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Fraud Detection · Digital Forensics · Whistleblower · Litigation Support

Forensic Audit Services — Detect Fraud Before It Destroys Value

Are you seeking forensic audit services for your company? At Enterslice, we provide services covering independent forensic audits and fraud investigations for corporates, banks, PE investors, and regulators. These services help companies detect financial fraud, procurement fraud, conduct digital forensics, handle whistleblower cases, and provide litigation support. Such reports are designed and prepared for use by SEBI, CBI, ED, and Indian courts.

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Court-Admissible Reports
SEBI & RBI Accepted
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 Rated 4.8/5  ·  10,000+ Clients  ·  No Spam
300+ Forensic Engagements
₹5,000 Cr Fraud Detected
100% Confidentiality
SEBI, CBI & Court Accepted
Rated 4.8 / 5
The Forensic Imperative

India Loses ₹1 Lakh Crore Annually to Corporate Fraud- Low Detection Rate Noticed

As per the ACFE (Association of Certified Fraud Examiners), companies across the globe lose 5% of their annual revenue due to fraud. Some of the common frauds of an organization are financial statement manipulation, procurement fraud, diversion of funds, and misuse of related-party transactions.

A major reason so much fraud remains undetected is that statutory audits are mainly designed to check whether financial statements are “true and fair,” not to actively investigate fraud or trace hidden irregularities.

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5%
of annual revenues lost to fraud in average organization (ACFE global estimate)
14 months
median duration before fraud is detected, time value of early investigation
300+
forensic engagements completed across banking, corporate, and PE sectors
₹5K Cr
total fraud value detected, quantified, and reported across all engagements

What is a Forensic Audit and When is it Required?

A forensic audit of a company, unlike a regular due diligence, is a detailed investigation of a company’s financial records to identify and detect potential fraud, misuse of funds, or financial wrongdoing before it becomes too late, affecting the company’s business operations. It mainly focuses on finding evidence of fraud and preparing reports that can be used in legal or regulatory cases against a company.

In India, forensic audit is conducted whenever a company is suspicious of fraud or detected during an investigation by banks or insolvency authorities like NCLT under IBC, or under various circumstances like when SEBI India orders a probe, or when a whistleblower complaint is filed under the Companies Act, or when investors (like in mergers or private equity deals) notice suspicious transactions during due diligence.

Pre-IPO Forensic Review: Companies, before going public, often conduct a pre-IPO forensic review in order to determine and detect any past financial irregularities or issues that regulators like the Securities and Exchange Board of India (SEBI) or investors may question. Unlike a traditional due diligence, this review specifically checks on the related party transactions, fund division, and the accuracy of financial statements. Therefore, addressing these issues early, before filing the DRHP, helps avoid potential regulatory obligations and delays later.

Common Corporate Fraud Types in India

  • Financial Statement Fraud: It refers to Inflating revenue or hiding liabilities of a company.
  • Asset Misappropriation: It covers theft via cash, fake expenses, or payroll fraud.
  • Fund Diversion: Routing funds through shell or related-party deals of a company.
  • Procurement Fraud: A fraud that covers Kickbacks, fake orders, and inflated invoices.
  • Cyber Fraud: Phishing, email scams (BEC), hacking, data theft.
Forensic Engagement Scope
Financial Statement Fraud4–8 Weeks
Procurement Fraud3–6 Weeks
Digital Forensics2–4 Weeks
Whistleblower Investigation4–8 Weeks
Bank NPA Fraud Investigation6–12 Weeks
Pre-IPO Forensic Review4–6 Weeks
Confidentiality100% Guaranteed
Report Accepted BySEBI, CBI, ED, Courts
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Our Services

Our Forensic Audit Services

We provide end-to-end forensic audit services covering fraud investigation across financial, digital, procurement and regulatory areas.

Financial Statement Forensics

A thorough financial statement detection to detect manipulation, misrepresentation, and creative accounting. We also identify any company’s fictitious revenues, liabilities, or inventory manipulation.

  • Revenue recognition analysis
  • Receivables and inventory testing
  • Related party transaction review
  • Earnings manipulation detection

Digital Forensics & E-Discovery

We assist in recovery and forensic analysis of digital evidence, as mentioned below. Such that the evidence is collected using internationally recognized tools with proper chain-of-custody procedures admissible in Indian courts.

  • Email and communication forensics
  • Deleted file recovery and analysis
  • System and network log analysis
  • Forensic imaging and chain of custody

Whistleblower Investigation

We also conduct investigations into whistleblower complaints under the Companies Act Section 177 and SEBI LODR Regulation 22. Some of them are given below:

  • Anonymous complaint intake process
  • Independent investigator appointment
  • Interview and evidence collection
  • Board reportable findings summary

Procurement & Vendor Fraud

We also conduct an investigation of fraud detection in the procurement process including fictitious vendors, kickbacks, bid rigging, and unauthorized purchases. For these, data analytics is used to identify anomalies, patterns, and suspicious vendor relationships.

  • Vendor master file analysis
  • Payment and invoice testing
  • Bid comparison and collusion testing
  • Employee vendor conflict of interest

Bank NPA & Borrower Fraud

Our services also cover forensic investigations of NPA borrowers under RBI fraud classification guidelines and SEBI directions. The services include the following.

  • End-use of funds analysis
  • Asset diversion investigation
  • Shell company and round-trip tracing
  • RBI fraud classification report

Litigation Support & Expert Witness

Our financial experts always support both civil and criminal litigation, as mentioned below. While Reports are structured to meet the evidentiary standards of Indian courts and tribunals.

  • Damages quantification report
  • Asset tracing across entities
  • Expert witness affidavit preparation
  • Cross-examination support
Our Process

How do we conduct a Forensic Investigation?

A structured, confidential, and legally defensible methodology.

01

Engagement & Scoping

Firstly, we define the companies’ scope, objectives, and key hypotheses along with data needs and confidentiality protocols.

02

Evidence Collection

Secondly, we help to collect evidence using forensically sound methods while maintaining the chain of custody. Some of the evidence is financial, digital and operational data.

03

Data Analysis & Investigation

We also assist in analyzing across the company’s functions to identify anomalies and red flags, supported by forensic interviews.

04

Fraud Tracing & Quantification

In this stage, we trace end-to-end suspicious transactions, identify beneficiaries, map fund flows and also quantify the financial impact of the company.

05

Reporting

Before finalization, we prepare a detailed, evidence-backed forensic report covering findings, methodology, and recommendations and a review of the company.

Final Output

Lastly, a final output covering a forensic report with findings, evidence, and actionable recommendations for regulators and legal proceedings will be delivered.

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Why It Matters

What are the Benefits of Independent Forensic Investigation?

An independent forensic investigation helps protect leadership, recover lost assets, strengthen legal action, and improve long-term governance and trust.

Board & Director Protection

It shows that the board has acted responsibly and diligently in detecting fraud. This demonstrates a fulfilment of fiduciary duties and safeguards directors from potential personal liabilities under section 166 of the Companies Act.

Asset Recovery

It also helps companies to detect and identify diverted funds and assets. These findings are also supported by legal actions like freezing bank accounts, securing attachment orders, and filing recovery suits against those responsible.

Regulatory Credibility

A company equipped with a forensic audit signals seriousness and transparency to regulators like SEBI and RBI. It becomes more favourable than an investigation initiated under regulatory pressure.

Legal Prosecution Support

A forensic report provides important evidence required for initiating legal proceedings like FIRs, CBI investigations, and civil recovery cases. They help companies to establish the extent of fraud, quantify losses, and trace the flow of funds, strengthening the case.

Process Improvement

Not only does it help to detect fraud, but forensic audits also highlight internal control gaps that allowed the issue to occur, and improve governance systems such as approval workflows, segregation of duties, and compliance checks to prevent future incidents.

Investor & Lender Confidence

It also reassures investors, PE funds, and lenders that the management of the company is handling the issues transparently. This overall helps the company to build trust and protect long-term relationships with institutional investors.

FAQ

Frequently Asked Questions on Forensic Audit Services

Typically, a forensic audit in an Indian company gets triggered when red flags like whistleblower complaints under the Vigil Mechanism, suspicious transactions identified by internal or statutory auditors, or investigation directions from regulators like SEBI and RBI.
It may also arise when a bank classifies the account as fraud or when investors detect issues during investigations. Therefore, an early detection always leads to better outcomes than a delayed regulatory intervention.

No, a forensic audit is not the same as a statutory audit, such that the former is specifically designed to detect and investigate fraud or financial misconduct by using specialized techniques like data analytics and data forensics science. Its findings are evidence based useful for legal proceedings of a company. The latter is conducted under the Companies Act to verify whether the financial statements are true and fair in accordance with the accounting standards.

Yes, a forensic audit report can be kept confidential to a certain extent under the guidance and direction of a legal counsel. However, confidentiality is not absolute, such that certain disclosures are mandatory, like reporting findings to the Audit Committee or board, notifying regulators like the Reserve Bank of India in cases of fraud classification, and producing the report in court if legal proceedings are initiated.
At the same time, a company with a proper structuring of an engagement at the outset helps to increase confidentiality within the Indian legal framework.

A digital forensic is covered with a systematic collection, preservation, and analysis of electronic evidence like emails, chat messages, deleted files, metadata, and system logs. This process is important for uncovering evidence since most of the corporate fraud leaves a digital trail. Some of the scientifically sound methods include creating forensic images of devices, verifying data integrity through hash values, and maintaining a strict chain of custody.

After the forensic report is submitted, the company will start taking action depending on the findings and its objective. This action includes review by an Audit Committee and board, disciplinary action or termination of employees involved, and initiation of legal steps such as filing an FIR or referring the matters to the CBI for further investigations. Moreover, a company may pursue a civil recovery, freeze diverted funds, and make necessary regulatory disclosures to authorities such as SEBI or RBI, along with stronger internal control implementations.

A company going for an IPO must conduct a pre-IPO forensic review to avoid unnecessary delays and notices from the regulatory board. Such that SEBI does scrutinize a company before issuing an IPO, they closely conduct an assessment covering financial history, including related party transactions, fund flows, and financial statement accuracy. Therefore, it is recommended to conduct a forensic review 6 to 12 months in advance, so the company can identify and address issues early and resolve discrepancies before it is too late.
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Why Enterslice

Why Trust Enterslice for Forensic Audit?

Independent, court-ready investigations by certified forensic professionals with deep Indian regulatory expertise for forensic audit.

Certified Forensic Professionals

Our forensic team includes Certified Fraud Examiners (CFEs), Certified Forensic Accounting Professionals (CFAPs), and digital forensics specialists.

SEBI, CBI & Court-Accepted Reports

Our forensic reports are structured to meet the evidentiary and admissibility standards required by SEBI, the CBI, the Enforcement Directorate, and Indian courts, etc.

Absolute Confidentiality

Forensic investigations demand the highest levels of confidentiality. Our investigation protocols include need-to-know information access, secure communication channels, anonymous whistleblower portals, etc.

Advanced Data Analytics

We use advanced data analytics tools like ACL Analytics, IDEA, and Python, to analyze millions of transactions rapidly, identify statistical anomalies, and map complex fund flows that would be invisible to manual investigation.

End-to-End Support

From initial investigation through regulatory disclosure, FIR filing, civil recovery, and control remediation, we provide end-to-end support, working alongside your legal counsel at every stage of the post-investigation process.

Rated 4.8 / 5

300+ forensic engagements completed across listed companies, NBFCs, banks, PE-backed companies, and public sector undertakings. Rated 4.8/5 by clients for professionalism, speed, and report quality.

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