Posts
Scrutinizing the accounting records of a company is necessary from time to time. This is done in order to uncover financial crimes that an individual may have carried out. The process involves looking into depth the various transactions that may have taken place within a set period of time and then try to bring out the malpractices. Forensic audit is normally ordered through a court of law by an interested party in a company or business.
This process is undertaken by a trained professional referred to as forensic auditor. This is a trained accountant with skills in criminology and prosecution of fraud. In various countries, accountants are required to be registered with the accounting bodies in the regions and therefore forensic auditors are no exception to this.
Traditionally the process involved scrutinizing piles and piles of paperwork while seeking the relevant information. The information sought after is in regard to acquisition and disposal of various assets, amounts realized and the systems followed in the process. This has however changed with the current technological advances. There are various accounting programs which are equipped with auditing tools that can be used effectively to seek information quickly. These programs are equipped with SQLs and as well have data mining capabilities.
The process starts with the collection of various accounting records to be audited. The records are then scrutinized by making a follow up of the various transactions that have been indicated. This is then used to determine the relationship of various accounting aspects of the business. The information acquired can as a resulted be used to know if there is any fraud, misappropriation of funds or non disclosure of assets.
During divorce proceedings, the court may order for an auditing on the finances and assets of the parties in question. This may be upon the request of one of the individuals or when it is considered that either of the parties has withheld vital information from the court. This information is essential in making settlements and also in determination of the amounts to be paid for children and spouse support.
Director or shareholders of a company can also request for an audit. This is done when there are indications of financial mismanagement within the company. It may be inform of fraud or embezzlement of funds by employees of the company. To have this done, a court order may be sought or have a case filed in court. The culprits if found guilty are made to refund the amounts embezzled.
Fraud is a normal occurrence in both public and private sectors. This may be in form of bribes or money laundering with the intent to receive favors. The individuals suspected of involvement in such deals are normally taken through an audit to determine the truth of the matter. Evidence gathered in such instances is then presented before court when pressing for criminal charges.
A forensic audit is conducted by both private and public auditors. The private auditors charge fees for their services according to the complexity of the case in question. Public auditors on the other hand are appointed by courts to carry out investigations on its behalf.
This process is undertaken by a trained professional referred to as forensic auditor. This is a trained accountant with skills in criminology and prosecution of fraud. In various countries, accountants are required to be registered with the accounting bodies in the regions and therefore forensic auditors are no exception to this.
Traditionally the process involved scrutinizing piles and piles of paperwork while seeking the relevant information. The information sought after is in regard to acquisition and disposal of various assets, amounts realized and the systems followed in the process. This has however changed with the current technological advances. There are various accounting programs which are equipped with auditing tools that can be used effectively to seek information quickly. These programs are equipped with SQLs and as well have data mining capabilities.
The process starts with the collection of various accounting records to be audited. The records are then scrutinized by making a follow up of the various transactions that have been indicated. This is then used to determine the relationship of various accounting aspects of the business. The information acquired can as a resulted be used to know if there is any fraud, misappropriation of funds or non disclosure of assets.
During divorce proceedings, the court may order for an auditing on the finances and assets of the parties in question. This may be upon the request of one of the individuals or when it is considered that either of the parties has withheld vital information from the court. This information is essential in making settlements and also in determination of the amounts to be paid for children and spouse support.
Director or shareholders of a company can also request for an audit. This is done when there are indications of financial mismanagement within the company. It may be inform of fraud or embezzlement of funds by employees of the company. To have this done, a court order may be sought or have a case filed in court. The culprits if found guilty are made to refund the amounts embezzled.
Fraud is a normal occurrence in both public and private sectors. This may be in form of bribes or money laundering with the intent to receive favors. The individuals suspected of involvement in such deals are normally taken through an audit to determine the truth of the matter. Evidence gathered in such instances is then presented before court when pressing for criminal charges.
A forensic audit is conducted by both private and public auditors. The private auditors charge fees for their services according to the complexity of the case in question. Public auditors on the other hand are appointed by courts to carry out investigations on its behalf.
About the Author:
You can visit the website saiaudit.com for more helpful information about The Purpose Of A Forensic Audit
No comments:
Post a Comment