‘Forensic Validation’ is generally taken to refer to a comprehensive view of fraud investigation, including

  • Business Methodology
  • Forensic Accounting - The audit of accounting records and systems to prove or disprove fraud
  • Digital Forensics
  • Investigation
  • Litigation Support

It may include - Investigative techniques with an understanding of accounting principles, review of financial statements to determine if they are accurate and lawful, Application of accounting methods to the tracking and collection of forensic evidence.

Need of Forensic Validation

To find out whether or not true business value has been reflected in financial statement
To find whether any fraud has been taken place
To determine is there any suspicious practice hiding beneath company or individual financial record and statements

Constituents of Forensic Validation

  • Assessment of fraud risk factors
  • Comparison and contrast of various fraud scheme
  • Developing off-setting internal controls
  • Using data analysis techniques
  • Evaluating internal controls
  • Evaluating financial and program risk for potential fraud
  • Applying various evidence-gathering techniques used to detect fraud
  • Justifying the auditor’s conclusion of fraud
  • Documenting the evidence and data-gathering process
  • Sharing the finding with agency and advise them on how to avoid the fraud in the future