What is forensic audit and what is the role of Auditor?

The accounting and auditing community has encountered and monitored scams arising from deceptive and orchestrated questionable accounts in the past, especially in the previous few years. 

These scandals embarrass not just the auditing industry but the general public as well.

In the end, what was the solution extracted out?


The last solution was forensic auditing services, which is investigating the accounting transactions and financial statements using different techniques.

The role of forensic auditing services altogether is different from regular audits due to the expertise it possesses in its domain. 


The type of audit carried out matters a lot in case of legal proceedings. Forensic auditing not only points out the discrepancies but also allows the company to correct them on time which can be considered a long-term advantage for you.


GST audit services are possible with the help of a forensic accountant, but do you know the due date for the GST audit report?


GST- 9 and GST-9C both should be submitted on or before 31st December of the following financial year. Abnormal auditing techniques may not be able to elucidate the problem arising out in that specific situation, but on the other hand, foreign auditing services can unravel all the hidden issues.


All the investigation is done thoroughly with the officials so that no information is left behind and the problem is resolved with the complete assessment. A legal team is also there that is required in case there are any investigations that need to maintain confidentiality. The forensic auditor requires an extensive amount of validation.


What are the skills required to have such a position?


Someone who has a complete skill set, including knowledge, aptitude, and practical experience, is the legitimate, genuine expert in spotting the discrepancy in the given records. A forensic auditor does not just look at the numbers. Rather a considerable amount of time is spent focusing on the extraneous transactions that pinpoint the scandal or devious actions that couldnt have been unknotted without forensic accounting.


The direct-indirect taxation in Pune will enable the companies to know about the taxes they have to pay in the subsequent fiscal year.


But do you about the type of critical issues investigated through forensic auditing services?


  • The first matter is corruption. It will include if there is any conflict in interest if any bribery is done, or in the case of extortion.

  • The second matter is the misappropriation of assets. For example: when the cash is misused, inventory is stolen, etc. This is generally done by a lot of businesses to avoid paying taxes.

  • The third matter is fraud related to financial statements. It is done either to present a better financial position or show that they have lower profits, ultimately reducing their taxes.


If the audit is not conducted and the report is not submitted on time, then there is a penalty for GST audit too. There is no specific provision except the general one, i.e., to pay Rs. 25000/-.

Address

Sachin Gujar & Associates,
Chartered Accountants
47/22, Erandwana, Law College Road,
Ekta Apts, 3rd Floor, Above Nirmitee Furniture,
Pune - 411004

© Copyright 2020 All Rights Reserved. | Designed by EXCITE SYSTEMS