Page 243 - AAA Integrated Workbook STUDENT S18-J19

Forensic audits

Definitions

Forensic audit refers to the specific procedures used to obtain
evidence, usually to quantify a financial loss.

This could include the use of traditional financial auditing techniques
such as analytical procedures and substantive procedures for example
to quantify the extent of a fraud or to determine the amount of an
insurance claim.

Application Examples Type of work performed

Fraud Theft of company funds, tax Funds tracing, asset
investigation evasion, insider dealing identification and recovery,
forensic intelligence gathering,
due diligence reviews,
interviews, detailed review of
documentary evidence

Insurance Business interruptions, Detailed review of the policy
claims property losses, motor from either an insured or
vehicle incidents, personal insurer’s perspective to
liability claims, cases of investigate coverage issues,
medical malpractice, wrongful identification of appropriate
dismissal method of calculating the loss,
quantification of losses

Professional Loss suffered as a result of Advising on merits of a case in
negligence placing reliance on regards to liability, quantifying
professional adviser losses

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