For the common man both the Audits may seem to be similar but there are quite precise differences between these two Audits which are listed below
• Mostly a financial audit is conducted annually or when the company is in need of such audit but a forensic audit is conducted when there is any kind of investigation or when there is any sign of fraudulent activity or unethical behavior that may be illegal.
• A financial audit helps the investors and lenders to know the current financial position as well as the current operations of the company they can use such reports in order to make future investment decisions whereas a forensic audit enables to identify or detect any unethical behavior or fraudulent activities that may be carried out in the company.
• A financial audit can be considered as a routine process that a company must conduct at least once a year but a forensic audit must be conducted only when there is a need for it such as if there is any suspicion about any malpractices within a company. Hence financial audit provides general information about the activities of a company whereas a forensic audit provides specific and accurate information about the departments and other particular activities of the company.
