A forensic audit reviews and analyses a company’s or individual’s financial statements to provide facts that can be used in court. Most large accounting firms have a forensic auditing department. Forensic auditing is a specialization within accounting. Accounting and auditing processes, as well as expert knowledge of the legal system, are needed for forensic audits.
A broad variety of investigation practices is covered by forensic audits. Forensic analysis is commonly used in the investigation of a group suspected of bribery, embezzlement, or other financial offenses. During the course of a forensic investigation, the investigator can be called in to appear as an expert witness in court. Forensic audits can also include circumstances that aren’t linked to financial crime, such as contract disputes.