Forensic Accounting, Audit & Investigation

Odyssee · 09-25-2009, 08:20 PM

What is the difference between Forensic Accounting, Forensic Audit and Forensic Investigation? Please provide the answer with examples.

kamranACA · 09-25-2009, 08:48 PM

Odyssee

Did the googling not work properly?

Regards,

KAMRAN.

faisal_desperado · 09-26-2009, 06:15 AM

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by Odyssee
 What is the difference between Forensic Accounting, Forensic Audit and Forensic Investigation? Please provide the answer with examples.
<hr height="1" noshade id="quote"></blockquote id="quote">

Dear Odyssee,

Forensic Accounting prevails over traditional Accounting / Auditing, infact, Accounting, Auditing and Investigations are terminologies which are required to be based by Farensic Accountant while extenuating white collar crimes such as embezzlements, peculations, misappropriations, malfeasance, defalcations and misfeasance etc.

Forensic Accountants are required to investigate about those transgressors who are involved in these actus reus, thus Forensic Accounting, Auditing and Investigations are complected with each others in such a way that no differentiation could be made while the tasks of Forensic Accountant are concerned.

These terms have now been much popular through out the world and any searh engine could sufficiently provide detail over the said topic.

Best Regards,

Faisal

awaisaftab · 09-26-2009, 02:10 PM

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by faisal_desperado
 <blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by Odyssee
 What is the difference between Forensic Accounting, Forensic Audit and Forensic Investigation? Please provide the answer with examples.
<hr height="1" noshade id="quote"></blockquote id="quote">

Dear Odyssee,

Forensic Accounting prevails over traditional Accounting / Auditing, infact, Accounting, Auditing and Investigations are terminologies which are required to be based by Farensic Accountant while extenuating white collar crimes such as embezzlements, peculations, misappropriations, malfeasance, defalcations and misfeasance etc.

Forensic Accountants are required to investigate about those transgressors who are involved in these actus reus, thus Forensic Accounting, Auditing and Investigations are complected with each others in such a way that no differentiation could be made while the tasks of Forensic Accountant are concerned.

These terms have now been much popular through out the world and any searh engine could sufficiently provide detail over the said topic.

Best Regards,

Faisal
<hr height="1" noshade id="quote"></blockquote id="quote">

Good contribution.

Faisal you sent me an e-mail ramzan but it is still unrepplied. I shall reply you in near future.

Thnaks and regards,

Awais Aftab

rabia-k · 09-26-2009, 03:52 PM

Fraud auditing involves a specialized approach and methodology to detect fraud i.e. you are auditing for evidence of fraud. the purpose is to approve or disapprove whether fraud exists. historically, forensic accountants are called in after evidence or suspicion of fraud has surfaced.

source Fraud auditing and forensic accounting
By Tommie Singleton, Aaron Singleton, Jack Bologna, Robert J. Lindquist, GOOGLE BOOKS.

faisal_desperado · 09-26-2009, 04:33 PM

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by awaisaftab
 <blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by faisal_desperado
 <blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by Odyssee
 What is the difference between Forensic Accounting, Forensic Audit and Forensic Investigation? Please provide the answer with examples.
<hr height="1" noshade id="quote"></blockquote id="quote">

Dear Odyssee,

Forensic Accounting prevails over traditional Accounting / Auditing, infact, Accounting, Auditing and Investigations are terminologies which are required to be based by Farensic Accountant while extenuating white collar crimes such as embezzlements, peculations, misappropriations, malfeasance, defalcations and misfeasance etc.

Forensic Accountants are required to investigate about those transgressors who are involved in these actus reus, thus Forensic Accounting, Auditing and Investigations are complected with each others in such a way that no differentiation could be made while the tasks of Forensic Accountant are concerned.

These terms have now been much popular through out the world and any searh engine could sufficiently provide detail over the said topic.

Best Regards,

Faisal
<hr height="1" noshade id="quote"></blockquote id="quote">

Good contribution.

Faisal you sent me an e-mail ramzan but it is still unrepplied. I shall reply you in near future.

Thnaks and regards,

Awais Aftab
<hr height="1" noshade id="quote"></blockquote id="quote">

Dear Awais,
As far as i remember, i said to reply you subject to the availability of time, i hope that you will be replied as soon as i get any specific authentication.

Regards,

Odyssee · 09-26-2009, 10:47 PM

Thank you all for commenting.

Though I can find the definitions easily, what I haven't yet clearly understood is the difference between them.

The text book definitions are as follows

Forensic Audit The examination of evidence regarding an assertion to determine its correspondence to established criteria carried out in a manner suitable to the court.

Forensic Investigation Involve using specialized investigative skills to carry out enquiries conducted in such a manner that the outcome will have application to a court of law.

I understand that Forensic Audit and Forensic Investigation both fall under Forensic Accounting. But what distinguishes forensic audit from a forensic investigation? Both definitions essentially speak the same thing.

To put it in another manner, when will an activity be called forensic audit and when will it be called forensic investigation? or are they one and the same thing?

kamranACA · 09-27-2009, 12:06 AM

Odyssee

Do you understand the difference between audit and investigation or audit and a due diligence evaluation? I hope you must have the required insight of the difference in generalized terms. Similar is the difference between the two you are inquiring.

In Pak most of insurance companies utilize the services of forensic accountants for the sake of having a reliable estimation of the high value insurance claims. You know in number of cases people destroy their useless stocks and assets deliberately and lodge substantial claims to insurance companies to take undue benefits. For this purpose they sometimes also destroy the records that can lead a straightforward estimation of the loss. In such circumstances, forensic accountants prove to be the most effective tool.

There can be so many other examples as well where forensic accounting finds significant relevance. Frauds in branch offices (like banks or multinational companies), embezzlement by employees, falsification of records by employees, undue utilization of powers, undue induction in public sector or by those who are working in fiduciary capacity, frauds by stock brokers and financial institutions with public, so forth and so on.

Forensic accounting is typically different from normal accounting since it is based upon a known or suspected act that has to be fully substantiated. What I understand unlike a normal assurance engagement, the scope of forensic audit or investigation is too much specific and concentrated and entails much larger amount of assurance. It is normally conducted on court's order or for proving a point in court even if it is not required by the court. However, it may also be conducted to safegaurd the interests whether or not the case goes to the court.

Forensic accounting includes forensic audits, forensic reviews, forensic investigations, etc. These all are in principle one and the same thing with thin conceptual boundries. For example in forensic audit you base your work on incomplete records, historical information, indirect information, market norms and standards, information and explanation that may be collected from the auditees or elsehwere etc. In forensic investigations you may have to base your work on finding out involved persons, related or supporting people, knowing the details of crime by enquiries, collecting evidences from outside sources like police, hospital reports (in some cases), lab reports, post mourtam reports, fire fighting people, records of other people that may have any link, interviews, visits, meetings, research, so forth and so on.

On conclusion of both the result comes in the shape of the exact information of crime or suspected act or fraud etc, the approach and methodoly used in such crime or fraud or suspected act, the people who planned and executed it, the required figures and data in the shape of information, reconciliation and analysis etc, and a presentable evidence that can make a reliable basis to the case for court or other settlement.

I hope you would have a bit of over view of the needed information.

I have conducted a lot of commercial and financial due diligence studies and investigations of very famous companies and institutions as team member or team leader in local teams or with consortia of foreign consultants like Atkins and a few others. However, unfortunately I have not so far done any forensic investigation. I hopw it will be a very interesting experience as well.

Regards,

Kamran.

Mujahid · 09-27-2009, 01:11 AM

@^
So in simple terms, we need to be Sherlock if we want to become a forensic accountant. [D]

Mujahid · 09-27-2009, 01:13 AM

Mein aaj hi se jasoosi nawil parhna shuru kar doonga. Jamshed Series kaisi rahegi? [P]

Ali RAZA · 09-27-2009, 02:37 AM

kia tumhara har maamle mein taang arana zaroori hai?? SHABAZ BHAI

Mujahid · 09-27-2009, 04:27 AM

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by Ali RAZA
 kia tumhara har maamle mein taang arana zaroori hai?? SHABAZ BHAI
<hr height="1" noshade id="quote"></blockquote id="quote">

Tumhein bill aata hai?