Forensic Audit: A Case of Automotive Company, Legal and Accounting Aspect

Abstract

Objective: The purpose of the research is to describe the process and the results obtained in the application of forensic auditing to the administrative accounting management of an automotive company, analyzing the possible risks that affect the sustainability of the organization, as well as the role of the auditor in the assurance of financial information. Theoretical Framework: The purpose of a forensic audit is to validate any potential risk of fraud within an organization, by corroborating findings from an internal audit and starting with a presumption of fraud. It is essential to detect all types of fraud in a timely manner to ensure business continuity. Methodology: Methodology: The study was conducted using a mixed research design, involving both descriptive and analytical approaches, and incorporating qualitative and quantitative variables. It aimed to identify the essential elements required for the development of the case study route, while following the established procedures of the International Standards on Auditing, as well as employing forensic auditing techniques validated by experts. The study was focused on detecting corporate fraud, highlighting areas of interest with respect to the potential risks of fraud, based on the results of internal control measures. Results: The forensic audit revealed that the automotive company engaged in fraudulent activity and the extent of responsibility in its execution. Conclusions: Forensic auditing is a vital tool for companies to detect corporate fraud and minimize financial risks.