Sanjeev Dua & Associates — Chartered Accountants
Investigative Examination

Forensic Audit

Specialized investigative accounting examinations, transaction reconstruction, fund diversion inquiry, and factual dispute advisory adhering to professional forensic standards.

Scope of Practice

What We Cover

Approved statutory and professional services under this practice area.

Forensic Audit
Practice Overview

Service Overview

Forensic auditing is a specialized discipline integrating accounting, auditing, and investigative techniques to conduct detailed examinations of financial records. Unlike standard audits that evaluate overall financial fairness on a sample basis, forensic examinations are hypothesis-driven and focused on identifying specific irregularities, transaction anomalies, or fund diversions.

Sanjeev Dua & Associates undertakes forensic audit engagements in accordance with the Forensic Accounting and Investigation Standards (FAIS) issued by the Institute of Chartered Accountants of India, applying advanced financial analytics to examine complex transaction trails and deliver objective factual findings.

Applicability

Who May Require This Service

General commercial circumstances and entity types subject to this framework.

Corporate boards of directors and audit committees addressing suspected internal irregularities or compliance breaches.
Commercial lenders, banks, and financial institutions investigating potential asset dissipation or fund siphoning.
Parties engaged in corporate partnership dissolutions, shareholder disputes, or commercial arbitration.
Insolvency professionals requiring independent transaction reviews under prevailing corporate insolvency frameworks.
Engagement Workflow

Typical Process & Engagement Approach

How our professional team coordinates and executes assignments.

1. Scoping & Hypothesis Formulation

Establishing engagement terms, identifying the scope of inquiry, and formulating preliminary investigative hypotheses.

2. Data Extraction & Evidence Preservation

Securing electronic accounting records, banking transactions, and documentary evidence following chain of custody protocols.

3. Transaction Tracing & Forensic Analytics

Deploying financial analytics, transaction pattern recognition, and ledger reconstruction to trace fund flows.

4. Factual Synthesis & Independent Reporting

Synthesizing verified factual findings into an objective, evidence-based report suitable for stakeholder review.

Documentation

Information & Documents Typically Required

Standard records and background materials necessary for assessment and filing.

Detailed electronic accounting ledgers, journal entries, and audit trail logs
Complete historical bank statements across all operating and related-party accounts
Vendor contracts, purchase orders, delivery notes, and payment authorizations
Email records, formal communications, and internal approval documentation
Corporate governance records, board minutes, and secretarial filings
Methodology

Professional Approach & Standards

Our forensic examinations are conducted with strict confidentiality, procedural independence, and evidentiary discipline. We adhere closely to ICAI Forensic Accounting and Investigation Standards (FAIS), ensuring that all findings are supported by verifiable, corroborative documentation.

Frequently Asked Questions

Common Questions

Key answers regarding service scope, regulatory relevance, and procedural steps.

How does a forensic audit differ fundamentally from a statutory financial audit?

A statutory audit provides reasonable assurance on whether financial statements as a whole are free from material misstatement, operating primarily on sample testing. A forensic audit is an exhaustive, specific investigation aimed at uncovering evidence regarding particular suspected transactions, asset diversions, or control breaches.

What standards govern the conduct of forensic audits by Chartered Accountants?

Forensic audits in India are conducted under the Forensic Accounting and Investigation Standards (FAIS) established by the Digital Accounting and Assurance Board of the ICAI, covering planning, evidence collection, analytics, and reporting.

Can forensic audit reports be utilized in legal or dispute resolution proceedings?

Yes. Forensic audit reports provide objective, structured financial evidence and transaction reconstructions that can be submitted to management, boards, arbitration panels, or legal forums to clarify disputed financial facts.

Complementary Services

Related Practice Areas

Interconnected statutory and corporate advisory disciplines.

Audit & Assurance

Statutory and internal audit disciplines providing broad organizational assurance and governance reviews.

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Company Law Matters

Corporate governance and statutory secretarial compliance under the Companies Act.

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Discuss Your Requirements with Our Office

Contact the firm to discuss your specific accounting, taxation, or compliance requirements with our professional team.

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