Forensic in laymen terms means relating to court of law or something which can be held as an evidence in a court of law. Accordingly, forensic audit is necessary when any fraud is alleged and such allegation is to be proved/disproved in court of law.

Mainly, Frauds are divided into following categories which require a Forensic Audit:

• Financial Statement Fraud
• Asset Misappropriation
  • Cash Receipts
  • fraudulent Disbursements
  • Inventory and Other Assets
• Bribery and Corruption
• Theft of data and intellectual property
• Financial Institution Fraud
• Payment Fraud
• Insurance Fraud
• Health Care Fraud
• Consumer Fraud
• Computer & Internet Fraud
• Contract & Procurement Fraud
• Insolvency Fraud
• Securities Fraud
• Money Laundering Fraud
• Tax Fraud

Now, as a Forensic Auditor in any of the above mentioned cases, we have to gather evidence and give our conclusion on that whether any fraud has happened or not and the same can be challenged in a court of law so we may also have to act as an expert witness in some of the cases. We could be acting on behalf of either the management or Government Authorities.