What is the primary purpose of forensic auditing?

The primary purpose of forensic auditing is to combine traditional auditing practices with investigative techniques. This approach is specifically designed to detect and investigate financial misconduct, fraud, or any illegal activity within an organization. Forensic auditors utilize specialized skills and methodologies to analyze financial records and transactions thoroughly, often employing techniques that go beyond standard auditing to uncover irregularities or evidence of wrongdoing.

In essence, forensic auditing seeks not only to evaluate the integrity of financial information but also to understand the context and circumstances surrounding any discrepancies or suspicious activities. The findings of a forensic audit can lead to legal action, and the auditors may even testify in court if necessary. This unique blend of audit and investigative skills is what distinguishes forensic auditing from other types of audits, emphasizing its role in upholding accountability and transparency in financial practices.