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Hi, i’m a bit confused on Applications of forensic auditing and applications of forensic accounting.
In my notes it relates applications of forensic auditing as follows: To fraud, To negligence and To insurance claim.And for applications of forensic accounting it relates it to: Litigations, investigations, IT forensic and dispute resolution.
I want to know if in exams there is a question to write on applications of forensic auditing, can I write on litigations, investigations, IT and dispute together with fraud, negligence and insurance claim. Same if it asks for applications of forensic accounting, can I write to fraud, negligence and insurance claim together with the four I mentioned in applications of forensic accounting?
I am confused also because there is investigation in applications of forensic accounting.. Can that be put on applications of forensic auditing also?
please answer me both questions.. Thank you
I think your question will best be answered by reading the Student Accountant article from 2/3 years ago. You’ll find it in the ACCA technical articles archive. If you’re still in doubt, post again
There is a recent article on Forensic Accounting written by a member of the examining team (4/14) that addresses the confusion that students are having with this topic. I”m having a read of it again, to ensure I understand the requirements properly.
Hope that this helps.
I have a problem with this topic again. It concerns the question December 2008 no2. It says to explain the steps involved in a forensic investigation into the payroll fraud, including examples of procedures that could be used to gather evidence.
I know the steps but my problem is why when doing the planning stage it said identifying the type of fraud, how long it has been operating and how it has been concealed but when doing the gathering evidence stage it said it has to gather sufficient evidence to determine that a fraud has taken place, the identity of the fraudster and to determine the financial loss suffered. Why?
If in the exam in planning stage the objective is to quantify the financial loss suffered then when arriving at the evidence gathering stage, should i say to obtain sufficient evidence to determine that a fraud has taken place, the identity of the fraudster and to determine the financial loss suffered and include examples of procedures on these or obtain evidence only to determine the financial loss suffered?
I looked at the answer, read the technical articles on forensic accounting but i can’t understand this part of the question.. Please help in the questions i ask..
In an alleged fraud situation, where there is a suspicion that fraud has been perpetrated (or is still being perpetrated) the auditor needs to plan the approach to determine whether, as a matter of fact, that such a fraud is being or has been carried on.
The steps involved are as you have quoted above.
Once that fact has been established, it then becomes necessary to quantify the extent of the fraud, who has committed it, and why the company’s systems were not adequate to prevent it.
Part of the definition of “internal control” is the element of “prevention and detection of fraud and error”
Is that ok?
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