The document discusses the role and responsibilities of forensic auditors. It notes that traditional auditing is often unable to uncover financial irregularities due to complex international transactions and corporate fraud in India. Forensic auditors must have expertise in areas like information systems auditing, accounting standards, legal frameworks, and information technology to properly conduct investigations, analyze evidence, and report their findings. The challenges forensic auditors face include dealing with large amounts of digital data across international borders and changing technological standards.

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2. By Neeraj Aarora
FCMA, CEH, CCNA, CFCE, LLB, MBA (IT)

3.  Traditional Auditing fails to unearth financial
irregularities;
 Complex Trade Pattern with Transnational Nature;
 Corporate Frauds in India;
 Enhanced Compliance Requirement;
 Transparency Requirement;
 Risk Management
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4.  Effective Governance
 Compliance
 Third Party Obligations
 Litigation Support
 Investigation
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5.  Forensic Auditor as Expert Witness:
 Section 45 Evidence Act
 Admissibility of Report:
 Admissible Evidence
 Computer Evidence
o Section 65B Evidence Act;
o Section 2 A Bankers Book of Evidence Act.
 Standard Procedures:
 Standards as Benchmark
 Acceptable Practices
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6.  Anvar P.V. Vs. P.K. Basheer and Others
[MANU/SC/0834/2014]
 The Supreme Court held:-
o Original electronic record admissible as primary evidence.
o Certificate U/S 65B Evidence Act shall ensure safeguard as
to the source and the authenticity of the electronic
evidence.
o If no certificate U/S 65B, no expert opinion is not
admissible.
o If no certificate U/S 65B, no oral evidence can be resorted.
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7. Debit &
Credit
Business
Method
Bit & Byte Admissibility
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8.  Multi-Disciplinary Specialization
 Knowledge of Information System Audit like Law,
CISA etc.
 Knowledge of Forensic Audit Process, CFE
 Computer Forensic/Network/Server
 Domain Knowledge/Exposure
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9.  Specific Methodology
 Accounting & Industry Standard
 Legal Framework
 Information System Standard
 Adherence to Standards:-
 Fyre Vs. United States
 Daubert Vs. Merrell Dow Pharmaceuticals
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10.  Define Objective
 Formulation of Strategy
 Discovery
 Understanding Business Process
 Information System Analysis
 Collection of Documentary/Electronic Information
 Analysis
 Finding the Gaps
 Interpretation of Business Transactions
 Systematic Review and appraisal of factors to meet the
objective of the audit
 Reporting
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11. Audit
Law &
Standard
Information
System
Business
Method
Investigation
Analysis
Reporting &
Proving
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12.  Complex Transactions/Process
 Information System Audit/Cyber Forensic/Cloud
Computing.
 Dynamically Changing Technology
 Digital Evidence-Admissibility Issues
 Cross Border Transactions
 Humongous Data/Methods
 Privacy Issues
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13.  In Demand
 Excellent Rewards
 Multinational Firms Vs Domestic Firms
 Expert Witness
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14.  Prevention of Money Laundering (PMLA)
 Central Bureau of Investigation (CBI)
 Enforcement Directorate (ED)
 Serious Fraud investigating Organization (SFIO)
 Economic Offences Wing (EOW)
 SEBI/FMC/Banks/Financial Institutions
 MNCs/Corporate Action
 Courts
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15. E-mails: neeraj@hazenlegal.com
Websites: www.forensicveda.com, www.neerajaarora.com
© HAZEN LEGAL ASSOCIATES, 2013 All Rights Reserved