What is the difference between a financial audit and a forensic audit?

What is the difference between a financial audit and a forensic audit Introduction: The Importance of Audits in Finance Hello everyone, and welcome to today's video. In the realm of finance, audits serve as a critical tool for ensuring accuracy, reliability, and compliance. They provide an independent assessment of financial records, offering stakeholders and the public a level of confidence in the reported information. However, not all audits are created equal. Today, we'll be exploring the differences between two prominent types of audits: financial audits and forensic audits. Financial Audits: The Pillars of Transparency Financial audits are perhaps the most common type of audit. They are primarily concerned with assessing the financial statements of an organization, such as the balance sheet, income statement, and cash flow statement. The objective of a financial audit is to determine whether these statements present a true and fair view of the company's financial position. This is achieved through a systematic examination of the records, transactions, and internal controls. The end result is an auditor's opinion, which can be unqualified, qualified, or adverse, depending on the findings. Forensic Audits: Uncovering the Hidden Truths