology of Forensic Audit <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><strong>Step-1:<\/strong> Information available on Public domain : Legal cases by or against the company, fraud history, Promoters, background etc.<\/li>\n<li><strong>Step-2:<\/strong> Information Provided by Bank: Bank statements, Loan documentations, Stock statements, committee of creditors, minutes etc.<\/li>\n<li><strong>Step-3:<\/strong> Information Provided by Company\u2019s Management: Financial data, accounting software, operational procedures etc.<\/li>\n<li><strong>Step-4:<\/strong> Information review during plant visit: Working of plant, inventory, invoices, employee\/worker\u2019s records etc.<\/li>\n<li><strong>Step-5:<\/strong> Information absorbed while interaction with suppliers &amp; other stakeholders.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"What_is_approach_to_be_follow_for_Data_Collection_under_Forensic_Audit\"><\/span><span style=\"color: #000080;\"><strong>What is approach to be follow for Data Collection under Forensic Audit?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Documents to be collected with a view to submitting it as an evidence in the court of law<\/li>\n<li>Maintaining several records<\/li>\n<li>Originality and authenticity of the documents should be retained<\/li>\n<li>Use of evidence as annexures<\/li>\n<li>Source of information drives the quality of evidence\/ documents<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Assessment_Approach_under_Forensic_Audit\"><\/span><span style=\"color: #000080;\"><strong><u>Assessment Approach under Forensic Audit<\/u><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 255px;\" width=\"813\">\n<tbody>\n<tr>\n<td width=\"339\"><strong>1.\u00a0\u00a0\u00a0 <\/strong><strong><u>Initial Tone<\/u><\/strong><\/p>\n<p style=\"padding-left: 40px;\">\u00d8 Code of Ethics<\/p>\n<p style=\"padding-left: 40px;\">\u00d8 Anti-Fraud Policies<\/p>\n<p style=\"padding-left: 40px;\">\u00d8 Communication &amp; training<\/p>\n<\/td>\n<td width=\"339\"><strong>2.\u00a0\u00a0\u00a0 <\/strong><strong><u>Proactive<\/u><\/strong><\/p>\n<p style=\"padding-left: 40px;\">\u00d8 Forensic Data Analytics<\/p>\n<p style=\"padding-left: 40px;\">\u00d8 Fraud Prevention Techniques<\/p>\n<p><strong>3.\u00a0\u00a0\u00a0 <\/strong><strong><u>Reactive<\/u><\/strong><\/p>\n<p style=\"padding-left: 40px;\">\u00d8 Fraud response plan<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"Scheduled_Work_Plan\"><\/span><span style=\"color: #000080;\"><strong><u>Scheduled Work Plan<\/u><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-23508\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/10\/Picture2.png\" alt=\"Scheduled Work Plan\" width=\"823\" height=\"304\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/10\/Picture2.png 593w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2022\/10\/Picture2-300x111.png 300w\" sizes=\"(max-width: 823px) 100vw, 823px\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_Forensic_audit_Techniques\"><\/span><span style=\"color: #000080;\"><strong><u>What is Forensic audit Techniques?<\/u><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 1285px;\" width=\"811\">\n<tbody>\n<tr>\n<td width=\"339\">1) <strong>Public document reviews and background investigations<\/strong><\/p>\n<p>\u00a7\u00a0 Public Databases<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Reliability of data<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Increasing number of vendors<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 What type of data is available?<\/p>\n<p>\u00a7\u00a0 Regulatory Websites<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Real Estate records; business registrations<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Can vary by industry and state of operations<\/p>\n<p>\u00a7\u00a0 Corporate Records<\/p>\n<p>\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Stock Transfer records; Accounting data; vendors; competitors; customers<\/p>\n<p>\u00a7\u00a0 Internet<\/p>\n<p>\u00b7\u00a0 \u00a0News Sources\/Newspapers<\/p>\n<p>\u00b7\u00a0 \u00a0 Telephone Numbers and Addresses<\/p>\n<p>\u00b7\u00a0 \u00a0Legal Resources<\/p>\n<p>\u00b7\u00a0 \u00a0Search Engines<\/p>\n<p>\u00b7\u00a0 \u00a0Maps<\/p>\n<p>\u00b7\u00a0 \u00a0Government Sites<\/p>\n<p><strong><u>\u00a0<\/u><\/strong><\/td>\n<td width=\"339\"><strong>2)\u00a0\u00a0\u00a0 Interviews of knowledgeable persons<\/strong><\/p>\n<p>\u00d8 Interview vs. Interrogation<\/p>\n<p>\u00d8 Interview the target only after completing the interviews of the peripheral witnesses<\/p>\n<p>\u00d8 Gain additional information with each interview<\/p>\n<p>\u00d8 Evidence from witnesses provides additional leads<\/p>\n<p>\u00d8 Continuous process throughout an investigation<\/p>\n<p>\u00d8 May identify additional witnesses<\/p>\n<p><strong>3)\u00a0\u00a0\u00a0 Confidential sources<\/strong><\/p>\n<p style=\"padding-left: 40px;\">\u00d8 Letters<\/p>\n<p style=\"padding-left: 40px;\">\u00d8 Hotlines<\/p>\n<p style=\"padding-left: 40px;\">\u00d8 Vendors &amp; former vendors<\/p>\n<p style=\"padding-left: 40px;\">\u00d8 E-mail<\/p>\n<p style=\"padding-left: 40px;\">\u00d8 Former Employees<\/p>\n<p style=\"padding-left: 40px;\">\u00d8 Current Employees<\/p>\n<p style=\"padding-left: 40px;\">\u00d8 Customers &amp; former vendors<\/p>\n<p><strong>4)\u00a0\u00a0\u00a0 Analysis of Physical and Electronic evidences<\/strong><\/p>\n<p style=\"padding-left: 40px;\">\u00d8 Protection\/Validation of Evidence<\/p>\n<p style=\"padding-left: 40px;\">\u00d8 Chain of Custody<\/p>\n<p style=\"padding-left: 40px;\">\u00d8 Altered &amp; Fictitious Documents<\/p>\n<p style=\"padding-left: 40px;\">\u00d8 Physical Examination<\/p>\n<p style=\"padding-left: 40px;\">\u00d8 Forgeries<\/p>\n<p style=\"padding-left: 40px;\">\u00d8 Document Dating<\/p>\n<p><strong>5)\u00a0\u00a0\u00a0 Analysis of financial transactions<\/strong><\/p>\n<p style=\"padding-left: 40px;\">\u00d8 Horizontal\/vertical analysis<\/p>\n<p style=\"padding-left: 40px;\">\u00d8 Authorization of new vendors &amp; employees<\/p>\n<p style=\"padding-left: 40px;\">\u00d8 Comparison of employee &amp; vendor addresses<\/p>\n<p style=\"padding-left: 40px;\">\u00d8 Analysis of sales returns &amp; allowance account<\/p>\n<p style=\"padding-left: 40px;\">\u00d8 Management override of controls<\/p>\n<p style=\"padding-left: 40px;\">\u00d8 Different reviews based on known industry fraud schemes<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>In conclusion, financial frauds and white-collar crimes have nearly always occurred in every field and sector, laying the foundation for the development and widespread use of forensic auditing. The expertise of forensic audit professional businesses in the accounting and auditing industries is required for mitigating financial crimes.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>All about Forensic Audit, Its Audit Techniques Forensic Auditing is an independent examine a company&#8217;s financial accounts and establish whether they are accurate, free from any material misstatements, &amp; most importantly to produce any evidence that may be used in court or legal proceedings, forensic auditing is an independent, comprehensive, and scientific procedure. Forensic Audit\u00a0 &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[10021,10083],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/23507"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=23507"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/23507\/revisions"}],"predecessor-version":[{"id":23835,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/23507\/revisions\/23835"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=23507"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=23507"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=23507"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}