Posted on April 5, 2021
Understanding the Process of Forensic Accounting Audit for Business
Forensics involves scientific and technical crime detection techniques, and forensic accounting refers to financial frauds. However, accounting audits are pretty different than statement audits and follow set protocols. If you are planning to conduct one at your workplace, here’s what process the forensic audit expert will follow.
Start with Investigation
Like every other investigation, a forensic accounting audit starts with collecting evidence of suspicious activities. The data under the scanner include discrepancies, red flags, staff interviews, finding the culprit, and the process behind the fraud. Then, they create hypothesis and follow-up plans to continue evaluations, followed by developing the action plan.
Submitting the Report
After gathering the required information, the audit expert prepares the case study and submits the final findings to the authorized. Using this data, the accountant proceeds to handle the case, outlining future steps for the company. Besides, the accountant also recommends how the company should prevent fraud in the future. The report submission is followed by preparation for court proceedings.
Legal Actions and Proceedings
This is the final step of a forensic accountant’s job. The professional’s findings are used as certified testaments against the culprit. Here, the accountant presents the evidence that led to the finding. The professional also provides understandable explanations to financial documents, evidence, and other terms used during the proceedings. Based on the findings and presentation, the court prepares the final decision in the case.
In short, a financial accounting audit requires the accountant to combine numerical and investigative skills to determine the causes of doubtful financial activities. And, you can deploy forensic accounting services in Sydney for the most accurate audits for your business.