What is Forensic Auditing?

Forensic auditing examines individual or company financial records as an investigative measure that attempts to derive evidence suitable for use in litigation.

How Does Forensic Auditing Work?

Forensic auditing can sometimes be referred to as forensic accounting.

Forensic auditing combines investigative techniques along with an understanding of accounting principles to determine if there are suspicious practices hiding beneath company or individual financial records and statements.

Certified forensic auditors are trained to present their findings in legal proceedings that concern fraud, embezzlement, or financial disputes.

Why Does Forensic Auditing Matter?

Forensic auditing is important because it presents financial statement and transaction information in a way that is suitable for court.

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Paul Tracy
Paul Tracy

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 3 million monthly readers.

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