Forensic Accounting & Fraud Prevention

Introduction   Fraud is intentional deception made for personal gain or to damage another individual. Defrauding people or entities of money or valuables is a common purpose of fraud.   The term ‘forensic ‘has usually attracted an unfortunate connotation with the morbid world of forensic medicine. Forensic accounting shares only one thread common with forensic pathology. That common denominator is the pursuit of evidence that will stand the rigorous scrutiny that the rules of evidence and procedure demand for its admission as evidence before the courts.                The integration of accounting, auditing and investigative skills yields the specialty known as Forensic Accounting.  It is the application of accounting methods to the tracking and collection of forensic eviden ...

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System Development Audit

It is a process of setting and developing the application, the computer system, built on the basis on business requirement. As an IS Auditor, the following could be reviewed: System Planning & Feasibility Audit: Every application is designed after considering the various areas of feasibility and the factors ranging from Economic, Cost Benefit Analysis, Technical analysis Critical success factor methods, business system planning, etc. Development & Design Audit: Development is verified and policies are establishment and various controls are placed. Adherence to benchmark standards and Quality of output is to be ensured. System Acceptance Audit: A comprehensive test should be conducted to achieve system planning System Maintenance Audit: This is to ensure that the systems are kept ab ...

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Supply Chain Management

The supply chain management encompasses all activities associated with the transformation of goods from the raw material stage to the final stage. It involves planning, design and control of the flow of material, information and finance.        Why is SCM strategy important for an Organization? Supply Chain Strategies are the critical backbone to Business Organizations today. Effective Market coverage, Availability of Products at locations that hold the key to revenue recognition depends upon the effectiveness of Supply Chain Strategy rolled out. It is very simply stated, when a product is introduced in the market and advertised, the entire market in the country and all the sales counters need to have the product where the customer can buy and take delivery. Any glitch in the product not b ...

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Internal Audit Plan of a Manufacturing Company for Purchase Department

Purchasing – a high-risk area subject to fraud – where an organization spent a significant amount of its money and can heavily impact the company’s quality, Environmental & safety objectives & targets. It is the first and most basic nature of expenditure, that any manufacturing company is required to incur, which is in direct proportion to their manufacture/production activity. Hence audit of this area for a manufacturing organization if of high importance and care to be taken while auditing this area. During the preliminary survey, the auditor should gain an understanding of how purchasing occurs within an organization. Audit Objectives/Checking: Requisition Note – An internal company document used in the purchasing process to authorize the requisition of materials pri ...

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Scope of Internal/Concurrent Audits of Banks

Concurrent Audit – on the spot examination of transactions & activities at very frequent intervals to assure substantive checking in key areas rather than test checking. In the present scenario, risk-prone area to be covered under concurrent audit. After the recent Nirav Modi PNB Fraud and Vijay Mallya Case, a question has been put on the auditors, “Who will audit the auditors?” To nullify this requirement, determining the scope of Audit becomes a necessity. In this Article, we have briefed the scope of a concurrent audit, which will be elaborated in the next articles. The scope of Concurrent Audit Generally, an auditor should cover all the areas of operations of the bank under Concurrent Audit. Following are the areas, which are commonly found in the scope/guidelines issued by almost ...

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