Forensic Audit and Financial Investigation Services
There are moments in the life of a business when the management needs more than an audit opinion. A specific concern has come to the surface. Numbers in a particular account are not adding up. A vendor relationship has started to look unusual. A staff member has resigned in difficult circumstances. A partner dispute has begun. A bank or regulator has asked questions that the normal books and records cannot fully answer.
Forensic audit and financial investigation work is the structured examination of facts in such situations. It is fact-finding work, carried out independently, with the aim of giving the management or the board a clear, evidence-based picture of what happened, what the financial impact is, and how the records support that picture. The work does not assume wrongdoing and does not replace legal advice or the role of investigative authorities. It establishes the facts so that decisions, whether commercial, internal or legal, can be made on a sound basis.
When a forensic engagement is usually needed
Forensic work is commissioned for a specific reason rather than as part of a routine cycle. Common situations include:
- A suspected loss in a particular area of the business, where the management wants an independent reconstruction of what occurred.
- A staff exit, vendor dispute, or partner separation where there are unresolved financial questions.
- A regulatory query, tax notice or banker concern that requires a deeper review of specific transactions than a normal audit provides.
- A whistleblower complaint or internal allegation that the board or management needs to examine objectively.
- A due diligence finding from a transaction that has raised questions about historical numbers.
- A trustee or promoter level concern in trust-run or charitable institutions where independent review is required for governance reasons.
- Preparation of a structured factual report that will be relied on in legal or arbitration proceedings, where the format and standards of evidence are particularly important.
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What the engagement covers
Each forensic engagement is shaped tightly around the specific question being investigated. The scope, time period, transactions and locations to be examined are agreed in writing before work begins and are revisited if new facts emerge during the work.
Scoping and planning
The first step is a careful, confidential conversation with the management, board, or their advisors to understand the concern, the period of interest, the people and transactions involved, and what the management intends to do with the findings. This determines the right scope, the documents and access we need, and the level of confidentiality with which the work will be carried out.
Document and data review
We examine the relevant accounting records, vendor and customer files, contracts, invoices, banking records, internal correspondence and any other documentation within the agreed scope. Where electronic data is involved, we work with the records the business is able to produce and, where necessary, in co-ordination with specialists for data extraction or recovery.
Transaction reconstruction
Where the question concerns a specific set of transactions or a pattern over time, we reconstruct the sequence from the available records, follow the money and the goods through the entries, and identify where the evidence is consistent with the management’s understanding and where it diverges from it.
Interviews and clarifications
Where appropriate and with the management’s authority, we conduct structured interviews with the individuals who can clarify specific facts. Interviews are conducted in a fact-finding manner, focused on understanding the records and processes rather than on assigning blame, and they are documented in writing.
Findings report
The output is a written report that sets out the scope of work, the documents and records examined, the facts established, the quantification of financial impact where possible, and the limitations of the work. The report does not draw legal conclusions and does not opine on guilt or intent. Where the matter may proceed to legal action, the report is drafted with the standards of factual reporting that such proceedings typically require.
The line between fact and legal conclusion matters in forensic work. Our reports set out what the records show. Whether a particular set of facts constitutes a specific legal wrong, and what action follows, is for legal counsel and the appropriate authorities to determine. Our team will co-ordinate with legal counsel where the engagement requires it.
How a forensic engagement is run
Forensic work runs differently from regular audit or advisory engagements in a few important ways.
- It is conducted with strict confidentiality, often known only to a small group within the management or board. Access to the work and the findings is controlled.
- The scope is documented in detail before work begins and any changes are agreed in writing. This protects both the client and the engagement from scope creep that can undermine the credibility of the findings.
- Documentation discipline is high throughout. Working papers, source documents and the chain of how each finding was reached are maintained at a standard that supports the report if it is later relied on by external parties.
- Where there is any possibility of legal proceedings, we work in co-ordination with the client’s legal counsel from an early stage so that the engagement, the documentation and the reporting are structured appropriately.
- Where a particular type of investigation requires specialist capabilities that sit outside our scope, we discuss this openly with the client at the scoping stage and, where appropriate, undertake the work jointly with relevant specialists.
Proactive fraud risk reviews
Not all forensic work begins with a specific concern. Some businesses commission a periodic fraud risk review as a governance discipline, to identify the areas where the business is most exposed and to put preventive controls in place before an issue arises. A fraud risk review covers:
- Mapping of areas where the business is exposed to financial loss through error, manipulation or weak controls.
- Assessment of segregation of duties, authority limits, and the controls around high-risk areas such as procurement, cash, payroll and inventory.
- Review of the response framework, including how concerns are reported internally and how the management responds to them.
- Recommendations for prevention, detection and response, prioritised by risk and feasibility.
This work is preventive in nature and sits comfortably alongside our internal audit and profit leakage audit engagements.
Who this is suited to
Forensic engagements are usually commissioned by:
- Promoters, boards and audit committees of mid-size and larger businesses where a specific concern has arisen and needs independent examination.
- Family-owned businesses going through a transition or dispute where unresolved financial questions need a structured answer.
- Hospitals, educational institutions, trusts and similar bodies where governance considerations require an independent factual review.
- Businesses preparing for or responding to legal or regulatory proceedings where a structured factual report is required.
- Investors or acquirers who need a deeper review of specific historical transactions identified during due diligence.
Forensic work is not a substitute for routine internal audit or for management oversight. Where the underlying need is for better continuing financial controls rather than a specific investigation, the internal audit or advisory services will be more appropriate.
Our Working Process
Step#1
You meet with us on a Video/Audio call to clarify the details.
Step #2
We send you a requirement list.
Step #3
We prepare the documents and get your work done.
Frequently asked questions
1. How is a forensic audit different from a statutory or internal audit?
A statutory audit confirms that the financial statements give a true and fair view, in line with the law. An internal audit reviews the effectiveness of controls on a continuing basis. A forensic audit is a focused, fact-finding examination of a specific concern, conducted to a standard that supports the use of its findings by the management, the board, or external parties such as legal counsel.2. Will the engagement automatically lead to a criminal complaint or legal action?
No. The engagement establishes the facts. Whether to take any action, and what action to take, is the management’s decision, usually taken in consultation with legal counsel. Our role is to provide a clear, evidence-based account of what the records show.3. Will you give an opinion on whether a specific person committed fraud?
We do not opine on guilt or intent. Those are matters for legal counsel and, where applicable, the appropriate authorities. We set out the facts, the documents that support them, and the financial impact. The interpretation in legal terms is not within our scope.4. How is confidentiality maintained?
Forensic engagements are conducted with strict confidentiality. Access to the work and the findings is controlled, and the engagement letter sets out who within the client’s organisation is authorised to receive information. As chartered accountants we are also bound by professional confidentiality.5. Can the report be used in legal or arbitration proceedings?
Where the engagement is structured for this purpose at the outset, the report is drafted with the standards of factual reporting that such proceedings typically require. Whether and how it is used in any specific proceedings is a matter for the client’s legal counsel.6. How long does a forensic engagement take?
This depends entirely on the scope. A focused review of a specific concern may be completed in a few weeks. A wider examination across multiple periods, locations or transaction types can run over several months. The expected timeline is discussed and documented at the scoping stage.7. Can you give a guaranteed figure for the loss or the recovery?
No, and any firm that offers such a guarantee at the outset of a forensic engagement should be treated with caution. Quantification is a finding of the work, not a starting promise. We commit to a clear, documented account of what the records show.8. We are not in Patna. Can you take up the engagement?
Yes. Forensic engagements are commonly delivered across cities, with site visits planned where they add value. The engagement letter sets out the working arrangement, including travel and on-site time, before work begins.Speak with our team
If you have a specific concern that may benefit from an independent factual review, you are welcome to get in touch for a confidential initial conversation. We will help you decide whether a forensic engagement is the appropriate response, whether a narrower review would be a better starting point, or whether the matter is better handled through internal audit or legal channels first.