What is the purpose of conducting a forensic audit?

Conducting a forensic audit primarily focuses on the examination of financial records with the aim of identifying discrepancies, inaccuracies, or fraudulent activities. This process involves a thorough review of financial documentation, transactions, and related activities to uncover any signs of misconduct or financial irregularities.

In a forensic audit, auditors work meticulously to gather evidence, often using advanced analytical techniques, that can support legal actions or internal investigations. The results of such audits not only expose potential fraud but may also lead to improved practices and controls within an organization to prevent future occurrences.

While enhancing cybersecurity measures, analyzing code for vulnerabilities, and monitoring network traffic are important aspects of maintaining organizational integrity and security, they are more closely associated with cybersecurity and IT audits rather than forensic audits. A forensic audit hones in specifically on financial aspects and the integrity of financial reporting, thereby underscoring its distinct focus on detecting and addressing fraud or discrepancies in financial records.