Forensic (Financial) Investigations

What Is a Forensic Audit?

While a forensic audit may sound like something exciting you hear about on crime dramas like Law and Order or CSI, the truth is a little more mundane. A forensic audit is a process of reviewing a person or company’s financial statements to determine if they are accurate and lawful. Forensic accounting is most associated with the IRS and tax audits, but it may also be commissioned by private companies to establish a complete view of a single entity’s finances.

When Are Forensic Audits Used?

Forensic audits are used wherever an entity’s finances present a legal concern. For instance, it is used in cases of suspected embezzlement or fraud, to determine tax liability, to investigate a spouse during divorce proceedings or to investigate allegations of bribery, among other reasons.

Forensic audits are performed by a class of professionals with skillsets in both criminology and accounting who specialise in following a money trail, keeping track of fraudulent and actual balance sheets and checking for inaccuracies in overall and detailed reports of income or expenditures. If they find discrepancies, it may be the auditor’s job to investigate and determine the reason for it, or it may be the job of a separate financial investigator.”

From Black’s Law Dictionary Free Online Legal Dictionary 2nd Ed

Many companies, from time to time, have doubts about their financial records, very small profit margins, or that expensive holiday their business partner is taking. A standard audit by auditors may not always reveal “the little secrets” if hidden well.

We at Willem van Romburgh and Associates have several leading fraud investigators on our books or sub-contracting for us.

We are neither auditors nor a registered auditing firm. We are fraud investigators doing a financial audit to uncover whether there have been any fraudulent or irregular activities.

Any audit is expensive and when done by top-notch auditors, the cost can outweigh the loss. At Willem van Romburgh and Associates, we believe that we have the solution to avoiding high costs whilst still ensuring a high probability of uncovering the truth.

Our Approach

  • We use accounting students/clerks to capture all financial records, using state of the art accounting software, used by International Companies. This is not only more cost-effective but also helps to pay for their studies.
  • The investigator to whom the case is assigned monitors the capturing daily and make notes of concerns.
  • These concerns are investigated using old-school fraud investigating techniques.
  • Once the capturing is complete, the whole audit is submitted to a registered Chartered Accountant to verify and approve.
  • Our investigator will then advise the client on the possible actions that can be taken.
  • Only CFE certified Investigators works on this type of case. – The Certified Fraud Examiner (CFE) is a credential awarded by the Association of Certified Fraud Examiners (ACFE).

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