Question
________ examines and evaluates a firm's or individual's
financial records to derive evidence used in a court of law or legal proceeding.Solution
A forensic audit refers to the examination and evaluation of financial records belonging to a company or individual in order to gather evidence that can be used in a court of law or legal proceedings. It involves a detailed analysis of financial transactions, accounting records, and other relevant documentation to uncover any potential fraud, misconduct, or irregularities. Forensic auditors are trained to apply specialized investigative techniques and methodologies to identify financial discrepancies and provide expert opinions that can be used as evidence in legal cases. This type of audit is often conducted when there are suspicions of fraudulent activities or when legal action is being pursued.
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