Knowledge Centre

Uncover the truth, protect your assets, and prevent fraud from destroying your business.

Forensic Accounting & Fraud Investigations 

1. What You Need to Know  

Forensic accounting is the use of accounting skills to investigate fraud and financial misconduct. 
It combines financial analysis, investigative techniques, and legal awareness to uncover irregularities. CBAs can help businesses detect theft, misappropriation, or manipulation, and work with lawyers or law enforcement where needed.

2. Why It Matters to You

Fraud can cripple a business — forensic accounting helps you fight back. 
Identifies financial losses caused by fraud or theft. 
Provides evidence for legal proceedings. 
Strengthens internal controls to prevent repeat incidents. 
Restores credibility with stakeholders. 

3. Frameworks, Standards, or References 

Fraud investigations follow structured frameworks and compliance rules. 

  • Frameworks to use: Fraud Triangle (motivation, opportunity, rationalisation), Investigative procedures, Risk-based forensic reviews. 

  • Standards & compliance: Companies Act (director responsibilities), King IV (governance & risk management), International Standards on Related Services (where applicable). 

  • References: CIBA practice guides on fraud detection and investigations. 

  • What your accountant will actually do: 

  • Perform transaction testing to identify anomalies. 

  • Trace misappropriated funds. 

  • Interview staff and gather supporting evidence. 

  • Prepare forensic reports for management, auditors, or legal teams.  

4. How to Apply

Steps to engage your accountant in a fraud investigation: 

  1. Contact your accountant if you suspect fraud. 

  2. Provide access to records and systems for review. 

  3. Allow independent testing and investigation. 

  4. Receive a forensic report outlining findings. 

  5. Use the report for internal action or legal proceedings. 

5. Common Mistakes to Avoid 

Avoid these missteps when dealing with suspected fraud: 

  • Delaying investigation → Fraud losses grow the longer you wait. 

  • Trying to handle it internally → Bring in an independent expert for credibility. 

  • Not preserving evidence → Keep records intact for investigation. 

  • Focusing only on punishment → Also fix the controls that allowed it to happen.