How Businesses Can Prepare for a Forensic Audit
Introduction: Defining Forensic Audits and Their Importance A forensic audit is an investigation that is conducted to identify any possible financial fraud, misappropriation, or financial misconduct by a business. A possible positive outcome would be to confirm financial statements are in fact true and correct or as the company has presented them. More typically, forensic audits, in contrast to a normal audit that tests some transaction volumes, refer to an audit that must cover the complete set of transactions, potentially review serious misbehaviour or fraud. The audit requires total scrutiny of all financial documents and actions, and may even involve asking employees some difficult questions. Why Businesses Should be Ready for Forensic Audits To be clear, a forensic audit can happen to businesses quickly and there can be little to no warning. If you are a company that could be subject to a forensic audit, regardless of the nature of the audit - prompted by fraud detection, re...