Fraud investigation audit is conducted to detect, trace, quantify and prevent fraud, terror finance, and money laundering. It involves a thorough examination of the financial records of a company to discover financial irregularities. It also determines any financial errors, identifies the suspect, obtains notable evidence against the suspect, and provides a suitable recommendation to prevent such frauds in future.

Generally, a fraud investigating auditor is known as a forensic auditor, who is specialized in the investigation of audits of the firm. He/she scrutinizes the financial records of a company, in order to trace the suspect and his/her assets.

Fraud Detection Methods

1. Brainstorming Session

In this process, the partner in charge of the audit conducts a meeting to discuss how companies commit fraud. An experienced investigation specialist calls for the meeting to inform about other frauds committed by similar organizations and help identify the firm’s risk factors.

2. Testing of Journal Entry

The auditors check the company’s journal entries for any sign of manipulation. Once the auditor gains an understanding of the company’s controls and procedures, he/she checks and asks for supporting documentation that validates each journal entry.

3. Accounting Estimates

Accounting estimates are the most likely place for frauds. As accounting estimates are subjective, management can influence accounting estimates to manipulate the financial statements. Initially, an auditor checks if there is any change in the methodology of accounting estimates from last year. If there is any change, it could be a sign of manipulation. He/she also checks the directionalities of the estimates as a whole.

Advantages of a Fraud Investigation Audit Report

  • An internal fraud investigation helps identify any internal frauds
  • It strengthens the organization’s control mechanism
  • A fraud investigation audit report can save a company from long-term damage and helps to retain the reputation of the organization
  • It acts as the factual information that can be used as a document in a court of law

JAXA Fraud Investigation Audit services in Dubai, UAE

  • Evaluating the suspected financial and operational reports of the organization
  • Helping the organization in fraud prevention by conducting an investigative review
  • Preparing a fraud investigation report based on investigation reviews
  • Recommendation of relative action to prevent frauds in the future

Why JAXA?

JAXA is a financial consultant in Dubai, offering a wide range of services including accounting, auditing, software consultancy, and management. At JAXA, we help our clients in the analysis of company controls, processes and procedures to identify the suspected fraud. We also prepare a detailed fraud investigation report within a few days. We have been providing the best audit & assurance services in Dubai and other areas as well.

For any fraud investigation audit services in Dubai, contact us – we’d be glad to assist.

FAQs

What is the difference between an audit and a fraud investigation audit?

The main difference between an audit and a fraud investigation audit lies in the purpose of the audit. A financial audit is done to confirm the validity of the financial records, while an investigation audit relates directly to an issue defined by the client.

What is fidelity insurance?

Fidelity insurance is a type of business insurance that protects the insured against loss of property or money resulting from fraudulent acts committed by an employee.