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Forensic Audit

N R Doshi and Partners has been providing forensic audit services in Dubai for years. Our firm not only owns forensic accounting and auditing skills, but it is also familiar with the relevant legal framework.

The experienced forensic auditor of N R Doshi strives to track down the epicenter of fraudulent acts using their financial acuity, investigative and detective skills.

We dive deep into your financial records, filter the ‘red flags’ transactions, and figure out where the core of fraud exists.

Forensic Audit

What is a Forensic Audit?

A forensic audit is an investigation of financial statements records, and company operations, conducted by professional forensic auditors for detecting frauds and finding evidence that can be used in the court of law. A forensic audit is done in cases where embezzlement, financial crime, or fraud has happened, and someone is required to be prosecuted.

The forensic audit is performed to find out the modus operandi behind the fraud, the perpetrator, amount of fraud, and to gather evidence that can be produced before the court of law.

Forensic auditing includes various activities, and it requires the active participation of the client as well as the forensic auditor.

Generally, companies choose an external firm such as ours for conducting a forensic audit. It assures them of an impartial investigation.

Significance of N R Doshi's Forensic Audit Service

Our forensic audit service in UAE is one primary solution that helps businesses keep fraudulent acts in control. With the rise in the number of frauds due to the use of technology and new fraudulent methodologies, the prominence of forensic auditing has earned a lucrative specialty. Therefore, you should not compromise with the forensic audit service and only choose the best ones in the field, such as N R Doshi and Partners.

Our forensic audit service in Dubai is a significant way of identifying and gathering evidence against the fraudster determining the affected areas of a business and its monetary impact.

Besides the official documentation of business, our auditors perform a lot of fieldwork to gather information and try to corroborate their authenticity. Based on the official document and gathered information, we move forward in search of evidence.

Significance of NR Doshi Audit Service

Our forensic audit service will not only work to provide you with the core reason of the fraud but also the culprit behind the fraud. The evidence we generate will support you during the legal proceeding against the culprit.

It may help you to learn about the wrongdoings whose suspicions were even non-existing.

This gives you an idea about the weaknesses and lapses of your business’s internal controls and security standards. We will also help you to mitigate the risks and remove the shortcomings in your internal controls and physical and logical security. It will help you to avoid any such fraudulent acts in the future.

If we keep a check on your business operations regularly, there are minimal chances that any fraud will take place. It will ensure the investors that your business is fully secure and investment-worthy.

Optimize your business processes

Achieve higher operational efficiencies
with our forensic audit services

Types of Fraud for which We Conduct Forensic Audit

Asset Misappropriation

Cash Theft

Cash thefts are one of the most common frauds as they are easy to conduct. It mostly associates small amounts on a regular basis to avoid everyone’s attention. However, when the fraud is detected, it is easy to find the culprit because usually, very few people have access to cash.

Fraudulent Disbursements

Fraudulent disbursement is one of the significant frauds we have encountered. However, we go through every transaction detail to identify where the company funds are used to make payments to a fictitious supplier or a fictitious employee.

Inventory Frauds

We have found such frauds occurring when our clients have extensive inventories. It is tough to detect fraud when one doesn’t see any associated data. It is also hard to state anything related to the timing of the fraud. We proceed by conducting interviews, applying our professional judgment, and using forensic audit tools.

Misuse of Assets

When employees misuse the company assets for their personal benefit, it is a type of fraud. It can only be countered when the company put better governance on employees as well as assets.

Corruption

Our auditors have dealt with many corruption frauds, out of which the below-mentioned three are prevalent ones. They can occur irrespective of company sizes. Therefore, a company needs to put a regular check on their business operations to avoid these frauds.

Conflict of Interest

Conflict of interest occurs when an individual uses its influence for his personal gain, which harms the company. The benefit doesn’t need to in money terms. It can be any sort of undisclosed personal benefit or undue advantage.

Bribery

When a person uses its influence over a situation in favor of specific individuals or entities in exchange for monetary gains, such frauds occur. Therefore, during a forensic audit, we may need to consider the ‘unfortunate decision makings’ as intentional and examine the bodies affected by it.

Extortion

There can be a situation where a staff member from the company demands monetary benefit from any third-party to turn the case in favor of third-parties.

Financial Statement Fraud

This fraud causes intentional material misstatements in the officially presented financial statements. Such misstatements in the financial statements influence its users, and they are deceived at the advantage of a few people. This may cause significant damage to the company’s reputation if the fraud leads to adverse opinion at the time of the external audit.

For this reason, while investigating such frauds, we go through all your accounting records and transactions to dig out the instances of misstatements. We even make efforts to rectify the errors and set up guidelines to avoid such frauds.

Our Forensic Audit Process

Forensic Audit Process

Our Forensic Audit Procedures

While reaching us out, you won’t need to worry about our skills and experience. As our forensic investigators have investigated various types of frauds, we have in-depth knowledge of the legal framework and which fraud investigation technique we must use as per the nature of business and data. When you reach us out, we will discuss the scenario, areas of suspicion, and then only we will move forward.

When you approach us with a forensic audit request, our first task is to debrief the scenario and discover the unusual events by the general description. We mark the fraud indicators, which help us to move forward.

We evaluate the unusual events or red flags to understand the nature of the investigation required, total time consumption and costing. Based on our findings, we conduct an initial preliminary assessment of the complaint.

After defining the target of forensic investigation through preliminary assessment, we move forward to plan the investigation. Our planning is done keeping the following objectives in mind:

  • Identifying the type of fraud
  • To identify whether it is a one-time fraud, periodical, or regular.
  • Knowing the fraudster(s) involved
  • Gathering enough evidence to prove the fraud and fraudster(s) associated
  • Providing support to the businesses to save them from such frauds

As per the facts of the case and suspicion, we target particular areas of your business. We conduct due diligence background checks of people (external and internal) associated with selected areas. We make a note of every record that is unusual or can be related to the fraud.

Besides interviewing the employees, we even investigate the vendors, associated organizations, and ‘could be’ facilitators of this fraud. We request third-parties to provide us with the required documents as per our audit rights. We also take the assistance of law enforcement if needed.

We collect all the relevant data and necessary documents for moving forward with the operation.

  • We undertake a thorough study of accounting records maintained by the company
  • We carefully examine tender bids, proposals, employee CVs, and other related documents
  • We assess the system information with proper authority, without compromising with data security.
  • Conduct the interviews of all the individuals who are considered as suspects.

Based on our findings, we make adequate predication having a robust factual base to proceed further. This also helps us to refine the initial theory and move closer to the actual fraudulent act.

Based on the analysis, we track the contractors, employees, and learn about the unusual earning or payment. When the amount or earning can’t be traced directly, we check the other aspects of the suspected person, which appears to be unusual. This leads to the final targeting of the fraudster, where we gather enough evidence to prove him guilty.

We provide the client with the report that fulfills the purpose of the forensic audit.

We include a summary of evidence providing information about the fraud and fraudsters involved in it.

It also provides complete information about the financial impact and loss suffered due to fraud. Along with this, we also add the measures the company needs to take to put such frauds to an end.

Our Forensic Accounting and Fraud Investigation Techniques

There are various areas of forensic investigation, such as forensic auditing/accounting, forensic science, etc.

Talking about the relevant area, which is forensic accounting- we have learned and utilized all significant forensic auditing techniques and Fraud Investigation Techniques.

Our Forensic audit services include various reviews like capital expenditure review, financial records review, expense review, and computer-assisted reviews.

We utilize this technique for the selection of unusual transactions for examination.  Using this technique, we identify the data patterns which highlight the transactions that seem to be fraudulent. However, the major use of this law is to reduce the sampling risk. It is further combined with other techniques for accuracy.

Relative Size Factor is another technique that we use to validate the results of our first technique. The relative size factor (RSF) is a powerful technique for detecting errors.  It helps to identify all unusual transactions which are out of the normal range. We then make an in-depth study of such unusual transactions to identify misappropriation or fraud.

Ratio analysis helps understand if the financial data follow a normal and natural pattern. It helps us to examine the data to track down deceitful transactions. It is a highly effective technique used by N R Doshi and Partners for finding out the specific transactions that appear abnormal.

Our trend analysis technique is efficient when there is a reason to believe that fraud is taking place over a long period.

We study the trend and draw relationships between different aspects and check whether any of them is unusual. Wherever an unusual link between the two aspects is discovered, those areas are studied thoroughly. The examination may directly lead to the core of fraud.

Our expert forensic auditors first work to understand how your company handles the data and its patterns. It is a necessary technique when there are complex transactions and numerous points where the exchange takes place.

We first work to break down the complex variables into simpler ones and define the patterns using our proprietary software tool. Hence, it filters the data showing us the uncommon entries. Further, the filtered data is compared using other techniques like relative size factor technique if required.

For cracking down the data pattern, various techniques are used along with data mining, such as standard deviation, predictive modeling, etc.

Optimize your business processes

Achieve higher operational efficiencies
with our forensic audit services

NR Doshi Icon Why N R Doshi and Partners?

N R Doshi and Partners, without doubt, has in-depth knowledge of forensic accounting and forensic auditing. Our years of on-hand experience in fraud investigation and learning will be advantageous to keep your business safe from fraudulent acts. We have a team of Certified Forensic Examiners (CFE) to carry out the forensic audit as per the global standards and best practices.

We are not only experienced with the forensic audit but external audit, IT audit, internal audit, compliance audit, etc. too. We have been working as auditors for more than three decades. During the whole period, we have kept an eagle’s eye on changing methodologies of frauds and countered them with our skills and auditing abilities.

Our Strength

  • We have years of experience in performing forensic audits providing us with in-depth information on frauds of different natures. We have encountered them, learned them, found the source, and implemented techniques to avoid them for the future.
  • We have worked with small businesses as well as large enterprises in different sectors. This has provided us with the idea of data flow and points where frauds may occur. Therefore, it makes it easier as well as less time-consuming for us to detect the fraud.
  • Without a doubt, our team is our strength as they have supported the company in all the challenging tasks and never disappointed us. We have faith in our team members who are determined to overcome any hurdle they face while serving our clients.

Testimonials

N R Doshi and Partners not only helped us to find out the fraud and the fraudster, but they also explained to us how the culprit was able to conduct this fraud. They even worked to minimize the security risks, and till now, we haven't faced a single issue like that. What more could we have asked for?
forensic audit 1
We approached N R Doshi with the request to check out our ongoing business processes. We were experiencing a sudden decrement in our profit, but we were unable to detect the reason. We were not even sure whether it is a fraud or inefficiency of our business operations. However, this got cleared in a couple of days after the NRD team detected the fraud. We thank and recommend N R Doshi as they were very determined to provide us with top-notch service.
forensic audit 2
N R Doshi and Partners' auditors not only helped us to find the fraud and culprit but also assisted us with the court proceeding. They detected the core shortcomings of our internal controls, which culprit misused for conducting fraud. Now, we regularly take the benefit of NRD's internal audit service. I recommend not only their forensic audit service but also the other audit services.
forensic audit 3
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FAQs

Why is an internal team not suitable for Forensic Auditing?

An internal team may give a biased opinion or even deny the detection of fraud. The company may never know the involvement of an internal member. Therefore, to have a fair picture, we would recommend an external team conducts forensic auditing.

How much time the NRD team needs to complete the Forensic Auditing?

We may prioritize the forensic audit if the assumed loss and fraud seem to have a high impact on the company. However, usually, the time for completing the audit process depends upon the nature of the business, diversity of business operations, size of the company, number of transaction points, the complexity of data, and many more factors.

Identifying Unusual. Detecting Frauds. Implementing Precautions.

That’s how we help to save your business
from Frauds and Mischief!

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