Forensic audit

In India, forensic audits are conducted by qualified professionals, including Chartered Accountants who specialize in forensic accounting. The Indian Institute of Chartered Accountants (ICAI) plays a significant role in promoting and regulating the profession. Forensic auditors certified by the ICAI possess the necessary knowledge, skills, and expertise to perform forensic audits. They conduct investigations, gather evidence, and provide expert opinions in legal proceedings, aiming to uncover financial irregularities, fraud, and misconduct within organizations.

The potential outcomes of a forensic audit include legal proceedings with the forensic audit report serving as evidence, asset recovery efforts, disciplinary actions against involved individuals, improvement of internal controls, prevention of future incidents through policy revisions and training enhancements, and reputation management by restoring public trust. The specific outcomes will depend on the findings of the investigation and the actions taken by the organization and relevant authorities based on those findings.

Yes, a forensic audit can be conducted alongside a regular financial audit. While a regular financial audit focuses on ensuring compliance with accounting standards and verifying the accuracy of financial statements, a forensic audit specifically investigates potential fraud, financial misconduct, or irregularities. Conducting both audits concurrently allows for a comprehensive review of financial records, internal controls, and potential irregularities. It provides a broader assessment of the organization's financial health and helps in detecting any fraudulent activities or identifying areas of concern that may require further investigation.