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SPECIALIZED INVESTIGATION

Forensic Audit Services

Independent, evidence-based forensic audits to identify financial irregularities, establish facts, and support management, legal counsel, and regulatory requirements.

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₹3.5Cr+

Fraud Detected

50+

Cases Investigated

100%

Confidentiality

15+

Years Experience

Our Core Services

Comprehensive forensic audit solutions tailored to your investigation needs

Fraud Risk Assessment

Identify vulnerable processes, high-risk transactions, and control gaps that may allow fraud or misappropriation.

Investigation & Fact Finding

Trace transactions, examine records, validate supporting documents, and establish a clear chronology of events.

Reporting & Litigation Support

Deliver structured reports with findings, quantified impact, and recommendations usable for legal and compliance actions.

Types of Fraud We Investigate

Common fraud schemes we've successfully uncovered and investigated

Asset Misappropriation

Theft of cash, inventory, or equipment through false invoices or dummy vendors

Financial Misstatement

Revenue inflation, expense suppression, or off-book liabilities

Expense Reimbursement

Duplicate claims, inflated amounts, or personal expenses charged to company

Payroll Fraud

Ghost employees, inflated hours, or unauthorized bonuses

Procurement Fraud

Kickbacks, bid rigging, or favored vendor arrangements

Related Party Transactions

Undisclosed conflicts of interest or non-arm's length deals

Data Theft & IP Breach

Unauthorized access, data exfiltration, or intellectual property theft

Tax & GST Fraud

Input credit manipulation, fake invoices, or circular trading

Real-World Case Examples

Actual investigation scenarios we've handled (details modified for confidentiality)

Asset Misappropriation Manufacturing

Ghost Vendor Scheme - ₹45 Lakhs Recovered

The Problem:

A mid-size manufacturing company noticed consistently high procurement costs despite stable production volumes. Random invoice reviews revealed similar formatting across different vendor names.

Our Investigation:
  • Analyzed 3 years of purchase orders and vendor master files
  • Discovered 12 shell companies with same bank account and address patterns
  • Traced payments to accounts controlled by the procurement manager's family
  • Interviewed warehouse staff who confirmed non-delivery of materials
Outcome:

Quantified fraud at ₹45 lakhs. Criminal complaint filed. Company recovered ₹32 lakhs through legal action and implemented three-way matching controls.

Financial Misstatement Retail Chain

Revenue Inflation Before Investor Due Diligence

The Problem:

PE firm's preliminary diligence flagged unusually high Q4 revenue spike (40% above quarterly average) at a retail chain seeking Series B funding.

Our Investigation:
  • Examined point-of-sale data vs. financial records for all 23 stores
  • Identified ₹1.2 Cr in fake invoices recorded against non-existent sales
  • Found inventory count manipulation to match inflated revenue
  • CFO admitted to pressure from founders to "show growth"
Outcome:

Investor withdrew from deal. Founder team replaced. Restatement filed. New controls on revenue recognition and inventory reconciliation implemented.

Payroll Fraud Construction

Ghost Employees on Payroll - ₹18 Lakhs

The Problem:

Construction firm's HR costs increased 25% year-over-year despite no new projects. Anonymous tip suggested fake workers on payroll.

Our Investigation:
  • Cross-matched payroll records with Aadhaar attendance logs
  • Found 14 "employees" with no attendance or PF contributions
  • Salaries credited to accounts belonging to site supervisor's relatives
  • Digital forensics revealed WhatsApp coordination of fund transfers
Outcome:

Supervisor terminated, ₹18 lakhs quantified, partial recovery through garnishment. Biometric attendance and bank account verification now mandatory.

GST Fraud Trading

Fake Input Tax Credit Network

The Problem:

GST authorities issued show-cause notice for ₹68 lakhs in suspicious ITC claims. Company feared denial and penalty exposure of ₹2+ Cr.

Our Investigation:
  • Verified GSTIN status and physical existence of all vendors
  • Found 5 vendors at non-existent addresses with no tax filings
  • Purchase manager admitted to accepting fake invoices from "broker"
  • Reconstructed genuine vs. fake purchase trail with e-way bills
Outcome:

Voluntary reversal of ₹52 lakhs in fake ITC. Self-reported to GST authorities. Penalty reduced. Implemented vendor verification protocol and segregation of duties.

When Should You Consider a Forensic Audit?

Red flags and trigger events that warrant professional investigation

Whistleblower Complaints

Anonymous or named allegations of fraud, corruption, or financial misconduct requiring immediate investigation.

Unexplained Financial Anomalies

Sudden drops in profit margins, inventory discrepancies, or unexplained cash flow issues.

Pre-Transaction Due Diligence

M&A, investment, or partnership scenarios requiring integrity verification of financial statements.

Regulatory or Tax Notices

Show-cause notices from GST, Income Tax, or other authorities alleging evasion or misstatement.

Employee Termination Disputes

Suspected misconduct by departing employees requiring evidence documentation for legal proceedings.

Internal Control Failures

Repeated audit observations or material weaknesses suggesting systematic fraud risk.

What Is Our Procedure?

Our forensic audit procedure is structured to preserve evidence quality and provide decision-ready outputs.

01

Engagement & Scope Definition

Understand allegations, define objectives, determine period, entities, data sources, and reporting requirements.

02

Evidence Preservation

Secure books, digital records, emails, and supporting documents with chain-of-custody controls.

03

Data Analysis & Transaction Testing

Perform targeted analytics, exception testing, and reconciliation to isolate unusual entries and patterns.

04

Interviews & Corroboration

Conduct management and staff interviews and corroborate statements with documentary evidence.

05

Findings & Quantification

Establish root cause, control failure points, and estimate financial impact with supporting schedules.

06

Final Report & Corrective Plan

Issue a defensible report and practical remediation plan including control redesign and monitoring actions.

Typical Investigation Timeline

What to expect during the forensic audit process

Week 1: Initial Assessment

1 Week

Preliminary interviews, document request list, engagement letter, and investigation plan finalization.

Weeks 2-4: Data Collection & Analysis

2-3 Weeks

Receive and review books, emails, contracts. Run data analytics on transactions. Identify red flags and anomalies.

Weeks 5-6: Field Work & Interviews

1-2 Weeks

On-site visits, physical verification, employee interviews, management Q&A, third-party confirmations.

Week 7: Draft Report Review

1 Week

Internal peer review, draft findings presentation to management, response to management comments.

Week 8: Final Deliverables

1 Week

Final report issuance with exhibits, remediation plan, control recommendations, and exit meeting.

Timeline may vary based on case complexity, availability of documents, and cooperation from involved parties.

Frequently Asked Questions

Common questions about forensic audit engagements

A regular audit focuses on expressing an opinion on financial statement fairness. A forensic audit is investigation-driven — it starts with a specific allegation or suspicion, seeks to establish facts, quantify damages, and preserve evidence for potential legal action. We employ specialized techniques like data analytics, digital forensics, interviewing, and fraud examination that go beyond sampling and substantive testing.

We design our approach to minimize operational impact. Most data analysis happens off-site. On-site visits are scheduled at convenient times. Interviews are conducted discreetly. We work with your IT and legal teams to ensure business continuity. In most cases, investigations can proceed without alerting the broader employee base until necessary.

Fees depend on scope, complexity, data volume, and urgency. Simple expense reimbursement investigations may cost ₹1-3 lakhs. Complex multi-entity fraud cases can range ₹5-15 lakhs or more. We provide a detailed fee estimate after the initial scoping discussion. Most engagements are time-and-materials based with monthly billing and transparent hour tracking.

Yes. Our reports are prepared with litigation in mind — clear chain of custody, documented methodology, supporting exhibits, and professional objectivity. We can serve as expert witnesses if required. However, final admissibility depends on your legal counsel's strategy and the court's rules. We coordinate closely with lawyers to ensure our work product meets evidentiary standards.

Even if fraud is not substantiated, our investigation still provides value. We document what we examined, what we found (or didn't find), and any control weaknesses that created fraud risk. This "clean bill of health" can be valuable for stakeholder assurance, insurance claims, or dismissing baseless allegations. The report confirms the organization acted responsibly by investigating concerns thoroughly.

We sign NDAs, use secure file transfer systems, limit information sharing to "need-to-know" personnel, conduct work in private spaces, and avoid discussing case details in public or over unsecured channels. All working papers are password-protected. We coordinate with your legal team to maintain attorney-client privilege where applicable. Data destruction protocols are followed post-engagement.

Time-Sensitive: Evidence Preservation Is Critical

If you suspect fraud, act immediately. Digital evidence can be deleted, documents destroyed, or witnesses coached. Contact us for an urgent initial consultation to secure evidence and plan next steps.

Need a confidential forensic review?

We can start with an initial scoping discussion and a secure document intake process.

Talk to Our Team