Forensic auditing is the use of audit techniques and procedures to evaluate the fraud risk in the financial information. Practicing accountants implement audit procedures like inquires analytical tools and inspection. Based on the results of assessments the auditors may change the procedures of his investigations into suspected fraud or actual fraud. Irrespective of his planned procedures auditors or accountants are requires to implement some specific procedures whether they suspect fraud or not. Such procedures may include checking legitimacy of journal entries, evaluating correctness of management estimates and possibility of biases in such estimates.
The Association of Certified Fraud Examiners reports that fraudulent activities cost American business approximately 7% of total revenues in 2008. Usually qualified accountants or auditors are not forensic experts. But when such people also gain expertise in criminology they become forensic experts.
Usually fraudulent activities are concerned with two types of misappropriations that are misrepresentation in financial information and misappropriations of assets.
An entity may misrepresent in financial information using different techniques like omitting, falsifying, misstatement etc. and misappropriation of assets may be achieved by cash embezzlement, using entity assets for personal benefit, kick backs etc.
Forensic auditor will look into trails of fraud and collect the evidences on its way.
These evidences will help forming conclusion based on investigation. And they will report to the concerned authorities for the appropriate action.
Forensic auditor consultant will provide you information on the governance structure internal audit function and enforcing a written code of conduct. An effective governance structure will provide a strong sense of maintaining professional behavior among the employees. Code of conduct will help employees to ascertain what is wrong and unfair. In conclusion I can say that they may be information about Forensic Auditing and Forensic Auditing Consultation.