SHORT ANSWER · FORENSIC AUDIT
What is a forensic audit?
A forensic audit is an examination of financial records to find and document evidence of a specific problem, such as fraud or hidden money, in a form that can support a legal case or an investigation. Unlike a regular audit, it follows individual transactions, often back to the bank, card and check statements themselves.
DEFINITION
What is a forensic audit?
A forensic audit is an examination of financial records to find and document evidence of a specific problem, such as fraud or hidden money, in a form that can support a legal case or investigation.
HOW IT WORKS
How does a forensic audit work?
It starts with a question and ends with a report. Choosing software for the document work? See the best forensic accounting software.
- 1
Set the question
Where did the money go, or what was left out? The question sets the scope.
- 2
Collect the records
Bank, card, check and brokerage statements, ledgers and anything else the matter needs.
- 3
Prove and rebuild
Each statement is tied to its printed balances, then the months are chained so missing ones show up.
- 4
Trace and analyze
Follow payments and transfers row by row, against the question.
- 5
Report
Findings go into a report, with schedules a reader can check.
ZeraBooks builds the workflow around your matters and your template for free. No development charge, whether it’s a forensic department or one person.
WORKED NUMBER
What does proving one statement look like?
Before anything is traced, each statement has to add up on its own. This is checking ••4417 for March 2025 in Matter 25-117, a made-up matter.
| Line | Amount |
|---|---|
| Opening balance | 14,902.35 |
| Money in | +8,120.00 |
| Money out | −4,781.80 |
| Printed closing balance | 18,240.55 |
April was never produced in this matter. March closes at 18,240.55 and May opens at 21,905.10, a 3,664.55 hole that only the balance chain exposes.
NOT A REGULAR AUDIT
Is a forensic audit the same as a financial audit?
No. A financial audit gives an opinion on a set of financial statements, while a forensic audit answers one question with evidence. The full side-by-side is in what is the difference between forensic accounting and auditing. This isn’t legal advice, and whether findings are used in court is up to the lawyers and the court.
Most of the cost sits in the record work, which is why how much does a forensic accountant cost depends on the documents.
Who does a forensic audit?
A forensic accountant, often a CPA or a Certified Fraud Examiner, working for a lawyer, a company, an insurer or a court.
How long does a forensic audit take?
It depends on the question and the records. A matter with years of statements takes longer than one with a few months, and missing records add time.
Does ZeraBooks do forensic audits?
No. ZeraBooks proves the statements and delivers them in your workpaper. The findings and the report are the accountant’s.
FREE CUSTOM BUILD
Prove every statement first.
Then trace.
Send one past matter and see every statement tied and every gap flagged in 2 to 3 days.