The Importance of Forensic Auditing

Forensic auditing is a key component of what we do. It is important to conduct these audits to make sure financial documents are correct and lawful or to discover any fraudulent activity and to gather evidence to be presented in court proceedings. Fraud may go unnoticed or be difficult to uncover. As forensic auditors, we conduct investigations for your company that may be costing you large amounts of money that may otherwise go unnoticed or be difficult to track-down. We track down the source of the leeching funds and gather the evidence either proving or disproving fraud.

So, you may ask why is forensic auditing so important? Why does forensic auditing need to be completed on a regular basis? Do I need to have a forensic audit conducted? Fraud can present itself in several forms and can bleed a company’s resources and we can address all of them. From money laundering and embezzlement, asset or cash misappropriation such as forged invoices and fake payrolls, breaches of contract, falsified financial statements, to tax fraud, and more. Fraud is a serious matter and not just any accountant can perform these investigations. They require auditors with experience uncovering these accusations, auditors that can sift through large amounts of financial records to discover the problems, and those that understand the legal process to follow through.

During this audit, we first speak with the client to understand the need for the audit and plan the actions to take place. We then determine if and where the losses are and the amount of funds that are missing. We must discover how the concealment of the fraud has taken place to patch any holes and stop leaks. Then we will identify who the guilty party is and gather as much intel on them as possible to use as evidence. Our auditors do this by examining all necessary financial documentation and records to discover inaccuracies and any discrepancies.. We also will determine the amount of time the fraud has been taking place. During that process, we collect the evidence and then state our findings to our client. Finally, if needed, we will serve as expert witnesses and present these findings and evidence in court. We do not stop just by completing the audit, we will continue to work with the client to help them take appropriate action to keep it from happening again.

Forensic auditing is not just a tool used to discover and incriminate fraudulent activity. It is also an excellent tool to use for a thorough examination of financial documentation to ensure the company's finances are in order and are on-track, without any waste. It also insures against any fraud and to catch discrepancies early if there are any evidence of it, before it turns into a larger problem. Having these audits performed on a regular basis will keep the company’s in good financial standings and keeps executives informed.

For more information, contact us.