It is a shared opinion that the prevention activity is a corporate strategy, which can considerably reduce the costs of damage suffered as well as the fraudulent act now carried out; despite this, many companies commit the naivety of not adopting fraud management. For example, it is essential to contact top audit consulting firms in India so that experts can detect possible fraud in your company as soon as possible.
Along with this, Forensic accounting services in Delhi can also play a huge role in identifying fraud or potential sources of misappropriation in the financial statements of your company.
Therefore, it is vital to provide a deterrent, establishing first, that there is a clear visible and rigorous anti-fraud policy or robust internal control system, determining clear principles and a consequential corporate culture, and subsequently a system of sanctions against those who engage in fraud.
When fraudulent facts are presented in an organization and they are intended to be clarified in legal instances, the forensic audit must be ordered by a judge for it to be legal, and there must be a complaint by the party that feels affected.
The forensic audit or accounting can have as a field of action both the public and the private sector, its essential purpose being the investigation of cases in which there are indications or evidence of improper use of economic resources.
A forensic accountant is usually requested to prevent or detect financial fraud and collect probative evidence in situations that are presumed fraudulent.
The accountant, backed by his knowledge and professional skills, may carry out investigations and calculations that allow him to determine the existence of irregular events, as well as their amount, if any, to assess whether the initiation is justified of judicial litigation.
In the public sector, forensic accounting can serve as a valuable support element for government audits contemplated according to the corresponding laws, either in the field of centralized or decentralized administration, with special emphasis on crimes related to administrative corruption.
Of course, forensic accountants also operate in the field of private organizations, the range of action being extremely wide, as can be seen from many notorious corporate frauds.
Likewise, a forensic accountant may be required as an expert witness in court, as he is recognized as a professional with knowledge of certain financial matters in the case of fraud, and whose contribution may serve to establish a truth.
A work of great relevance for forensic accountants occurs when their services are required to render a report in a legal dispute before a court.
Multiple factors cause fraud, so that is where the importance of prevention lies, as a tool against fraud since controlling their existence and probability reduces the probability of errors.
Three factors cause errors (fraud), intentional or not in financial information, and are the following:
- Lack of control,
- Lack of auditing and
- The institution’s control environment
A forensic accountant can act as a supporting factor in fraud investigations, for example, when he provides his services in the prevention and/or detection of financial fraud or when he participates as an expert witness in legal litigation, as well as being required as an expert forensic at the request of an interested party or by a court of law.
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.