Forensic accounting is the special practice area which involves the use of accounting skills to investigate fraud or fund pilferage and to analyse books of account with supporting documents for aid in legal proceedings. As the impact of fraud keeps pressure on the bottom line, it is important to identify misconduct and plug the gap.
Forensic accounting requires knowledge of accounting, auditing and investigation.
Services includes fraud investigation, Asset discovery and tracing,fund diversion, Design & implementation of fraud risk management framework.
An auditor can follow a nine-step methodology for fact finding in case of forensic audit engagements: -