At One80Degrees, we are experts in the field of investigative auditing. It is important for all companies to understand the important role investigative auditing plays in uncovering and proving financial fraud and how a financial consulting firm can assist in the process.
What Is An Investigative Audit?
In many ways, an investigative audit is much like a regular financial audit. However, an investigative audit examines accounts and uses specific procedures to uncover any financial irregularities and identify, investigate, and prove financial fraud in a business. Investigative audits typically aim to gather evidence of financial fraud that a company will go on to use during legal proceedings or in a court of law.
How Do Investigative Audits Work?
Typically, investigative audits follow a very specific process to ensure that the audit is legal and collects all of the necessary evidence without missing any important information. The process typically involves the following:
- Planning the investigation to achieve specific objectives, such as identifying the type of fraud, when fraud took place, discovering perpetrators of fraud and more.
- Collective evidence required to prove any fraud, the perpetrator’s identity, the scheme’s details and more in court.
- Compiling a written report about the fraud to present to the client.
- Being present during court proceedings to explain any evidence so that it is clear and understandable
When Are Investigative Audits Necessary?
There is a range of situations that would necessitate an investigative audit in your business, including:
- To uncover suspected corruption or fraud in a business;
- To collect evidence that proves asset misappropriation or financial fraud
- To find the perpetrators of identified financial fraud;
- To identify exactly how fraud was carried out and identify strategies to prevent it from happening again;
- To get a complete picture of how much the fraud has cost the business, and
- To determine the precise time period in which financial fraud was committed.
The Benefits Of Investigative Audits
Investigative audits are well worth the effort and expense.
- Get All The Facts
Uncover the truth and gather all of the information rather than relying on rumours or suspicions.
- Gather Evidence
Once fraud has been identified, investigative audits will acquire everything needed to prove what occurred, who did it, and when it was committed.
- Make Well-informed Decisions
With all of the facts in place, businesses can make better, more informed decisions for the next steps.
- Conduct Thorough, Legal Fraud Investigations
With any investigation, it is essential to ensure that the process is carried out legally and follows the required processes to ensure it is fair and that any evidence acquired is admissible in legal proceedings.
- Identify Weaknesses & Implement Safeguards
A thorough investigative audit will identify how financial fraud was able to occur, allowing you to implement steps and procedures to ensure it never happens again.
Investigative Auditing With One80Degrees
As experts in the field, we provide our clients with fast, efficient and thorough investigative auditing to ensure that your company is well-equipped to identify and fight financial fraud. One80Degrees offers world-class financial consulting services, business transformation consulting, vendor management processes and more. To find out more, get in touch with us today.