FORENSIC AUDITING

[khurram_jamal]

ASSALAM-u-ALIEKUM

ANY MAN COULD TELL ME ~ PROVIDE ME COMPLETE INFORMATION ABOUT

[]FORENSIC AUDITING[]

PLEASE DON,T DO SIMPLY THAT YOU SEARCH IT IN GOOGLE AND PASTE HERE ONLY A USELESS LINK. I WANT SOLID INFORMATION

AWAITING FOR RESPONSE

THANKS[V]

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*REMEMBER****GOD HELPS THOSE WHO HELPS THEMSELVES****

WISH YOU ALL THE BEST

KHURRAM JAMAL SHAHID (MBA)(CA-Module-C)

[heavenspk]

Dear,
Forensic auditing is a new discipline in the modern auditing. it relates to the investigation of fraud that has occured into the organization or in the transaction (what the NAB is doing in Pakistan). There is a spececialization in this field and the Association of Certified Examinars is a prime international body that awards Forensic auditing certifications.
Kamran Abbas
Riaz ahmad and comapny
chartered accountants
Islamabad

Kamran Abbas

[fahim239]

hi Mr.heavenspk can you please give me the website address of the Association of Certified Examinars.



fahim

[khurram_jamal]

Hi THANKS HEAVENSPK

YAR PLEASE CAN YOU SEND ME THE DETAIL IN MY YAHOO ID as i can study it in detail or give any Refernce.

Tell me that are you in RIAZ AHMAD & CO CAs then you will really have knowledge of AUDITING. Plz let me know soon

thanks

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*REMEMBER****GOD HELPS THOSE WHO HELPS THEMSELVES****

WISH YOU ALL THE BEST

KHURRAM JAMAL SHAHID http//www.khurram.gq.nu

[khurram_jamal]

any one tell about FORENSIC AUDITING

[dammypopson]

hello i need detailed materials on FORENSIC AUDITING, can anyone please help, the materials could be routed through my email address as attachment.

jop

[ali4u3]

The Nature of Forensic Accounting

Forensic accounting draws its name from association with a court of record; forensic accounting and auditing are performed to accomplish an objective that involves a judicial determination. Examples of forensic accounting objectives include computation of asset values in a divorce proceeding; assessment of damages caused by an auditor's negligence. fact-finding to see whether an embezzlement has taken place, in what amount, and whether criminal proceedings are to be initiated; and the collection of evidence in a criminal proceeding. The forensic engagement is distinguished by engagement objective. emphasis on gathering evidence, and the application of a variety of techniques often custom-developed to the requirements of the specific engagement.

Characteristic Forensic Auditing Steps

According to Bologna and Starr (1989, pp. 6-7), an effective fraud auditor should be able to complete the following steps with some degree of confidence [1]

Design scenarios. of potential fraud losses based on identified weaknesses in internal controls;



Identify questionable accounts. account balances. and relationships between accounts, for variances from current expectations and past relationships (historical ratios);



Identify questionable transactions-that is, too high. too low, too often. too rare. too much. too little. odd times. odd places, odd people;



Distinguish simple human errors and omissions in entries from fraudulent entries (intentional error versus unintentional error and ignorance);



Review questionable transaction documents fur peculiarities such as raising of amounts; forgery; counterfeiting; fake billings; invoicing or claims; destruction of data; improper account classifications; irregularities in serial sequences, quantity, pricing. extension and footings; or substitution of copies for original documents;



Gather and preserve evidence to corroborate asset losses. fraudulent transactions, and financial misstatements; and



Document and report a fraud loss for criminal, civil, or insurance claim purposes.


The growth of forensic auditing has been further be regulatory developments. In the United Kingdom, auditors must now notify cognizant regulators of material irregularities, and of report qualification, after having first advised the client. Similarly, in the United States, a proposed revision of the Wyden Bill requires notification of the Securities and Exchange Commission (SEC) in cases of material uncorrected irregularities; prospects for the bill's eventual passage are considered uncertain.

The Forensic Audit and Audit Skepticism

Successful performance of the aforementioned steps requires audit skepticism, that is, doubt or disbelief. All persons on an audit engagement, especially senior personnel, should practice skepticism. Doubt should obtain during the entire engagement; however, doubt is more likely to increase in importance toward the end of an engagement.

United States professional literature makes 33 references to audit skepticism and provides guidance. For example, the auditor should neither assume that management is dishonest nor assume unquestioned honesty. The auditor should recognize that conditions observed and evidential matter obtained, including information from prior audits, need to be objectively evaluated to determine whether the financial statements are free of material misstatement. When an auditor concludes that policies or procedures are ineffective, the response may involve heightening professional skepticism, assigning more experienced staff, and changing the nature, timing, and extent of substantive procedures.

The SEC long ago urged an auditor to "carry out his examination with an attitude of healthy skepticism which seeks corroboration of explanations offered for matters that have aroused questions in his mind, particularly when those explanations come from persons who could have personal reasons for diverting further inquiry (U.S. Securities and Exchange Commission, ASR 153).


Never seek advice from a Chartered Accountant. They are trained to find problems not solutions.