What Similarities Exist between Financial Statement Audit and Forensic Accounting?
In spite of these lengthy differences, there are similarities in the ways and methods of carrying out duties and responsibilities as a means to attain the objectives: (1) The financial accountant also pursues the indications of fraud, prepares a report on the extent verified, and makes recommendations for further investigations. However, these functions are performed as a result of the financial audit review and not as the auditor’s main goal. (2) Financial audit examination like forensic accounting includes verification and inspection of supporting documents to ascertain accuracy of claims against the company. (3) Calculating valuations of assets to ensure that the company’s net worth are fairly valued, using methods prescribed by fundamental and GAAP rules. (4) Reviewing methods of allowing credit, the effectiveness of enforcing credit requirements, the quality of creditors, and efficiency of collection efforts. (5) Checking on compliance with statutory and regulatory requirements by
