What are the basics of forensic auditing?

Forensic auditing is a word that often comes up in the accounting world. You do not want to be prosecuted for fraud and have nothing to show as evidence. This is one of the reasons why a forensic audit is performed. One company that performs forensic audit is, for example, Reanda Netherlands. They make sure that everything is in order and that nothing is overlooked. In this blog we will tell you all the basics of forensic auditing.

The definition of forensic auditing

Looking at the definition of a forensic audit, forensic accounting is an investigation into the financial situation and administration of a company. This mainly involves looking at whether there is any fraud. A forensic auditor ensures that he/she performs their work in such a way that if a lawsuit is filed for fraud, there is enough evidence. Forensic auditing is therefore different from an internal audit, because here the company itself looks and reports on its own financial situation. Here, a company looks mainly at its own forecasts and financial decisions for the future.

Forensic audit checklist

As mentioned earlier, various topics can be addressed during legal proceedings. A checklist for a forensic audit is often very important, especially for its preparation. It must be clear what the purpose of the audit is, what type of fraud must be investigated and all participants in the process. There are several ways to perform a forensic audit, but a number of things are important to take into account. Think of issues such as: 

• Audit preparation

• The background information of the company

• A detailed report 

• Financial Investigation

The costs of a forensic audit

In many cases, companies choose to outsource a forensic audit to ensure that the administrative records are accurately maintained. This also ensures that no mistakes are made that could have major consequences. But what exactly are the costs for a forensic audit? That depends of course on which company you decide to go for, but the prices will not differ much. It also depends on the work that you want to outsource, because it is also possible that you only want to outsource one part. The costs will then be much lower. Think about $70-$100 per hour, but if you want to outsource everything, an estimate will be made for you. 

The Association of Chartered Certified Accountants (ACCA)

Do you like working in this sector or are you already busy studying? Then there are several professions you can choose for. In this sector, it is important that you gain practical experience, so that you have worked with different cases. If you have already gained some work experience, you can opt for the ACCA programme. This is a programme for students that offers continuous support during your studies. Approximately 550,000 students from all over the world already take part in this study. Make sure you follow this programme through an ACCA accounting firm, so you can be certain of receiving the right certificates.