The Importance of Investigative Auditing

Investigative Auditing is one of the major segments in auditing dealing with the identification, prevention, tracking, and quantification of fraud, misuse and mishandling of fiscal and operational activity. It uses a range of methodologies to test the existence of financial irregularities, suspected discrepancies in operations or illegal uses of funds or other firm's resources. The investigative auditor does investigative auditing. The functions of the investigative auditor are:
  • Examining the organization’s financial processes.
  • Surveying exposure to fraud and embezzlement.
  • Confirming identification of the discrepancy & check whether it is a mistake or real fraud.
  • Analyzing how the fraud was carried out.
  • Quantifying the loss caused to the business as a result of the fraud.
  • Examining organizational processes to prevent future errors.
  • Based on the findings of the investigation submit opinions.
Investigative auditing is suitable for local authorities, business entities, other government agencies and often founds the basis for police investigation and legal proceedings.

Process for Conducting Investigation in Auditing

The process required for conducting Investigative Auditing are:

Ø  Identify Nature & Scope

The client instructions reliant to nature, objective and scope should be acquired in clear terms. When the instructions are unclear, there may arise certain confusions and uncertainty regarding the investigation.  The client instructions must include the investigation area details, its purpose and the period to be investigated.

Ø  Formulation of Investigation Programm

  • An investigation program can't be fixed and inflexible. Real examination methodology at each stage must be modified, contingent on the different advancements throughout the examination.
  • The finding of the past steps will choose the further course of the examination. While defining the investigation program, the wide extension and limits are to be resolved.
  • The rundown of records and archives to be checked are to be resolved at this stage keeping in see the goal and the reason for the examination.

Ø  Conduct of Investigation

The careful and thorough examination, i.e., assessment of different records and reports and assessment of different people of the concern, relating to the investigation, a zone is to be led.  At each stage, the investigator may decide the further course of investigation dependent on the conditions and different findings. The investigator will keep up a comprehensive record of work done, evidenced inspected, significant discussions held and so forth, as a proof for the investigation conducted.  These records may form the basis for the formulation of the conclusion and preparation of the investigation report.

Ø  Investigation Report

The investigator may conclude all his findings, dissect all the supporting documents and statements, altogether examine the examination records and reach inferences. At the same time, he should have a receptive outlook, free from pre-imagined ideas.

Investigation Audit Service in Dubai

ARC Associates, one of the best Audit companies in Dubai provides comprehensive investigative audit services to clients on all the safety and insurance matters to aid you in executing the plans, decreasing efforts maximizing value. Our prompt and soundly charged services for investigation audit cover all the necessary tasks and services. Investigative auditors collect evidence concerning fraudulent or offensive activity affecting the business. Their audits are considered to identify and deter the embezzlement of assets and to lessen future fraud risks. We offer comprehensive investigative audit services as we have a crew of qualified forensic accountants who specialize in Investigative auditing. This would relieve your company management from the problem of hiring a full-time forensic accountant that is quite expensive. To see how ARC Associates can help you through the Fraud Investigation Audit, get in touch with us.

Location: United Arab Emirates

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