Forensic audits - procedures

In this lesson

1. 0:00 Planning forensic audit engagements
2. 0:51 Selecting appropriate audit procedures
3. 2:30 Insurance claim investigations
4. 4:56 Fraud investigation techniques
5. 6:24 Using data analytics to detect fraud
6. 8:00 Sonic Company theft case study

About this lesson

This video walks you through the planning phase, the range of audit techniques to deploy (from analytical procedures and interviews to data analytics and detailed transaction testing), and how to apply these procedures in real scenarios like theft claims. By understanding how to match procedures to the specific issue at hand, you'll be better equipped to gather robust evidence and quantify losses accurately in your own forensic audit work. The session covers the critical first steps: understanding the nature of the engagement, confirming what output is required, identifying key documentation and personnel access, and determining your firm's role (including whether expert witness status applies). You'll see how procedures differ depending on the claim type—theft of goods, payroll fraud, false employees, or lost profits—and why a bespoke approach is essential. The video then demonstrates practical application through a worked example involving a warehouse theft and insurance claim, showing you how to use CCTV evidence, inventory reconciliation, purchase invoice verification, and police liaison to corroborate and quantify the loss. Throughout, the focus is on precision and evidence gathering. Rather than generic audit techniques, you'll learn to select specific procedures—such as using data analytics to match supplier bank details to employee accounts, or identifying employees with no annual leave as a fraud indicator. This targeted approach ensures your forensic work is both thorough and directly relevant to the issue being investigated, preparing you well for the practical demands of forensic audit engagements in your ACCA studies and professional practice.

Duration: 11m