Regarding the phases or stages that must be followed in a forensic audit, it is emphasized that it is important to take into consideration that the forensic audit in its planning and execution must be conceived with total flexibility, since each case of fraud identified through forensic accounting services in Delhi is unique and will require procedures designed exclusively for each investigation, since that although there may be similar events, the existence of identical cases will not be possible.
However, we have summarized some of the processes through which forensic accounting firms in India go when performing a forensic audit. To learn more about this topic, keep reading!
- Planning
The planning stage is the moment in which the objectives of the engagement are set, and the audit execution strategies are established, the nature, scope, and timing of the tests to be promoted are determined.
In planning, in addition to the general focus of the work, the work team that could be participating and its attributions, the use of external specialists if required, the preparation of audit programs according to the objectives, should be specified.
Along with this, the auditor must know the procedures to be carried out, as well as careful evaluation of all signs of fraud that may exist, should be done.
The nature and extent of planning activities will vary according to the characteristics of the case under investigation, and many times a large part of the success of the audit will depend on the work done in this phase.
To organize a forensic audit, you should take the pertinent time, avoiding situations such as excessive planning, or on the contrary, improvisation.
- Fieldwork
After adequate planning, the second phase of a forensic audit corresponds to the fieldwork itself, a phase in which the procedures that were designed in the planning will be carried out.
The procedures programmed in the planning may vary, and therefore must be flexible, since in the execution of the work of a forensic audit one must advance with sagacity and caution as results are obtained, which may require subsequently modifying the plan’s initials.
In the fieldwork, the facts must be defined and typified, the evidence must be collected, a chain of custody of the documentation must be established, and of course, the evidence obtained must be evaluated.
- Results delivery
The communication of the results will be done through the delivery of the report, whether they are partial or final.
The reports must be objective, precise, and supported by documentary support, and each finding must have a description, referring to the evidence obtained and indicating the corresponding conclusion.
The expert report must specify the reason for which it is carried out, the detailed list of the examinations carried out and the conclusions reached in the expert opinion, taking care that opinions or conjectures are not issued, since although the report will be a basic evaluation, the final decision of the case will be in the hands of the judge of the case.
- Follow-up of the case
As noted, the legal decision of the case subject to expert opinion corresponds to judicial instances, but the forensic auditor must be careful that the results of the investigation carried out are considered in a pertinent manner.
So, this was all about the phases of a forensic audit. By now, you must have understood what the important things are, and why one of them is to timely contact forensic accounting firms in India.
This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise. AKGVG & Associates does not intend to advertise its services through this.