Training on Forensic Audit
Arranged by: IAD, BRAC
Presented By: Nayan Mia FCA
Some points can be added in the Training Material:
1. Introduction of forensic audit and differentiate with general audit.
2. Process of Forensic audit ?
3.
4. Different Model of FA (Fraud Diamond and Fraud Rectangle, Fraud Triangle
model).
5. Should detail discussion on types of Fraud, detail Investigation Process, related
Legal aspects, Various Prevention Strategies
6. Reduce excessive textual content and add more visuals, charts, and infographics
7. Should Include role-playing exercises or mock forensic audit interviews for
practical learning.
8. Should present on real-world data analysis exercises on fraud detection
9. Have to discuss how artificial intelligence and machine learning are used in
forensic audits.
10. Should cover cyber fraud, phishing scam, blockchain fraud, and digital payment
fraud.
11. Give Understanding on fraudster psychology, deception detection, and forensic
interviews techniques.
12. Technique on how we analysis data in Forensic Audit Using Excel, Power BI, and
other tools for forensic data analysis and related forensic audit tools.
13. We need the understanding on fraudster Behavioral Analysis, like, Understanding
on fraudster psychology, deception detection, and forensic interviews.
14. Need understanding on how to Trace money laundering, shell companies, and
Ponzi schemes
15. We should discuss on how auditors should respond when faced with ethical
challenges.
16. Should Discuss on country-specific regulations, financial laws, and enforcement
mechanisms.
17. Need Guidance on presenting forensic findings in court as Witness.
18. Need understanding on report writing format and types of documentation of
observation (Testimony, Audio recording, video recording and other related docs)
1. Introduction to Forensic Audit

Definition: Forensic auditing is an investigative audit aimed at detecting and
preventing financial fraud, corruption, and mismanagement.

Purpose & Importance: Helps organizations detect financial misconduct, ensures
compliance, and provides evidence for legal proceedings.

Scope: Covers fraud detection, asset tracing, corruption investigations, and
litigation support.
2. Key Objectives of Forensic Audit

Identifying financial misstatements and fraud

Collecting evidence for legal action

Assessing internal controls to prevent fraud

Reporting findings to stakeholders, regulators, or law enforcement
3. Types of Financial Fraud in Forensic Auditing

Asset Misappropriation: Theft of cash, fraudulent disbursements, inventory fraud

Financial Statement
overstatement

Corruption: Bribery, conflict of interest, kickbacks, procurement fraud

Cyber Fraud & Digital Financial Crimes: Hacking, phishing, online transaction
fraud
Fraud:
Revenue
recognition
manipulation,
asset
4. The Forensic Audit Process

Planning & Scope Determination: Identifying objectives, stakeholders, and risks

Evidence Collection & Analysis: Reviewing financial documents, digital
forensics, interviews

Investigation Techniques: Red flags identification, data analytics, forensic
accounting tools

Reporting & Legal Proceedings: Preparing reports, legal documentation,
presenting findings in court
5. Tools & Techniques Used in Forensic Auditing

Data Analytics & AI: Detecting anomalies, transaction monitoring

Digital Forensics: Recovering deleted files, email tracing

Interview & Interrogation Methods: Fraud suspect questioning techniques

Legal Framework & Standards: Compliance with regulatory laws (IFRS, SOX,
AML, etc.)
6. Case Studies of Forensic Audits

Enron Scandal: Accounting fraud & financial manipulation

Wirecard Scandal: Fake transactions & financial misrepresentation

Local Case Study (if applicable): Recent forensic audit cases in your industry
7. Challenges in Forensic Auditing

Lack of cooperation from stakeholders

Complexity in financial data analysis

Legal & regulatory constraints

Evolving nature of cyber fraud
8. Preventive Measures & Internal Controls

Strengthening internal controls & risk management

Conducting regular forensic audits & fraud risk assessments

Implementing whistleblower mechanisms

Utilizing advanced forensic technology
9. Conclusion & Recommendations

Importance of forensic audits in corporate governance

Need for trained forensic auditors & continuous professional development

Future trends: AI, blockchain, and automation in forensic auditing
10. Q&A Session

Open the floor for discussion & audience questions