{"id":10050,"date":"2023-04-22T04:37:58","date_gmt":"2023-04-21T23:07:58","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=10050"},"modified":"2025-03-29T17:03:14","modified_gmt":"2025-03-29T11:33:14","slug":"what-is-forensic-auditing","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/what-is-forensic-auditing\/","title":{"rendered":"What is Forensic Auditing?"},"content":{"rendered":"<h2><strong>About Forensic Auditing:<\/strong><\/h2>\n<ul>\n<li><strong>What is it?<\/strong> It is an analysis and <strong>review of the financial records of a company or person to extract facts which can be used in a court of law.<\/strong><\/li>\n<li>It is a speciality in the accounting industry, and most <strong>major accounting firms have a department of forensic auditing<\/strong>.\u00a0<\/li>\n<li><strong>Forensic audits require<\/strong> accounting and auditing procedures and <strong>expert knowledge about the legal framework<\/strong> of such an audit.<\/li>\n<li><strong>Why Forensic Auditing?<\/strong> A forensic audit is often <strong>conducted to prosecute a party for fraud, embezzlement, or other financial crimes<\/strong>.<\/li>\n<li>In the process of a forensic audit, the <strong>auditor may be called to serve as an expert witness <\/strong>during trial proceedings.\u00a0<\/li>\n<li>Forensic audits could <strong>also involve situations that do not include financial fraud<\/strong>, such as disputes related to bankruptcy filings, business closures, and divorces.<\/li>\n<li>The forensic audit process is <strong>similar to a traditional financial audit<\/strong> \u2014 planning, gathering evidence, and writing a report \u2014 <strong>with the additional step of a possible appearance in court.\u00a0<\/strong><\/li>\n<li><strong>Forensic audit vs Internal audit:<\/strong>\n<ul>\n<li><strong>Forensic auditing<\/strong> is \u201can <strong>examination of financial records to find any illegal financial activity<\/strong>,\u201d while an <strong>internal audit<\/strong> is defined as \u201can <strong>examination of a company&#8217;s accounts<\/strong> or activities <strong>by its own accountants or managers.\u201d<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><strong>\u00a0Key facts about National Stock Exchange of India Limited (NSE):<\/strong><\/h3>\n<ul>\n<li>It is <strong>India&#8217;s leading financial exchange<\/strong>, with <strong>headquarters in Mumbai<\/strong>.<\/li>\n<li>It was <strong>incorporated in 1992<\/strong> and, since then, has evolved into an advanced, <strong>automated, electronic system<\/strong> <strong>offering trading facilities<\/strong> to investors across the country.<\/li>\n<li>It was <strong>set up by an assembly of leading financial institutions<\/strong> at the recommendations formulated by <strong>Pherwani Committee<\/strong>.<\/li>\n<li>In 2021, this exchange system <strong>ranked fourth in the world according to the metric of its trading volume<\/strong>.<\/li>\n<li>Currently, NSE conducts transactions in the<strong> wholesale debt, equity, and derivative markets<\/strong>.<\/li>\n<li>One of the more popular offerings is the <strong>NIFTY 50 Index<\/strong>, which tracks the largest assets in the Indian equity market.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<hr \/>\n<h3><strong>Q1) What is auditing?<\/strong><\/h3>\n<p>Audit is the examination or inspection of various books of accounts by an auditor followed by physical checking of inventory to make sure that all departments are following documented system of recording transactions. It is done to ascertain the accuracy of financial statements provided by the organisation.<\/p>\n<p><strong>Source:\u00a0<\/strong><a href=\"https:\/\/www.ndtv.com\/business\/nse-releases-framework-for-appointing-forensic-auditors-3967799\" target=\"_blank\" rel=\"nofollow noopener\"><u>NSE Releases Framework For Appointing Forensic Auditors<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Forensic Auditing is an analysis and review of financial records of a company or person to extract facts.<\/p>\n","protected":false},"author":5,"featured_media":10051,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-10050","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/10050","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=10050"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/10050\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/10051"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=10050"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=10050"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=10050"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}