Forensic Accounting and Fraud Detection involves the application of accounting, auditing and investigative skills to examine financial records for evidence of irregularities, misappropriation or fraud. The engagement is designed to identify the nature, extent and impact of suspected financial misconduct.
Scope of Engagement
Typical areas of examination include:
Analysis of financial transactions and patterns
Review of internal controls and segregation of duties
Examination of documentation supporting high-risk transactions
Identification of red flags and anomalous entries
Tracing of funds and asset movements
Methodology
Procedures are tailored to the specific circumstances and may include:
Data analytics and transaction testing
Interviews and information gathering
Reconstruction of accounting records where necessary
Documentation of findings in a structured report
Reporting
The report presents factual findings, quantifies the impact where possible and provides observations that may be used for internal action or further proceedings.