Forensic accounting and audit
A defensible figure for what was lost and where the money went, with schedules that auditors, insurers and opposing experts can test.
Transaction testing, fund-flow tracing and loss quantification for recovery, insurance claims and disputes.
Forensic accounting turns books, bank statements and transaction data into an answer: how much was lost, through which transactions and to whom. It is the work that puts a number on a fraud, supports an insurance claim or tests whether reported figures reflect what really happened.
We test full populations rather than samples wherever the data allows. Procure-to-pay, order-to-cash and payroll transactions are analysed for patterns, fund flows are traced across bank accounts and related parties, and the books are reconciled to stock and third-party records.
Every assumption is written down. A loss figure is useful only if the other side, an insurer or a tribunal can follow how it was reached, so our schedules show the source of each number and the method behind it.
You need to know how much was lost, where the money went, or whether the books reflect reality.
Signs we see most often
- 01You need to quantify a loss for recovery, an insurance claim or a dispute.
- 02Reported revenue, receivables or inventory look out of line with the business.
- 03Funds moved to related parties or unfamiliar accounts without a clear purpose.
- 04A lender or investor questions the quality of the numbers.
- 05A resolution professional needs transactions tested before or during insolvency.
Scoped in writing, run by one accountable team.
Every engagement starts with agreed questions, a reporting line and a confidentiality protocol. The steps below are how this service usually runs; we adapt them to your matter.
- 01FrameAgree the period, the transactions in scope and the question the figure must answer.
- 02CollectObtain ledgers, bank statements, ERP extracts and third-party confirmations, recording the source of each.
- 03TestAnalyse full transaction populations for anomalies, duplicates, round-tripping and unusual approvals.
- 04TraceFollow fund flows across bank accounts, group companies and related parties.
- 05QuantifyCompute the loss or misstatement with documented assumptions and alternative scenarios.
- 06ReportPresent the figure, the method and the schedules in a form an expert can defend.
A loss computation and supporting schedules that stand up to auditors, insurers and opposing experts.
- A loss or misstatement computation with documented assumptions
- Fund-flow charts linking accounts, entities and people
- Transaction-testing results with each exception explained
- Reconciliations of books, stock and third-party records
- An expert report for insurers, auditors or a tribunal
The law and frameworks this work is aligned to
- Aligned to the ICAI Forensic Accounting and Investigation Standards
- Companies Act, 2013 s.143(12) on fraud reporting by auditors
- Insolvency and Bankruptcy Code, 2016 ss.43 to 50 and 66 on avoidance transactions and fraudulent trading
- RBI Fraud Risk Management Directions, 2026, where a lender commissions the review
- Bharatiya Sakshya Adhiniyam, 2023 on expert opinion and electronic records
References show the standard the work is built to. They do not imply accreditation or endorsement by the bodies that publish them.
This is a summary of the service. For a deeper understanding of how it would work for your organisation, please reach out to us.
Talk to a BDI partnerWhere this service meets BDI's technology.
The platforms below record, monitor or act on the work this service produces.
Whistle Sentinel
Losses behind a substantiated report quantified for recovery, insurance or disciplinary action.
Pactinex
Vendor billing tested against contracted rates and milestones.
FraudSentinel360
Fund-flow tracing and loss quantification behind a fraud classification.
Questions clients ask before we start.
How is this different from a statutory audit?
A statutory audit gives an opinion on whether financial statements are fairly presented, on a test basis. Forensic accounting answers a specific question, usually about loss, misstatement or misuse of funds, and tests transactions to the depth that question needs.
Can you work with incomplete records?
Yes. Gaps are common in fraud matters. We rebuild what we can from bank statements, counterparties and third-party records, and state clearly where a figure rests on an assumption.
Will the figure survive challenge?
That is how it is built. Each number traces to a source document, each assumption is stated, and alternative scenarios show how the figure moves if an assumption is rejected.