What is a forensic audit?
Forensic audit is an investigation of the financial accounts of one or more individuals in court proceedings for crimes. This type of thorough examination is usually performed by a forensic accountant who is trained as a certified fraud investigator (CFE), certified public accountant (CPA) or authorized accountant. The prepared report is designed specifically for use in court. It is similar to the type of audit carried out by tax collection agencies such as the Internal Revenue Service (IRS) in the United States. It provides an overall picture and detailed analysis of the economic state of the accused party.
Forensic audit can be used in various court cases. These often include embezzlement, fraud, divorce and childcare questions, and in some cases they are used to ensure the motif for murder charges. The audit is usually required by one or both lawyers who argue the case. The auditor may then be appointed a judge who has discussed the case. Investigations would explore the bankfrontSY of the accused individual, annual salaries, shares and bonds and items that have been received or purchased in a given period of time.
The audit could then provide a summary of the value of the holders that the individual has, whether in the form of money, shares and bonds, real estate or private assets. Its purpose would be to find out whether such items could be reasonably owned by someone at the established level of the salary of this position. If the value of the individual's assets significantly exceeded adequate expectations, a more detailed audit would most likely be performed.
Court with former American Senator Ted Stevens from State on Alaska is an example of the use of forensic audit in the Criminal Court. Senator Stevens was accused of receiving bribes in the office from a large oil company working in the state he represented. These bribes were reportedly in the form of home improvements and large personal gifts thatHe was provided that he could not buy reasonably at the time of their installation. The case was eventually rejected on the basis of the way prosecutors continued to prove the illegality of such gifts.
Another common use of forensic audit is the inspection of mortgage documents. This is known as Forensic Loan Audit . This type of service can be initiated by the owner of a house who believes that he has been forced by a credit company into a mortgage by a dishonest means. Forensic auditors and audit software are available to buy online.