Forensic reviews and financial statement audits; how do they differ?
• Overview of the audit • An audit, usually conducted annually, is a properly planned and conducted independent outside examination of financial statements, permitting a chartered accountant to provide an opinion as to whether the financial statements present fairly the results for the period and the financial position at the end of that period on a basis consistent with prior years and in accordance with Generally Accepted Accounting Principles (GAAP). • The auditors opinion as to whether the financial statements “present fairly” the results for that period and the period-end position does not mean that the auditors have addressed transactions that are below a certain size or scope, in that they are not considered “material” to the financial statements. • Auditors are clear that it is not their responsibility to detect fraud or illegal acts. That is considered to be the responsibility of management through its system of internal control and its code of corporate conduct. • However, wh
