It's fundamental that if the term audit is mentioned, it totally deals with banking and finance or property custody. However whenever you speak about legal things or investigative functions regarding such, forensic audit is the term to use. Forensic auditing is an accounting technique that tracks down evidence committed in a crime concerning embezzlement and fraud. This process is essential in litigating criminal acts in the court of law. To put it briefly, it is an auditing expertise that applies to audit-related actions with legal consequences.

A process that involves determining and mapping errors in cash transactions in accounting is called forensic audit. This is used by lawyers and other authorities to perform an investigation that would need legal documentation. The process can be a tool against accounting firms that have been negligent in their operations that led to a financial loss of another party. This can be used against public-elected officials who accept bribes, which are a form of corruption. An audit can be done between the party giving the bribe and the official accepting it. Overall, this is performed by highly trained experts in the field who are holders of degrees such as criminology, sociology or any related course. They are called forensic accountants.

After the investigation, a complete detailed information or report is completed. The report will be based on the information collected by the forensic accountant. The report, in turn, will be the summary of what they have uncovered in the process of investigating the case. The report will then be passed on to the lawyers or the authorities who requested for such inquisition. The completed report can be used as evidence in any court of law. A guilty party can be prosecuted easily if this report is done correctly. In addition, these audits are done within a certain period of time. However, there are factors that could delay forensic audit such as non-cooperation of the party being investigated.

Though used interchangeable, forensic audit and audit are actually two distinctive terms that should be classified accordingly. Both may deal with accounting and money, but they have different functions. For the right reports to be submitted, this process has been systematized. This has been a requirement of law and the document is an evidence in any court of law for cases like embezzlement and fraud. Investigations to fraudulent cases will take so much longer and there is a higher risk that these cases won't prosper if these experts are not involved.

In legal aspect, the best person to handle issues like these are those who are experts in the field. Forensic auditors are, hence, the best people to help you if you are having problems with financial documents..

Author's Bio: 

Forensic audit is something only well-trained and highly qualified professionals can do with any chance of success. When looking into loan audit irregularities and other related matters, hiring a forensic auditor is the first major step to make.