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Forensic Accounting and Auditing
Accountants look at the numbers, where as Forensic Accountants look behind and beyond the numbers.

Financial frauds have from time immemorial affected all establishments and no one is immune to frauds, but they often go undetected due to inadequacies in the system. Recent happenings in most parts of world has exposed the growing greed of human being and art of camouflaging of accounting facts through deception by indulging in fraud and manipulation, depending upon the position that one holds. Alarming increase of financial fraud, inability of internal audit and limitation of statutory audit to sniff out the financial fraud has given rise to new profession known as Forensic Accountant.

Forensic Accounting has a focus on prevention, detection and investigation of financial frauds and assisting in litigation to support booking the wrong doers.

In Nutshell Forensic Accounting looks at the accounting in a wider perspective rather than in different segments such as data entry, record keeping, preparation and finalization of accounts.

Forensic Audit is focused Investigative Audit in search of financial fraud by finding the inadequacies and shortcomings in the existing system and block the loopholes. Forensic Audit starts with an understanding of complete commercial activity and involves the following:-
  • Evaluate the transactions in a manner they are recorded & should have been recorded
  • Investigate the inconsistencies prevalent from the origin till the finalization of transaction
  • Examine the linking of each transaction till its finalization
  • Establishing the inconsistencies and missing links
Forensic Audit is not influenced by:
  • Faithful creation of ingenious theories
  • Blind acceptance of projected statements
  • Blind acceptance of circumstantial evidence without cross-examination
  • Misguided intuitions
The Forensic Auditor has professional knowledge coupled with the Skill and Knack to Investigate, evaluate and examine the accounting transactions thereby linking Data, Knowledge, and Insight together to detect financial fraud and prevent potential wrongdoings.