Forensic Audit Checklist 2025: 25 Must-Ask Questions for Every Auditor
Introduction to a Forensic Audit Checklist 2025
In an era of rising financial misconduct and tightening regulatory scrutiny, forensic audits have become a critical tool for fraud detection and risk management. Whether you’re a CA aspirant, a practicing auditor, or part of an internal compliance team, understanding what to ask during a forensic audit can make all the difference.
This comprehensive checklist is tailored for the Indian regulatory and business environment in 2025, ensuring you stay ahead in your audit engagements.
What Is a Forensic Audit?
Purpose and Scope in the Indian Corporate Context
A forensic audit goes beyond traditional compliance checks. Its core aim is to uncover fraud, misconduct, or financial irregularities, often with legal implications. In India, forensic audits are frequently used during insolvency proceedings, shareholder disputes, whistleblower complaints, or investigations triggered by regulatory authorities like SEBI, SFIO, and CBI.
The Ultimate 25-Point Forensic Audit Checklist
Here’s a grouped checklist every Indian auditor should use:
Fraud Risk Assessment
What are the known fraud risks in the client’s industry?
Have any whistleblower complaints been filed in the last 24 months?
Are there unexplained variances between forecasts and actuals?
What is management’s attitude toward internal control and risk?
Are there frequent overrides of standard operating procedures?
Internal Controls Evaluation
Are financial approval limits being consistently followed?
Is there segregation of duties in key financial functions?
Have any internal control deficiencies been flagged earlier?
Are reconciliation processes timely and accurate?
Are high-risk transactions subject to enhanced scrutiny?
Financial Anomaly Detection
Are there unexplained or sudden changes in vendor/customer accounts?
Are there duplicate or round-number transactions?
Are there any dormant accounts that suddenly became active?
Do transactions reflect proper supporting documentation?
Are journal entries tested for backdating or manipulation?
Interview & Document Review Questions
What inconsistencies emerge between documents and verbal statements?
Are employee emails or messages indicative of misconduct?
Have any internal reports been withheld or altered?
Are there unusual or confidential transactions involving senior staff?
Are exit interviews conducted for employees in key roles?
Digital Evidence & IT Systems Audit
Are user access logs consistent with employee roles?
Has any data been recently deleted or altered?
Are there traces of file tampering or unauthorized downloads?
What are the vulnerabilities in the ERP or accounting software?
Are audit trails being routinely reviewed?
Conclusion: Staying Ahead as a Forensic Auditor in India
The future of auditing is forensic. With rising regulatory expectations and complex fraud mechanisms, every auditor needs to think like an investigator. Equip yourself with the right questions, tools, and mindset to navigate audits in 2025 and beyond.
Forensic audits are not just about compliance—they’re about protecting trust in financial systems. Whether you’re studying for your CA exams or leading an engagement, mastering this checklist is a powerful step forward.