Forensics & Investigations for the Internal Auditors

Forensics & Investigations for the Internal Auditors

The role of Forensics and Fraud Investigations has remained an integral part of the Internal Audit. In the Middle East, management predominantly had taken the position of zero tolerance for breach of trust, misconduct, unethical acts, and fraud. The Institute of Internal Auditors Doha Chapter recently conducted Forensic and investigation training for members. 

Harish Dua is an Audit and Business professional specializing in Ethics, Internal Audits, and Investigations. He is a Chartered Accountant from England, a Certified Public Accountant from the USA, and holds an MBA from the University of Connecticut, USA. Dua is also a Certified Fraud Examiner from the Association of Certified Fraud Examiners (USA). Harish had conducted over 500 fraud investigations in his 38 years as an auditor

"Forensic accounting is the discovery and evaluation of evidence by a professional to interpret and communicate findings suitable for a court of law. The objective is to conclude (but not express an opinion) and support a legal case through scrutiny of the evidence," Dua said in his opening remarks.

Audit Vs. Forensics Vs. Investigation was elaborated where a statutory audit expresses an independent opinion. Internal Audit goes beyond financials to operations, and investigation is primarily fraud or irregularity related to ascertaining guilt. Each has different objectives, focus, approach, target, skills, and outcomes.   

Forensic accounting services include financial statement manipulations, fund diversions, assets tracing, anti-money laundering, tax evasion, valuations, related party transactions, etc. The significant attributes required are independence, objectivity, due professional care, skills, and competencies.

"The fact that fraud is usually concealed can make it very difficult to detect. Professionals must identify events or conditions that indicate an incentive or pressure to commit fraud (the motive) or provide the situations to perpetuate (the opportunity)," Dua stated to emphasize the fraud risk indicators.

The fraud risk process involves preliminary understanding, assigning skill sets, prioritizing work on areas most vulnerable, and giving due consideration to findings in reports.

"Forensic accounting is a new domain closely related to frauds and investigations. New concepts and requirements related to laws and regulations, applying hypotheses, work procedures, conducting interviews, data analysis, evidence recovery, and reporting were elucidated with examples. The speaker imparted various tips to improve proficiency in this area," said Sundaresan Rajeswar, a Board Member of the IIA who coordinated the event.

Girish Jain, the Seminar chair, welcomed the gathering, Muralikrishna was technical support,  Rajeswar handled the Q&A session, and Aisha Rafique was the liaison with the speaker. The event had 100 members in attendance.  

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