What is a key characteristic of forensic auditing?

Forensic auditing is distinguished by its combination of auditing practices with investigative techniques. This approach is essential in examining financial discrepancies, fraud, and other illicit activities within an organization. Forensic auditors not only assess financial records for accuracy and compliance but also employ various investigative methods to uncover underlying issues, which can include interviewing individuals, analyzing transactions in detail, and utilizing technology to detect anomalies.

This integration of auditing and investigation enables forensic auditors to produce findings that are often used in legal contexts, such as court proceedings or in support of litigation. The ability to merge these two fields is what makes forensic auditing particularly unique and highly specialized compared to traditional auditing practices.