Page 351 - CA Final PARAM Digital Book.

QNO Forensic Audit Steps (Types of Analysis) Old Course-- (M19E)
630.100 TITANIUM CNO – FA.060
You have been appointed as a forensic accountant in M/s Secure Ltd .to carryout various analysis as a
part of your assignment to arrive at a % particular result. Specify the various analysis which might have
to be carried out by you to arrive at your result.
➢ Perform the analysis
The actual analysis performed will be dependent upon the nature of the assignment and may
involve:
summarizing a large number of transactions;
calculating economic damages;
performing present value calculations utilizing appropriate discount rates
performing a regression or sensitivity analysis;
utilizing a computerized application such as a spread sheet, data base or computer
model;
utilizing charts and graphics to explain the analysis.
performing a tracing of assets;

Areas of Information (Content) of Forensic Audit Old Course-- (M21E)
QNO Report
631.500
TITANIUM CNO – FA.080
M/s GSB Limited is into the business of construction for the past 25 years. Management of the Company
came to know that building material sent to construction sites are of substandard quality whereas the
payment released by the accounts department of the Company are on the higher sides. Forensic Auditor

was asked to carry out detailed investigation. Forensic auditor completed his investigation and now
preparing his report. What are the broad areas of information that needs to be incorporated in the
report of forensic auditor?
Answer Broad areas of information to be incorporated in the report of Forensic auditor -
Issuing an audit report is the final step of a fraud audit. Auditors will include information detailing
the fraudulent activity, if any has been found. The client will expect a report containing the findings
of the investigation, including a summary of evidence, a conclusion as to the amount of loss suffered
as a result of the fraud and to identify those involved in fraud.

The report may include sections on the nature of the assignment, scope of the investigation,
approach utilized, limitations of scope and findings and/or opinions. The report will include schedules
and graphics necessary to properly support and explain the findings.

The report will also discuss how the fraudster set up the fraud scheme, and which controls, if any,
were circumvented. It is also likely that the investigative team will recommend improvements to
controls within the organization to prevent any similar frauds occurring in the future.

The forensic auditor should have active listening skills which will enable him to summarize the facts
in the report. It should be kept in mind that the report should be based on the facts assimilated
during the process and not on the opinion of the person writing the report.

New Course – (SM23)
QNO Dealing with Claims involving PLI policy
631.600 TITANIUM CNO -- Unique

X Limited engaged in manufacturing of floor coverings has taken a Product Liability Insurance policy (PLI).
Such a policy covers risk of liabilities for damages for bodily injury resulting from sale and distribution of
floor coverings by vendors of X Limited’s products. The policy is also subject to “claim series” clause. A
Claims Series event is a series of two or more claims arising from one specific common cause which are
attributable to the same fault in design or manufacture of products or to the supply of the same products
showing the same defect. A claim series event is deemed to be one claim under the terms & conditions of
PLI policy.

www.auditguru.in PARAM 17.24 | P a g e