What Is The Difference Between Statutory Audit And Forensic Audit?

A financial audit is a methodical and sovereign examination of books, accounts, statutory records, documents, and vouchers of an organization to make certain how far the financial statements, as well as non-financial revelations, present a true and fair view of the concern. In other words, it is an examination of an existing system, report, or entity. 



Forensic Audit

A forensic audit is an examination of financial statements and records, which are then used as evidence in court or for legal proceedings. It is typically conducted to pursue parties involved in fraud, malpractices, or embezzlement.

Forensic audits can be used to help regain public confidence in a company that has been accused of fraud.

Statutory Audit

Statutory audit refers to an inspection and evaluation of financial records and statements of a government organization or a company. It ensures that the financial records and information provided by companies to the public are true and fair as it represents the financial position of companies

It helps the public get a full understanding of the company. The audit is performed to make sure that companies follow all rules and regulations, and also to see if they are following an efficient system. A statutory audit checks bank balances, accounting records, working conditions, etc., to get a clear picture of what the company is doing.


Comments

Post a Comment

Popular posts from this blog

How can a business valuation help my business

Image
Business evaluation helps you understand the value of your company. It measures the key aspects such as market, assets, liabilities, management, etc. An expert auditor can evaluate your business and help you with important decisions to ensure that you get excellent benefits. How Business Valuation Process Helps your Business Grow? Attracts the investors Help take long term decisions Helps company restructuring Improves the goodwill Business Valuation process is not an easy task. You have to conduct an in-depth analysis to get a total understanding of the industry, the business risks, cash flow expectations, and many other situations. So, it is always advisable that the business valuation process must be done by a valuation expert. 
Read more

What do we mean by forensic audit and its scope?

Image
Forensic audit is an examination of financial statements and records, which are then used as evidence in court or for legal proceedings. It is typically conducted to pursue parties involved in fraud, malpractices, or embezzlement. Forensic audits can be used to help regain public confidence in a company that has been accused of fraud. Providing legal assistance Effective financial management: Help in avoiding and solving contractual disputes Increases public confidence and brand reputation Helps detecting the fraud at an early stage and assists to take correct measures for taking down such fraud activities. That said, if you need any detailed clarification on the accounting and auditing process, our professionals are always ready to help you out with all kinds of challenges. Feel free to contact us!
Read more

What are the roles and responsibilities of an internal auditor?

Image
Businesses may need financial audits of their records for compliance and evaluation. They must abide by tax laws and Value Added Tax (VAT) rules, file tax returns, and avoid any future chaos. A Business’s internal auditor can help with this. The Roles and Responsibilities of an internal auditor include: Internal Auditors are a valuable asset to an organization. Their main duties include identifying, evaluating, and reporting on risks related to the reputation of the firm. The way it conducts its business operations, its strategic growth plans, and how it manages environmental impact as well as employee treatment. They function as consultants who carry out the appraisal and advise the company administration on how to handle the risk factors that they have recognized.  Proper governance of the firm and assessment of risk management   Safeguarding of assets in compliance with laws and regulations Help to conduct proactive fraud audits to identify potentially fraudulent acts ...
Read more