Forensic investigation is a forensic audit carried out in response to a suspicion of wrong doing, usually to prove or disprove certain assumptions, for example x person is carrying out a fraud or y person was negligent in carrying out that piece of work.

The Objective

The objective of a forensic investigation is to obtain evidence that might be used in legal proceedings to resolve a dispute or prove innocence/guilt in a criminal case such as providing evidence of money laundering. In accounting, the term forensic refers to the use of accounting information for legal purposes, in the resolution of legal disputes or in disputes that are resolved by a court of law. it may be used in both criminal cases (for example fraud cases) and civil cases. Often forensic investigation is usually reactive meaning that they seek to prove or disprove suspicions of wrong doing and provide evidence for legal proceedings. However, investigations can also be proactive or preventative, Techniques of forensic auditing can be used to identify risks of wrong doings and then steps can be taken to improve the situation.