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CS Professional · Internal and Forensic Audit · Basic Concepts of Forensic Audit

Which statement correctly compares the reporting of a forensic audit with that of a statutory audit?

A forensic report presents findings, supporting evidence and conclusions on the specific matter investigated, rather than a true and fair opinion on the financial statements. A statutory audit report gives that standard opinion, so the two differ in purpose, content and audience.

  1. ABoth result in a standard-format opinion on true and fair view
  2. BA forensic report presents findings, evidence and conclusions on the specific matter investigated, without a true and fair opinion on financial statementsCorrect
  3. CA forensic report is always made public to shareholders
  4. DA forensic report is prepared only by the statutory auditor of the company

Explanation

A statutory audit ends in an opinion on the financial statements. A forensic report sets out facts, evidence and findings for the specific engagement, typically for the client or authorities, and is not a general opinion nor automatically public.

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