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Compare a forensic audit with a financial audit. Give specific examples of the differences between the two audits.

Compare a forensic audit with a financial audit. Give specific examples of the differences between the two audits.

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  1. Financial audit is what related to verifying the authenticity and correctness of the financial statements and relevant disclosures. It is a check as to whether the financial statements are true and fair.
  2. Forensic audit on other hand is an investigation as to whether there are any illegal financial transactions. It is in addition to the financial audit.
  3. Both the audits are related to examination of financial statements but the intention is different in both the cases.
  4. Financial audit provides confidence to the creditors and other stakeholders of the company.
  5. Forensic audit investigates for any illegal activity.
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