Forensic accounting also known as financial forensics is a specialty practice area of accounting that describes engagements that result from actual or anticipated disputes or litigation. As per the Oxford dictionary reveals, forensic accounting means the use of accounting skills to investigate fraud or embezzlement and to analyse financial information for use in legal proceedings. Forensic accountants are also referred to as forensic auditors or investigative auditor and often have to give expert evidence at the eventual trial.
Forensic analytics is a four-tier procedure which starts with data collection, data preparation, quantified with data analysis, and concludes with reporting and court proceedings.
CCPL’s methodology for forensic accounting is a tri-dimensional approach in which we ensure:
- Prevention: Steps-up your financial security and avoids loopholes through an active vigil mechanism.
- Detection: Ensures primary and precise fraud detection with use of various analytical techniques from different disciplines.
- Investigation: A hybrid approach that combines multiple methods to look beyond the pre-defined norms and fix the loopholes.
Our forensic service approach includes:
- Anti- Fraud Vigilance: Helping companies prevent fraud or minimize its losses by finding and plugging loopholes in the internal audit and control system at a elementary stage.
- Financial Forensic: Utilization accounting, auditing and investigative skills to analyze a company’s financial statements for possible fraud in conjunction with anticipated or ongoing legal action.
- Digital Forensic: Screening of digital devices, including mobile, computer and laptop, to find and audit unusual mails and documents that can point out a fraud.
- Data Analysis: Identify odd-lot financial transactions by use of data analytics tools and software to inspect and resolve frauds.
Finally, ‘forensic auditing’ refers to the specific procedures carried out in order to produce evidence. Audit techniques are used to identify and to gather evidence to prove, for example, how long the fraud has been carried out, and how it was conducted and concealed by the perpetrators. Evidence may also be gathered to support other issues which would be relevant in the event of a court case. Such issues could include:
- Suspect’s motive and opportunity to commit fraud
- Whether the fraud involved collusion between several suspects?
- Any physical evidence at the scene of the crime or contained in documents
- Comments made by the suspect during interviews and/or at the time of arrest
- Attempts to destroy evidence.