No system is fool-proof, there are always some loopholes in every organization’s infrastructure. Any business can be affected by corruption, bribery and internal or external fraud by the employees, management, shareholders and partners. The consequences and effects of fraud and corruption might be a serious risk to the reputation of the organization. Businesses operating in Dubai might have to face any of such issues as well. This is where Forensic Audit in Dubai becomes mandatory.
What Is Forensic Audit?
We often come across television and the internet with various reports of scams and fraud all in small and large level enterprises. Scammers and fraudsters are crooked with a criminal mindset, thus tracking corruption within an organization isn’t as easy as it seems.
A forensic audit is an evaluation and examination of an individual’s or firm’s financial records. Although fraud investigation isn’t an innovative concept, the demand for accounting and auditing services and fraud prevention is rapidly increasing because of the modern world’s crime.
The audit within a business helps track down the matters related to corruption, financial crimes, fraud and commercial disputes. The process also involves assessing the root causes of financial miscalculations, reduction in company revenue, alleged employee fraud, increase in production costs and other operational matters. Not to forget, businesses will need to hire an experienced Forensic Audit Service in Dubai who can successfully carry out the auditing process for a company.
Forensic Audit in Dubai
Forensic Audit in Dubai involves financial disputes, corporate crime, litigation, fraud detection, and constantly rising data security issues. Embezzlement, fraud, financial crime, and breaches of rules and regulations are an unavoidable part of any business operating in the UAE.
Forensic Audit Services in Dubai
The number of fraudulent and scams are increasing, so does the need for Forensic Auditing services in all UAE and other countries across the globe. Businesses often look for auditing service providers that are experts in finding out finical errors while remaining transparent so they can give reliable advice and suggest the best solution for the business.
A few core auditing services include:
- Royalty Audits
- Business Analytics
- Discovery Assistance
- Corruption & bribery
- Damage Computation
- Anti-money laundering
- Suspicious transactions
- Asset misappropriation
- Financial reporting fraud
- Expert Witness Testimony
- Financial misrepresentation
- Determination of Compliance
- SEC & regulatory investigations
- Fraud Detection and claims Analysis
Hiring Forensic Audit Firm in Dubai
When there is criminality or fraud in the business, a forensic audit is needed to find out the root cause of the act. This may include fraud perpetrated by owners, partners, shareholders, management or employees of the company. Financial auditing deals with the highest level of auditing and accounting processes for a company. A Forensic Audit Firm in Dubai will investigate incidents of bribery, fraud or corruption by examining financial transactions and records within a business.
Various auditing and accounting services providers are working in the UAE with an aim to provide quantifiable and qualitative investigative reports to the businesses to help them assess the risks. They help in conducting a thorough investigating process to examine the suspected financial transactions.
Who Initiate Forensic Auditing?
The major purpose of auditing is to find out the financial errors as stated above. Taking it further, businesses are often conducted in partnerships – so what if a business finds that a partner or a shareholder is involved in corruption or scam? In such a case, businesses need to hire an external auditing service provider so that they can find out the culprit transparently without getting under any pressure.
An external auditor will not only help find out the actual cause of the financial fraud but will help in meeting the industry standards. In Dubai, sometimes Financial Institutions, Regulatory Authorities, Banks, and Courts are usually the ones who order it.
Benefits Forensic Audit in Dubai
Unlike the regular audit, forensic audit is different. The regular audit may be utilized for presentation; however, the forensic audit report is used for a legal proceeding or in a court of law.
The expert forensic auditing services in Dubai can help bring the following benefits for a business:
- Rebuild business reputation.
- Control corruption, fraud, and irregularities.
- Expert advice in litigation matters and disputes.
- Shape reliable and agile response to financial misconduct.
- Plan an effective and constructive business financial strategy.
- Special investigations to build strong lawsuit cases with evidence and facts.
- Enable your business to identify future financial opportunities and manage the crises.
Why Conducting Forensic Audit in UAE
Forensic auditing helps businesses not only with finding out financial faults but help them streamline their financial strategies for long period. Here is what organizations will get from forensic auditing:
- It Helps Reduce Risks
The financial auditor can help ensure the future exploitation risk will be reduced. It will help protect the best interests of a company before even a scam or fraudulent activity takes place.
- Minimized Losses
Companies should go for forensic auditing because it is an effective way that can help minimize and reduce unnecessary financial losses.
- Improves Efficiency
Forensic auditors play a vital role when it comes to evaluating and examining current financial processes and standards. In addition to that, it can also help identify more efficient and result-driven solutions for a business.
Steps of Conducting Forensic Audit in UAE
The following are the major steps in forensic auditing
- Audit Investigation Planning
- To attain the investigation’s objectives, effective and detailed planning is required.
- Calculation of the monetary loss suffered.
- Certain approaches and methods will be applied.
- The time frame in which the fraud took place must be determined.
- Identifying system flaws and fraud-causing controls within an organization.
- Gathering Evidence
- The proof obtained by the auditing team must disclose the identity of the criminal.
- Evidence should not be tampered with or changed in any way, hence must be concrete.
- Evidence must be kept safe from any harm or attack and protected.
- Comprehensive information about the scam.
- A thorough account of the evidence gathered.
- Description of how the heist was planned and carried out.
- The scope of the examination must be stated clearly in the report.
- Suggestions and recommendations for avoiding any fraudulent scams in future.
- Presentation in The Court of Law
- The Forensic Auditors will be held responsible for presenting the evidence gathered in court.
- They will also have to explain how the accused were recognized honestly.
- Provide all essential and required court backing for the investigation.
Forensic Audit Reports in Dubai
According to the UAE laws, businesses must get the books of accounts audited every year and present their audit reports. Hence every organization listed under the UAE law should get their accounts audited by a registered auditor.
How Avyanco Forensic Auditors Can Help You?
With deception or financial scams impacting businesses across the globe, the MENA region also considers it as a major challenge to deal with. A forensic audit consultant in Dubai, can not only help you with examining any fraud that happened in your organization but will help build solid anti-fraud strategies to reduce further risks and maximize financial gains ultimately.