Forensic audit
Definition
An examination of an organisation's financial records and systems conducted specifically to gather evidence for legal proceedings. Distinguished from a regular audit by its investigative purpose, adversarial standard of evidence, and the forensic accountant's role as a potential witness.
Related terms
- Confession as discovery trigger
- Unlike Enron and WorldCom, which were uncovered by auditors, journalists, or internal whistleblowers, Satyam was exposed by the chairman's voluntary confession letter....
- Mark-to-market accounting
- Recognising the fair value of a contract or asset on the balance sheet rather than historical cost. Enron applied mark-to-market to long-term...
- PCAOB
- Public Company Accounting Oversight Board, established by SOX to set auditing standards and inspect audit firms performing public-company audits. It replaced the...
- Sarbanes-Oxley Act (SOX)
- US federal legislation enacted in July 2002 in direct response to Enron and WorldCom. Its key provisions include CEO/CFO certification of financial...
- SFIO
- Serious Fraud Investigation Office: a statutory body under India's Ministry of Corporate Affairs that investigates corporate frauds under the Companies Act 2013....
Explained in
- Case Studies: Enron, WorldCom, and SatyamAn examination of an organisation's financial records and systems conducted specifically to gather evidence for legal proceedings. Distinguished from a regular...