Auditing as commonly known as giving objective assurance on the subject matter which is relied upon by the concerned stakeholders to meet certain predefined objectives.
As can be understood from the definition itself, both types of auditing i.e. Forensics and Internal auditing are two different branches from the same tree, thus, it can be assumed that there could be certain similarities.
Before going into more details, we first have to understand the definitions of Forensic Auditing and Internal Auditing, recognized internationally.
Internal Auditing: As per Institute of Internal Auditors (USA), Internal Auditing is an independent objective assurance and consulting activity to help in achieving organizations’ objectives and improving effectiveness of Risk Management, Controls and Governance Process.
Forensic Auditing: As per Association of Certified Fraud Examiners, Forensic Auditing is a process of resolving allegations of fraud from inception to disposition by using specific skills sets for fraud detection and reporting.
As the definition suggests, the streams of auditing differ in their objectives for which they are being conducted in an organization.
The key differences between the two concepts of auditing can be categorized under OCEALS, detailed note as follows:
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