subject: What Exactly is a Forensic Audit? [print this page] What Exactly is a Forensic Audit? What Exactly is a Forensic Audit?
We all know that the word "audit" is usually associated with accounting, custody of property, or banking and finance. However, if we are talking about legal matters or the processes of an investigative nature, the more appropriate term is "forensic audit."
A Forensic audit is still involves finances like accounting audits. However loan audits are performed to find crimes about fraud, embezzlement, and a like within a mortgage document. The findings can then be utilized during legal court proceedings, and will play a vital role in fighting against past crimes. Another definition of forensic audit is the process of determining errors in transactions. Most figures of authority and lawyers utilize forensic audits to conduct investigations where legal documentation is needed.
This procedure is a great way to help consumers who worked with a dishonest business. Sometimes, errors and inconsistencies are obvious. However, many other times there is no solid proof to back up a "hunch". This is where a thorough forensic audit truly shines because it can easily find and document fraud.
A forensic audit can also find fraud that was committed against the government. Forensic audits are good opposition against red tape and corruption. Even a small act such as a bribe can be traced to find where the inconsistency lies. Credibility of forensic audits are guaranteed as only professionals conduct these.
After investigations are done, the result is presented through a detailed report and then given to the client for their further use. Usually, it is the authorities who requested the audit or, in some cases, lawyers who will be taking the report. The report will then be utilized as evidence against the party accused of committing the fraud. Once proven guilty, the full extent of the law will be executed and anything that needs to be put to right will be done.
No one is excused from the law. And if the guilty party claims to be unaware of the said fraud they committed, they are not excusable.
The existence of forensic audits promotes integrity among businesses and other parties prone to commit certain frauds. Forensic audits provide quick and excellent assistance to consumers or any party who feel something is not right with their transactions.
