Forensic Audit Decoded ? Unlocking the Secrets of Forensic Accounting Investigation

There is an unprecedented demand for transparency and sustainable business models in today’s business environment. Forensic Audit Decoded meets this critical need by equipping readers with the techniques and tools necessary to uncover the true nature of a business entity’s resources and operating revenue. This book aims to demystify the process of forensic accounting investigation, revealing the hidden details beneath the surface of financial statements.

Forensic audits are crucial due to the discretionary and subjective application of accounting rules, which managers can sometimes misuse for personal gain, compromising the interests of shareholders and creditors. This book delves into how such practices can lead to financial statement fraud and underscores the importance of forensic audits in uncovering the actual economic reality.

Providing an in-depth and systematic analysis of forensic auditing, Forensic Audit Decoded offers a detailed, step-by-step approach to the forensic audit of financial transactions. It thoroughly addresses every aspect of forensic auditing related to the items in the statement of Profit & Loss and the Balance Sheet, making it an invaluable resource for professionals in the field.

This book caters to a broad and diverse audience, including:

Forensic Auditors and Chartered Accountants ? Professionals specialising in forensic audits and fraud detection
Financial Institutions ? Banks and lenders seeking to safeguard their assets
Regulators ? Authorities like RBI, SEBI, and ROC who oversee financial practices
Investigating Agencies ? Entities like SFIO, EOW, CBI, and police departments involved in fraud investigations
Insurance Companies ? Firms looking to prevent and detect fraudulent claims.
Law Enforcement Agencies ? Courts and lawyers needing forensic expertise
Investors ? PE firms, bondholders, and debenture holders interested in protecting their investments
Company Promoters and Management ? Business leaders aiming to maintain transparency and prevent fraud
Revenue Collecting Authorities ? Entities like GST and Income-Tax departments focused on accurate revenue reporting
Insolvency and Bankruptcy Professionals ? Experts identifying preferential and undervalued transactions
Foreign Company Investigators ? Professionals examining international corporate frauds
The Present Publication is the 2nd Edition, authored by CA. Gyan B Pipara. The noteworthy features of the book are as follows:

[Step-by-Step Methodology] The book provides a detailed, systematic approach to conducting forensic audits. Each step is clearly outlined, making it easier for readers to follow and implement in real-world scenarios
[Comprehensive Coverage] It addresses every aspect of forensic auditing related to the items in the statement of Profit & Loss and the Balance Sheet. This ensures no area of financial transactions is left unexplored
[Regulatory Framework] It includes a thorough examination of the regulatory framework, particularly the impact of the Companies Act 2013 and establishing the Serious Fraud Investigation Office (SFIO), highlighting the legal provisions supporting forensic audits.
[T-3 Structure Framework] Introduces the innovative T-3 Structure (Test, Trace, Track) for forensic accounting investigation, providing a unique and effective methodology for conducting thorough audits
[Real-World Case Studies] Incorporates numerous case studies and examples to illustrate the concepts discussed, making the content relatable and easier to understand
[Detailed Analysis and Techniques] Provides in-depth analysis of typical fraud schemes, including off-balance sheet transactions, round-tripping, tunnelling strategies, and more, equipping readers with the knowledge to identify and address these issues
[Practical Tools and Checklists] Includes practical tools, checklists, and guidelines to assist forensic auditors in their investigations, enhancing their ability to uncover financial discrepancies
[Focus on External Fraud] Highlights the often-neglected risk of external financial statement frauds, providing strategies to mitigate these threats
[Emphasis on Transparency and Integrity] Encourages the adoption of transparent and sustainable business practices, aiming to improve corporate governance and protect stakeholder interests
The contents of the book are as follows:

Key #1 ? Setting the Path
Understanding the Forensic Accounting Investigation
Techniques, tools, and concepts used in forensic accounting investigation
Some Interesting Facts of Forensic Accounting Investigation
Unique and intriguing aspects of forensic audits
The T-3 Structure ? Test, Trace, and Track of Forensic Accounting Investigation
Introduction to the T-3 Structure
Application of the ‘Look Forward ? Look Backward’ concept
Techniques and Tools for Forensic Accounting Investigation
Practical methods for conducting thorough forensic investigations
Key #2 ? Decoding the Secrets of Forensic Audit of Resources
Loans and Advances Given ? Gone with the Wind
Investigating untraceable loans and advances
Investments ? Like a Traveller Without Destination
Analysing investment practices and potential mismanagement
Capital Work in Progress (CWIP) ? Which Always Remained in Progress
Examining ongoing projects that perpetually remain ‘in progress’
Tangible Fixed Assets ? Which Were Never Fixed
Investigating assets that are often overstated or misrepresented
Intangible Assets and Goodwill ? Neither Visible Nor Good
Assessing the real value of intangible assets
Stock-in-Trade and Debtors ? Piling and Mounting
Investigating stockpile and debtor issues
Key #3 ? Decoding the Secrets of Forensic Audit of Operating Revenue
Purchases of Goods and Sales ? Tales of Hope and Despair
Uncovering irregularities and fraud in procurement and sales processes.
Key #4 ? Key Metrics | Decoding Other Important Aspects
Common but Important Issues in Forensic Accounting Investigation ? Icing on the Cake
Addressing general yet critical issues in forensic audits
The Dog Ate My Accounts ? Honest
Exploring situations where records are not fully available
Joint Venture ? To Divert the Funds
Investigating joint ventures used to misappropriate funds
Off-Balance Sheet Transactions
Investigating hidden liabilities and assets
Round-Tripping
Uncovering schemes designed to inflate revenue artificially
Absence of Confirmation of Balances
Addressing issues of unverified account balances
Tunneling Strategy
Investigating the diversion of resources to benefit insiders
A Liechtenstein Vehicle
Analysing complex international financial structures
Complex Holding Structures
Investigating intricate corporate structures used to conceal fraud
Subject Index
Comprehensive index to quickly locate topics within the book