Preventing Fraud with Forensic Accounting
Any business which has in its employ accountants and other professionals who have access to the business funds runs the risk of being a fraud victim. All businesses are actually vulnerable to fraud, in some degree or the other. Forensic accounting is one of the ways in which embezzlement and skimming can be found out.
Forensic Accounting and Forensic Audit
Forensic Accounting is essentially a financial service which specializes in identification and prevention of fraud in a business. Forensic Audits are done by forensic accountants who can identify the ways in which a particular business is susceptible to fraud. Fraud which has already been committed can also be discovered by forensic accounting. The evidence collected by the forensic accounting team is valid in the courtroom.
Characteristics of Fraud
The commonest fraud that is committed happens to be embezzlement. Employees who indulge in embezzlement are experts in choosing the time and the amount of money, which is in small amounts such that they are not detected. A forensic audit can help to stop embezzlement which if left unchecked would have continued for many years to come and caused significant losses and damage to the company or business. A lot of civil fraud cases have been known to be settled out of court. While performing the forensic audit, the forensic accountant carefully studies the financial history of the company and the records to try and spot “patterns” that are indicative of embezzlement and fraud. Background checks, thorough in nature are done for every employee to rule out the possibility of a known fraudster joining the company ranks.
A forensic audit is by nature a very thorough and detailed examination of each and every facet of a business’ history and financial activities. One could say that forensic auditors don a detective’s hat when they get working. The fraudsters involved are in general a tricky and slimy lot, who are intelligent to boot. They take every possible measure to avoid getting caught and cover their tracks quite well. It takes all the skill and expertise of a forensic auditor to nail a fraudster.
Apart from fraud detection, forensic audits can also help a business to identify the inherent vulnerabilities it possesses. At the end of the day, the forensic specialist team lists a recommendation to mitigate those risks completely or to a minimum.
Netrika Consulting is known for forensics services in India and their crack team of forensic auditors is highly trained and skilled in the latest techniques and methods so that they are always on top of their game. This helps to ferret out fraudsters in the least possible time.