Forensic Audit--Overview

Forensic Audit--Scope and Challenges

Alice Singh

The Learned Author in this Article provides detailed information upon the new and fast emerging field of Forensic Audit.

To be a forensic auditor, you have to have a knowledge of fraud, what fraud looks like, how it works, and how and why people steal.

Quoting the words of Sir Robert J. Lindquist, Author of Fraud Auditing and Forensic Accounting.

This entire statement revolved around one word, Fraud which opened another door of work opportunities for an Auditor, The Forensic Audit.

1. So Lets first start by understanding the Unlawful word Fraud

As per Companies Act, 2013, Explanation to Sec 447 of Chapter XXIX

Fraud in relation to affairs of a company or any body corporate, includes any act, omission, concealment of any fact or abuse of position committed by any person or any other person with the connivance in any manner, with intent to deceive, to gain undue advantage from, or to injure the interests of, the company or its shareholders or its creditors or any other person, whether or not there is any wrongful gain or wrongful loss;

In layman terms,

It refers to wrongful or criminal deception intended to result in financial or personal gain.

2. Now moving on to the Topic that got its birth to Expose & Eradicate FraudThe Forensic Auditing

Its basically the integration of Forensic, Accounting, Legal, Procedural and Financial expertise for the fight against fraud.

Well then you must be thinking that since it is also a kind of Audit then what distinguishes it from a General one?