FORENSIC AUDITING-CBI

Forensic auditing is a comprehensive auditing tool. Once it is completed, the
organization's key stakeholders should capitalize on the work by implementing
controls to reduce the risk associated with the event identified as having material
and significant ratings and being most likely to occur. The strength of current controls
in place and whether they are preventive controls or detective controls are taken into
consideration. Can the current controls be overridden or circumvented? Future audit
programmes should include test on the design and implementation of these controls.
If an event has been identified as inconsequential, forensic auditors may decide to
take no action; even so, at least it would be documented and management would
be aware of its existence. The forensic risk assessment is not the end of the process.
Circumstances change constantly and some changes may trigger the need to revise
the assessment. A fraud risk assessment process should be ongoing, dynamic and
reflect the organization's current business conditions. Forensic auditing combines
legalities alongside the techniques of propriety (VFM audit), regularly, investigate and
financial audits. The main aim is to find out whether or not true business value has
been reflected in the financial statements and whether any fraud has taken place.
In future, more and more organizations will be adopting forensic auditing tools to
strengthen their systems and controls, given its inherent strength and advantages