Other audits focus on ensuring compliance with standards and identifying potential improvements, while forensic audits investigate suspicions of fraud, misappropriation of assets, or other financial crimes. Forensic audits require a more in-depth, investigative approach.

1. Difference Between Other Audit and Forensic Audit
Other audits focus on ensuring compliance with standards and
identifying potential improvements, while forensic audits
investigate suspicions of fraud, misappropriation of assets, or other
financial crimes. Forensic audits require a more in-depth,
investigative approach.
Dr W Saranya
Associate Professor,
Department of commerce
Sri Ramakrishna College of Arts and Science

2. Purpose and Scope of Each
Audit Type
1 Other Audits
Evaluate financial
statements, internal
controls, and operational
efficiency to improve
business processes.
2 Forensic Audits
Uncover financial fraud,
misuse of assets, or
other irregularities, often
for legal proceedings.
3 Scope Differences
Forensic audits have a narrower, more specialized focus
compared to comprehensive financial audits.

3. Investigative Techniques in Forensic Audit
Data Analysis
Applying advanced data mining
and anomaly detection to identify
suspicious transactions or patterns.
Interviews
Conducting in-depth interviews
with relevant parties to uncover
hidden information or
contradictions.
Physical Inspection
Verifying asset existence,
condition, and usage through on-
site examinations and
observations.

4. Burden of Proof in Forensic
Audit
Higher Standard
Forensic audits must meet a
higher burden of proof, as
the findings may be used in
legal proceedings.
Comprehensive
Evidence
Forensic auditors must
gather substantial,
irrefutable evidence to
substantiate any allegations
of wrongdoing.
Objectivity
Maintaining impartiality and avoiding bias is crucial for the
credibility of forensic audit findings.

5. Key Outcomes and Reporting
1 Detailed Findings
Forensic audits provide a comprehensive analysis of
identified issues and irregularities.
2 Evidence Documentation
Careful documentation of all evidence collected is essential
for potential legal action.
3 Recommendations
Forensic audit reports often include recommendations for
remedial actions and internal control improvements.