a) Types of Forensic Audit Reports:

Three types of reports are prepared during a forensic audit. These are the Investigative
Report, Compliance Report, and Fraud Examination Report.

 The Investigative Report is used to investigate a specific allegation or incident. It

contains a detailed analysis of the evidence gathered during the investigation and
presents the findings and conclusions.
 A Compliance Report is prepared when a forensic audit is conducted to assess an
organization's compliance with applicable laws, regulations, and internal policies. It
identifies any non-compliance issues and provides recommendations for
improvement.
 The Fraud Examination Report is prepared when the forensic audit focuses on
detecting and investigating fraudulent activities within an organization. It outlines the
methods used to uncover the fraud, presents the evidence gathered, and provides
recommendations to prevent future occurrences.

b) Characteristics of a good report:

A well-written forensic audit report should have the following characteristics:

 Clarity and Conciseness: The report should be easy to understand and well-organized,
straightforwardly presenting complex information.
 Objectivity: The report should be unbiased and based solely on the evidence gathered
during the audit, avoiding personal opinions or judgments.
 Accuracy: The report should be accurate and reliable, presenting only verifiable and
well-documented information, data, and facts.
 Completeness: The report should cover all relevant aspects of the forensic audit,
including the audit scope, methodologies used, findings, and recommendations for
improvement.
 Professionalism: The report should be written in a professional tone, adhering to
ethical guidelines and appropriate standards, with proper grammar, punctuation, and
terminology.

c) Forensic Audit Report Structure:

The structure of a forensic audit report may differ depending on the organization and the type
of audit, but it usually consists of the following sections:
  Executive Summary: A summary of the audit objectives, key findings, and
recommendations.
 Introduction: A description of the purpose and scope of the forensic audit, including
the background information and the specific areas or incidents under investigation.
 Methodology: An explanation of the audit approach, techniques, and procedures used
during the investigation.
 Findings: A presentation of the detailed findings of the forensic audit, including the
evidence gathered, analysis performed, and any irregularities or non-compliance
identified.
 Conclusions: A summary of the main conclusions drawn from the findings and the
implications of the forensic audit.
 Recommendations: Clear and practical suggestions to address the issues identified and
prevent future occurrences. Recommendations should be supported by the findings.
 Appendices: Supporting documents, charts, graphs, or additional information that
supplements the main report.

d) Common reporting mistakes:

 The lack of clarity or organization can make it difficult for readers to understand the
findings and conclusions.
 Failure to provide sufficient evidence or documentation to support the findings can
undermine the credibility of the audit.
 Bias or subjectivity in presenting the information can result in a lack of objectivity,
affecting the accuracy of the audit.
 Inadequate detail or insufficient explanation of the audit procedures and
methodologies used can limit the understanding of the audit.
 Omitting important findings or not addressing all relevant aspects of the forensic audit
can compromise the audit's integrity.