Investigation Audit Solutions

The Investigation Audit is the act or process of making enquiry into, reviewing, and analyzing any or all systems under the top management of a company or institution, in order to find out the real facts, or the possibilities of some desirable or undesirable occurrences, for certain specified purposes. These investigation audits are conducted for a variety of objectives. Our organization provides expeditious, scrupulous, and responsible investigation audits for — the audit of entire system, including the internal auditing; fraud detection and prevention; and for certain special or specific purposes. The investigation audits are of great utility for making any one or the whole system of a company or institution, more productive, efficient, profitable, and totally secured from any anomalies, frauds, or any legal litigations. These investigation audits are also utilized for certain business advantages or initiatives. At BMS Our prompt and reasonably charged services for investigation audit cover these all tasks and services.

Investigative auditors gather evidence regarding fraudulent or abusive activity affecting the business. Their audits are designed to detect and deter the misappropriation of assets and to reduce future fraud risks. Employees at BMS who conduct investigative audits have advanced degrees in accounting and audit.

The IT audit that BMS can do it aims to evaluate the following:

Meaning of Investigation.-It is the analysis and examination of accounts of an organization for specific purposes. There view and the examination may involve both financial and non financial information.
In most cases, investigations are commissioned to gain an insight into the affairs of an organization to take some business decisions.

Investigation involves inquiry into facts behind the books and accounts, into the technical, financial and the economic position of the business or organisation.
Investigation is an examination of books and records preliminary of financing or for any specified purpose, sometimes differing in scope from the ordinary audit.

Investigation implies an examination of and record for some special purpose.
Audit and Investigation differs in many ways such as:

  • Object in view
    Audit is conducted to ascertain whether the financial statements show a true and fair view whereas Investigation is conducted with a particular object in view, viz to know financial position, earning capacity, prove fraud, invest capital, etc.
  • Period covered
    Audit is conducted on annual basis whereas Investigation may be conducted for several years at a time, say three years.
  • Parties for whom conducted
    Audit is conducted on behalf of shareholders (or proprietor, or partners) whereas Investigation is usually conducted on behalf of outsiders like prospective buyers, investors, lenders, etc.
  • Documents
    Audit is not carried out of audited financial statements whereas Investigation may be conducted even though the accounts have been audited.
  • Extent of work
    Audit is normally conducted on test verification basis whereas Investigation is a thorough examination of books of accounts.
  • Report
    Audit report is addressed to shareholders (or proprietors or partners) whereas Investigation report is addressed to the party on whose instruction investigation was conducted.
  • Adjustment in net profit
    In case of audit net profit disclosed by audited accounts is final without further adjustments. In case of investigation in order to determine real earnings certain adjustments are always essential.
  • Person performing work
    Audit is to be conducted by a chartered accountant.Investigation may be undertaken even by a non-chartered accountant.

Nature of Investigation

Investigation is an enquiry into the financial statements of a number of past years with a view to know the real financial position or earning capacity. It is in fact a kind of special audit with predetermined scope depending upon the purpose to be achieved. Investigation is neither accounting nor auditing. Investigation is carried out not in substitution of audit, but in addition to audit. The investigating auditor may even have to investigate the audited accounts. BMS can fulfil all the objectives for an investigation audit as the team is made up of professional auditors who can conduct the investigation audit as per the predetermined scope.

Scope of investigation

No general principle can be laid down with regard to the scope of every type of investigation. Scope of investigation, in each case, would be limited to the period or area to be covered by the investigator.
An investigation on behalf of a person intending to purchase running business of a sole trader will be restricted to the determination of value of assets, liabilities, reserves, existing potential and future prospects. An investigation to settle suspected irregularities in cash or stock would normally cover a period from three to six months.