As a result of the development of the business, a series of specialized fields in accounting has evolved. Forensic accounting is one of the recent trends in the corporate sector. Forensic Accounting is the part of financial analysis that is used to examine the quality of accounting reported by a company: the more faithful it is the reflection of the business reality behind it, the higher its quality.
The forensic analysis of accounting is a key issue because, when analysing a company, the reported accounts can only be trusted if their quality is at a minimum level. The lower its quality, the greater the distrust.
The Forensic Accounting expert is the specialist in accounting, a discipline that is responsible for the control and recording of the expenses and income of a company, applied to the resolution of legal proceedings assisting judges and courts.
The need to apply forensic auditing
The need to implement forensic practices not only to support judicial processes but also as a preventive tool to mitigate the risk of being exposed to fraud or corruption should be highlighted.
Data analytical tools with guaranteed success
The team of CAC selects the best tools and solutions based on the situation in your company, their approaches range from traditional paper-based work to ultra-modern and efficient advanced analytics approaches. Forensic accountants rely on a risk-oriented and data-analytical approach.
Examples of fraud scenarios and our data analytical audit procedures
Depending on the facts and the subject of the investigation, forensic accountants providing Forensic Accounting Services in India carry out various analyses to identify irregularities (e.g., white-collar crime). The selection of the appropriate audit procedures takes place in close coordination with the client to be able to address the specifics of the case and company.
An essential task of forensic scientists is also to document and explain the facts so precisely that they can be used in an evidence procedure in court. Forensic experts in accounting are therefore not only used as part of the audit but also in more specific cases, such as due diligence, insurance issues, or disputes between the owners.
In contrast to an audit, the result of a forensic examination is not public, but – depending on the facts – is initially only communicated to the client or the authorities. These then decide how to proceed.
The principle of trust
The principle of trust applies in car traffic – every road user can assume that the others will comply with the basic traffic rules. If you couldn’t rely on it, you would hardly be able to drive a meter. The auditor must also be able to rely on the fact that the company is operating within the legal framework. Otherwise, he would have to check every single transaction for a forgery and would hardly be able to finish the check. Wrong drivers are not responsible for the test – the forensics team is waiting for them. We suggest you consult CAC to conduct Forensic Accounting & Fraud Detection in your company.