INVESTIGATION IN AUDITING-OBJECTIVES,TYPES.pptx

INVESTIGATION

1. INVESTIGATION OBJECTIVES TYPES

2. Definition of Investigation Definition of Investigation Content : Investigation refers to a systematic process of examining facts, records, and activities to uncover the truth or solve a particular problem. It involves collecting evidence, interviewing witnesses, and analyzing data to make informed decisions. Investigations can be conducted internally or externally depending on the nature of the issue.

3. Objectives of Investigation Uncovering Fraud or Mismanagement : Detecting and preventing fraudulent activities or unethical practices. Ensuring Legal and Regulatory Compliance : Ensuring the company follows laws and regulations, avoiding legal issues. Providing Evidence for Legal Proceedings : Collecting crucial information for potential lawsuits or regulatory actions.

4. Objectives of Investigation Improving Business Operations : Identifying inefficiencies or weaknesses in business operations. Protecting the Interests of Stakeholders : Safeguarding the interests of shareholders, employees, and customers. Maintaining Organizational Integrity : Ensuring that the company operates with transparency and upholds ethical standards.

5. Types of Investigation Internal Investigation : Conducted within the organization by the company’s own team or internal auditors. Focus on internal controls, financial records, and employee behavior. External Investigation : Conducted by external professionals, auditors, or regulatory bodies. External investigations ensure objectivity and compliance with industry standards.

6. Routine Auditing Investigations Purpose : To verify the accuracy and completeness of financial statements. Methods : Detailed examination of transactions, financial records, and internal controls. Objective : Ensure financial statements adhere to applicable accounting standards (e.g., GAAP or IFRS).

7. Forensic Auditing Investigations Purpose : To uncover fraudulent activities, financial crimes, or misappropriation of assets. Methods : Data analysis, interviews, and forensic tools to trace fraudulent transactions. Objective : Gather evidence for potential legal proceedings or regulatory actions.

8. Internal Investigations in Auditing Purpose : Conducted by the company’s internal audit team to examine operations, policies, and compliance. Methods : Reviewing internal controls, conducting risk assessments, and interviewing staff. Objective : Identify inefficiencies, non-compliance with policies, or potential fraud internally before it escalates.

9. Special Investigations in Auditing Purpose : These are investigations outside the routine audit scope, triggered by specific concerns. Methods : Focused procedures on specific areas of concern such as tax issues, conflict of interest, or related party transactions. Objective : Provide in-depth analysis in specific areas, ensuring adherence to regulations and corporate governance principles.