Responding to Requests for a “Forensic audit”: A Practitioner Q&A on Scope and Standards

When clients request a “forensic audit,” they may be referring to services that differ significantly from a financial statement audit. This FLS Committee Q&A is designed to assist forensic practitioners in responding to such requests by promoting clearer and more accurate descriptions of forensic services and helping practitioners establish an understanding with clients regarding the nature, scope, and limitations of services.

The resource explains why the term “forensic audit” may create confusion, outlines key distinctions between financial statement audits and forensic engagements, and provides practical considerations for client communications, engagement documentation, and engagement letter language.

The chart below summarizes certain distinctions between a financial statement audit and a forensic engagement discussed throughout the resource.

For a more detailed discussion of these concepts and additional answers to common questions, download the complete Q&A resource below.