Fraud audit

A fraud audit is a detailed examination of the financial records of a business, with the intent of finding instances of fraud. This procedure is more detailed than a normal audit, since some types of fraud involve such small amounts of money and other assets that they might fall below the standard materiality threshold. The task of the auditor is to gather evidence regarding a fraud, which may also result in acting as an expert witness during subsequent legal proceedings.

A fraud audit is actually a consulting service, rather than a type of audit, since the outcome does not involve giving an opinion on a client's financial statements.

A fraud audit includes a higher proportion of interviews than a normal audit, since the auditors are also searching for clues from employees who might have noted behavior that is indicative of fraud.