ALSO REFERRED TO as forensic accounting, forensic auditing has been defined as an accounting analysis that is performed with a probability of later use in either a civil or criminal legal proceeding. In many criminal investigations, especially those involving criminal enterprises, the mantra “follow the money” is regularly heard; forensic auditing answers that demand.

Through adaptation of accepted accounting procedures, assets can be tracked to their origination and later disbursement. Similarly, forensic auditing can establish if spending patterns are indicative of criminal activity.

Forensic auditing can therefore be divided into two broad classifications: litigation support and investigative accounting. Forensic auditors perceive the information-gathering process as more than a review of ledger information but as research into the operation as a whole. Accounting, auditing, and investigative skills are ...

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