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Question

An examination of a company's financial records to derive evidence which can be used in a court of law or legal proceeding is known as ________

A Statutory Audit Correct Answer Incorrect Answer
B Internal Audit Correct Answer Incorrect Answer
C Forensic Audit Correct Answer Incorrect Answer
D Scientific Audit Correct Answer Incorrect Answer
E Legal Audit Correct Answer Incorrect Answer

Solution

A forensic  audit  is an analysis and review of the financial records of a  company  or person to extract facts, which can be used in a court of law. Forensic Audit is to conduct investigations, in case of embezzlement, financial misconduct, contract non-compliance and other fraud cases. The role of Forensic auditors is to identify the perpetrators of financial theft and frauds including tracing money laundering, identifying illegal/ unethical activities as well as tax evasions.

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