"It is basic that if the term audit is used, it entirely deals with banking and finance or property custody. But when you talk about legal matters or investigative processes concerning such, forensic audit is the term to use. Forensic auditing is an accounting method that tracks down evidence committed in a crime involving embezzlement and fraud. This process is important in litigating criminal acts in the court of law. In short, it is an auditing expertise that applies to audit-related actions with legal consequences.
Forensic audit is when a comprehensive goal involving errors in accounting and mapping cash transactions is determined. Lawyers and other figures of authority use this in order to carry out an investigation that needs legal documentation. The process can be a tool against accounting firms that have been negligent in their operations that led to a financial loss of another party. This can be used against public-elected officials who accept bribes, which are a form of corruption. An audit can be done between the party giving the bribe and the official accepting it. In essence, this process is carried out by experts in the field who have degrees in criminology, sociology and other courses that are related. Forensic accountant is the title given to the expert in this field.
After the investigation, a complete detailed information or report is completed. The report will be based on the information collected by the forensic accountant. They give the report based on what they found out while investigating the case. This report is then forwarded to the right authorities or lawyers who requested the investigation. The completed report can be used as evidence in any court of law. A guilty party can be prosecuted easily if this report is done correctly. In addition, these audits are done within a certain period of time. However, there are factors that could delay forensic audit such as non-cooperation of the party being investigated.
Though used interchangeable, forensic audit and audit are actually two distinctive terms that should be classified accordingly. Both may deal with accounting and money, but they have different functions. This process is already systematized so the right reports could be submitted. This has been a requirement of law and the document is evidence in any court of law for cases like embezzlement and fraud. Investigations to fraudulent cases will take so much longer and there is a higher risk that these cases won't prosper if these experts are not involved.
If we talk about legal cases, there is no one who can better handle them than people who are trained handling legal cases. A forensic auditor is, thus, the best person who can assist you if you're having problems with your financial documents..