N R Doshi and Partners has provided Forensic Audit Services in UAE for over 36 years. Apart from having a team of dedicated & experienced individuals with accounting/auditing skills, we understand the relevant legal framework.
NR Doshi’s experienced auditors will track down the source of the fraud using the skills below:
- Financial acuity
- Investigative skills
- Detective skills
Diving deep into your financial records, we filter transactions using various parameters and identify the ones with red flags. Based on the findings, we find out where the fraud’s source is.
What is a Forensic Audit?
A professional forensic auditor investigates a company’s financial statement records and company operations to achieve the following objectives:
- Detect fraud
- Find evidence that you can use in a court of law
Companies require a financial audit in the following cases:
- Occurrence of embezzlement, financial crime, or fraud.
- When companies want to prosecute fraudulent individuals.
The main objective of the forensic audit is to identify the fraudster, his modus operandi, the amount embezzled, and the evidence that auditors can use in a court of law.
Forensic auditing includes various activities, and it requires the active participation of the client and the forensic auditor.
Generally, companies choose an external firm such as NR Doshi and Partners to conduct a forensic audit. By entrusting the task to an experienced and responsible auditing firm, a firm can expect a fruitful and unbiased investigation.
Significance of N R Doshi's Forensic Audit Service
When someone mentions – forensic audit services in the UAE, NR Doshi is one of the few names that come to mind. We have been conducting External Audit Services in UAE, and forensic audits for companies for over 36 years. The main aim of forensic audits is to help businesses control/prevent fraudulent acts.
Technology has evolved in the past few years, and so have fraudsters who devise newer ways to embezzle funds, deceive companies and manipulate them for vested interests. Effective forensic auditing can identify the cause & the culprit.
Since forensic auditing is crucial, companies should not compromise and settle for mediocre service providers.
NR Doshi & Partners follows a methodical and tailor-made approach to forensic audits. First, we identify the fraud and gather evidence against the fraudster to determine the affected business aspects and the financial setbacks inflicted by the fraud.
Besides the official business documentation, our auditors perform plenty of fieldwork to gather information and corroborate its authenticity. Based on the official document and gathered information, we march forward, searching for more evidence.
Our forensic audit services will identify not only the reason for the fraud but also the culprit. Our innovative and systematic forensic audit techniques will furnish the required evidence to initiate legal proceedings against the culprit.
Our forensic audit services will highlight malpractices and fraud in your organization that have been prevalent for years. Upon identification, we will suggest measures for rectification and damage control.
NR Doshi’s forensic audit services will accomplish the following:
- Highlight the weaknesses & errors.
- Suggest measures to improve internal controls and security standards.
- Eliminate the shortcomings in your internal controls.
- Boost physical and logical security.
- Help with risk mitigation.
- Implement measures to prevent fraudulent activities in the future.
If we check your business operations regularly, there is a minimal chance that any fraud will occur. These measures will assure investors that your business is reliable, secure, and investment worthy
Optimize your business processes
Achieve higher operational efficiencies
with our forensic audit services
Types of Fraud for which We Conduct Forensic Audit
1) Cash Theft:
Cash theft is one of the most common frauds as it is easy to commit. Culprits usually misappropriate small amounts regularly to avoid everyone’s attention. However, it is easy for the investigating firms to identify the fraud and culprits because not many people have access to cash.
2) Fraudulent Disbursements:
Fraudulent disbursement is one of the most common frauds we have encountered. However, by analyzing every transaction carefully, we identify how the company funds are diverted to make payments to fictitious suppliers or employees.
3) Inventory Frauds:
We have found instances of such fraud when a client has extensive inventories. It is tough to detect fraud when there is no relevant data. Also, it becomes challenging to ascertain the timing of the fraud. We conduct interviews, apply our professional judgment, and use forensic audit tools.
4) Misuse of Assets:
Employees who misuse company assets for personal use are also guilty of fraud. A company can address this problem by exercising better governance of employees and assets.
Our auditors have dealt with many corruption frauds, three of which are mentioned below. They can occur irrespective of company size, and therefore, a company must regularly check its business operations to avoid fraud.
6) Conflict of Interest:
Conflict of interest occurs when an individual uses his influence for personal benefits or gains an undue advantage. Such acts can harm the company in many ways, including monetary damage or a dent in the company’s reputation.
Such fraud occurs when a person uses his influence over a situation in favor of specific individuals or entities in exchange for monetary gains. Therefore, during a forensic audit, we may need to consider the ‘unfortunate decision making’ as intentional and examine the bodies affected by it.
There can be a situation where a staff member from the company demands monetary benefit from any third party to turn the case in favor of third parties.
Financial Statement Fraud
Frauds are intentional material misstatements in official financial statements or accounts. Such misstatements in the financial statements hide the malpractices of some unscrupulous people, allowing them to stash away ill-gotten wealth. Such malpractices harm any organization because they damage its finances and reputation.
Also, the auditors may provide a negative opinion during the time of the external audit. Hence, we examine all your accounting records and transactions to find instances of such misstatements. Not only do we rectify these errors, but we also set up guidelines to prevent fraud in the future.
Our Process of Forensic Audit Services in UAE
Our Procedures for Forensic Audit Services in UAE
NR Doshi and Partners have over 36 years of experience in the UAE’s financial industry. Hence, you can trust our skills and experience. Our forensic auditors have investigated many kinds of fraud over the years, giving them extensive knowledge and experience. Moreover, we stay informed about the latest industry developments while using customized fraud investigation techniques, depending on the business and the type of audit.
When you contact us, we will analyze your business, pain points, and areas of suspicion. After both agree on the strategy, we will move forward.
When you approach us with a forensic audit request, our first task is to analyze the situation and discover the unusual events (per the evidence and initial discussion). We mark the fraud indicators, which help us to move forward.
We evaluate the unusual events or red flags to understand the nature of the investigation, the total time required, and the cost. Next, we conduct a preliminary complaint assessment based on our findings.
After a preliminary assessment, we define the objectives of the forensic investigation. Then, we create a strategy to conduct the investigation. We plan while keeping the following points in mind:
- Identifying the type of fraud.
- Ascertain whether it is a one-time fraud, periodical, or regular.
- Pinpointing the fraudster(s) involved.
- Gathering enough evidence to prove the fraud and fraudster(s) associated.
- Providing support to businesses and safeguarding them against such fraud.
According to the case’s facts and suspicions, we focus on specific areas of your business. We conduct due diligence and background checks of people (external and internal) associated with the relevant sectors/departments. Most importantly, we pay attention to details that indicate unusual or fraudulent activities.
Besides interviewing the employees, we also investigate the vendors, related organizations, and ‘potential’ facilitators associated with the fraudulent activity. We also request the third parties to provide us with the required documents per our audit rights. Additionally, we may also seek help from law enforcement agencies/bodies if needed.
We collect all the relevant data and necessary documents to proceed with the operation.
- First, we will conduct a thorough study of accounting records maintained by the company.
- Next, we carefully examine tender bids, proposals, employee CVs, and other related documents.
- Then, we assess the system information with proper authority without compromising data security.
- Lastly, we interview all the individuals that are on our suspect list.
We draft a robust analysis report to establish a robust base for further investigation based on our findings. This exercise also helps us to refine the initial theory and get to the bottom of fraudulent acts.
Based on the analysis, we track the contractors, and employees, while learning about suspicious earnings or payments. When we cannot trace the earnings amount directly, we check the other dubious aspects related to the suspect. This methodical approach helps us gather valuable evidence against the fraudster. Later, we use this evidence to frame charges and initiate legal proceedings against the fraudster.
We provide the client with the report that fulfills the purpose of the forensic audit. We include a summary of evidence providing information about the fraud and fraudsters involved.
It also provides complete information about the financial impact and losses incurred due to the fraud. Moreover, we also suggest measures that the company needs to implement to curb such fraudulent acts.
NR Doshi's Forensic Accounting and Fraud Investigation Techniques
A forensic investigation covers various aspects like forensic auditing/accounting, forensic science, etc. Our primary area of focus is forensic accounting. Over the years, we have learned and implemented several forensic auditing & fraud investigation techniques.
Our forensic audit services include the following reviews:
- Capital expenditure
- Financial records
- Computer-assisted reviews
We use this technique to identify unusual transactions and examine them further. Next, we identify the data patterns which highlight the seemingly fraudulent transactions. However, the principal use of this law is to reduce the sampling risk. To achieve optimal results, we combine this law with other techniques for accuracy.
The Relative Size Factor is another tool we employ to validate the results of our first technique while detecting significant errors. With this technique, we identify unusual transactions that are out of the normal range. Next, we conduct an in-depth study of such unusual transactions to identify misappropriation or fraud.
Ratio analysis helps understand whether financial data follow a normal and natural pattern. Also, it helps us to analyze the data to track deceitful transactions. N R Doshi and Partners use this powerful technique to identify dubious transactions.
Our trend analysis technique works when we have a reason to believe that fraud is being perpetrated over an extended period.
We study the trends, draw relationships between different aspects, and check whether any of them is unusual. Wherever we discover a unique link between the two aspects, we study them in detail. The examination may lead us to the fraud’s source.
First, our expert forensic audits work to understand how your company uses data and related patterns. This exercise is necessary when there are numerous transactions and points of exchange.
Then, we break down the complex variables into simpler parts and define the patterns using our proprietary software tool.
Hence, it filters the data showing us the uncommon entries. Further, if required, we compare the filtered data using other techniques like RSFT (Relative Size Factor Technique).
To crack down on the data patterns, we use various techniques like data mining, standard deviation, predictive modeling, etc.
Optimize your business processes
Achieve higher operational efficiencies
with our forensic audit services
Why N R Doshi and Partners?
At NR Doshi and Partners, our auditors have an in-depth knowledge of forensic accounting and auditing. With more than 36 years of on-hand experience in fraud investigation and learning, we can play a vital role in shielding your business against fraud.
We have a certified Forensic Examiners (CFE) team to carry out the forensic audit following global standards and best practices.
We have been working as auditors for over three decades. We keep a close watch on the changing market trends and technologies. Accordingly, we adapt to the changing fraud detection methodologies and blend them with our specialized skills and accounting expertise.
- NR Doshi has been in the finance industry for over 36 years. We have years of experience in providing many services, including forensic audits. Our extensive & diverse experience has provided us with the knowledge to understand, analyze and implement techniques to prevent fraud.
- Working in diverse sectors with businesses of all sizes/types has given us a fair idea of data flow and points of fraud occurrence. Therefore, fraud detection is relatively more straightforward and less time-consuming for us.
- Undoubtedly, our team is our strength as they have supported the company in all the challenging tasks and never disappointed us. We have faith in our team members, who are determined to overcome any hurdle they face while serving our clients.
- Undoubtedly, our team is our greatest strength. We have always emerged victorious no matter how big or challenging the task. At NR Doshi, our main priority is client satisfaction while adhering to project deadlines.
Testimonials: Forensic Audit | Fraud Investigation | Forensic Accounting
FAQs: Forensic Accounting Services
1) Why is an internal team not suitable for Forensic Auditing?
An internal team may provide a biased opinion or deny the existence of fraud. However, the management may ignore or be unsuspecting of an employee’s involvement. Considering these complications, we recommend hiring an external team to conduct a forensic audit to get a fair and accurate picture of the state of company affairs.
2) How much time does the NRD team require to complete the Forensic Auditing?
We may prioritize the forensic audit if the assumed loss and fraud significantly impact the company. However, the time required to complete the audit depends upon the business type, diversity of business operations, company size, number of transaction points, data complexity, and other factors.
Identifying Unusual. Detecting Frauds. Implementing Precautions.
That’s how we help to save your business
from Frauds and Mischief!