Forensic Auditing
Forensic Auditing Market by Investigation Type (Accounting Malpractice & Securities Investigations, Corruption & Bribery Investigation, Cross Border Investigations), End-use Industry (Financial Services, Healthcare, Manufacturing) - Global Forecast 2024-2030
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[186 Pages Report] The Forensic Auditing Market size was estimated at USD 18.70 billion in 2023 and expected to reach USD 20.11 billion in 2024, at a CAGR 8.13% to reach USD 32.33 billion by 2030.

Forensic auditing focuses on gathering evidence and analyzing financial records to detect fraud, conflicts of interest, embezzlement, and other illegal activities or discrepancies. It involves using investigative techniques such as interviews, document reviews, and tracing transactions to identify potential issues with the accuracy and reliability of an organization's financial statements. The rising incidences of cybercrimes and frauds in financial institutions are accelerating the adoption of forensic auditing services to uncover criminal behavior such as embezzlement. However, the high cost and ethical issues associated with forensic auditing may adversely impact the use of forensic auditing services. Moreover, the integration of accounting, auditing, and investigative skills with innovative technologies is expected to encourage the adoption of forensic auditing services by the end-use sectors worldwide.

Regional Insights

The forensic auditing market is evolving in the Americas owing to the presence of well-established banks, technology companies, and healthcare organizations and the growing need to mitigate financial fraud. The growing need to comply with the standards implemented by the regional government and the presence of imminent forensic providers are proliferating the growth of the forensic services market in the APAC region. The vast presence of oil & gas, manufacturing, and healthcare sectors in the EMEA region is expanding the use of forensic auditing services. Additionally, the adoption of innovative digital solutions by forensic auditing service providers is expected to assist the end-use sectors in generating evidence-based data and mitigate fraud.

Forensic Auditing Market
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Market Dynamics

The market dynamics represent an ever-changing landscape of the Forensic Auditing Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

  • Market Drivers
    • Significant growth in financial fraud and claim cases
    • Growing adoption in banks and financial services worldwide to mitigate fraud
    • Governmental rules and regulations associated with forensic auditing services
  • Market Restraints
    • High cost of forensic auditing services
  • Market Opportunities
    • Emergence of social media analytics for fraud detection
    • Growing investments for incorporation of forensic auditing across large enterprises
  • Market Challenges
    • Ethical issues and time-consuming auditing procedures
Market Segmentation Analysis
  • Investing Type: Growing usage of cross-border investigations to identify any potential criminal activity

    Accounting malpractice & securities investigations involve uncovering and assessing fraud, misstatements, or misconduct related to account books and financial statements. These investigations commonly focus on fraud, hidden assets, inflated profits, employee embezzlement, bribery/kickbacks, insider trading, accounting irregularities, money laundering, or other white-collar crimes. Corruption & bribery investigations are conducted to identify any possible illegal activities by individuals or corporations in exchange for some form of personal benefit. These investigations involve analyzing documents, collecting evidence from witnesses, and tracing funds flows to determine who is behind such activities. Cross-border investigations are designed to identify any potential criminal activity that may have taken place across international borders. Investigators need to evaluate the evidence against various regulatory frameworks, including anti-money laundering (AML) controls and sanctions compliance. Event & data analytics are used to gather information to detect suspicious activity or uncover potentially fraudulent behavior. Regulatory investigations aim to identify violations of established standards by examining a company’s financial records or internal policies or procedures.

  • End-User: Growing potential of forensic auditing across the healthcare industry to ensure accuracy in patient billing processes

    Forensic auditing helps to ensure that the financial statements and reports of companies in this sector reflect transparency of their assets, liabilities, and results of operations. Auditors can help identify potentially misleading or erroneous information on financial statements and detect fraud and compliance issues. In the healthcare industry, auditing services ensure accuracy in patient billing processes and medical records maintenance and identify areas for cost savings. Auditors can determine if any misbilling or overcharging is occurring and review existing contracts with vendors and suppliers for potential discrepancies. Manufacturing companies employ forensic auditing services to ensure quality control throughout production. Mining companies use forensic audit services to evaluate mineral reserves estimates, assess exploration costs, review environmental protection practices, verify royalty payment compliance, identify operational errors, and evaluate retirement benefit plans. Oil & gas companies use auditing services for various purposes, including confirming oil & gas reserves estimates, analyzing pricing structures for sales contracts between buyers & sellers, and validating the accuracy & integrity of employee records related to labor relations & safety regulations.

Market Disruption Analysis

The market disruption analysis delves into the core elements associated with market-influencing changes, including breakthrough technological advancements that introduce novel features, integration capabilities, regulatory shifts that could drive or restrain market growth, and the emergence of innovative market players challenging traditional paradigms. This analysis facilitates a competitive advantage by preparing players in the Forensic Auditing Market to pre-emptively adapt to these market-influencing changes, enhances risk management by early identification of threats, informs calculated investment decisions, and drives innovation toward areas with the highest demand in the Forensic Auditing Market.

Porter’s Five Forces Analysis

The porter's five forces analysis offers a simple and powerful tool for understanding, identifying, and analyzing the position, situation, and power of the businesses in the Forensic Auditing Market. This model is helpful for companies to understand the strength of their current competitive position and the position they are considering repositioning into. With a clear understanding of where power lies, businesses can take advantage of a situation of strength, improve weaknesses, and avoid taking wrong steps. The tool identifies whether new products, services, or companies have the potential to be profitable. In addition, it can be very informative when used to understand the balance of power in exceptional use cases.

Value Chain & Critical Path Analysis

The value chain of the Forensic Auditing Market encompasses all intermediate value addition activities, including raw materials used, product inception, and final delivery, aiding in identifying competitive advantages and improvement areas. Critical path analysis of the <> market identifies task sequences crucial for timely project completion, aiding resource allocation and bottleneck identification. Value chain and critical path analysis methods optimize efficiency, improve quality, enhance competitiveness, and increase profitability. Value chain analysis targets production inefficiencies, and critical path analysis ensures project timeliness. These analyses facilitate businesses in making informed decisions, responding to market demands swiftly, and achieving sustainable growth by optimizing operations and maximizing resource utilization.

Pricing Analysis

The pricing analysis comprehensively evaluates how a product or service is priced within the Forensic Auditing Market. This evaluation encompasses various factors that impact the price of a product, including production costs, competition, demand, customer value perception, and changing margins. An essential aspect of this analysis is understanding price elasticity, which measures how sensitive the market for a product is to its price change. It provides insight into competitive pricing strategies, enabling businesses to position their products advantageously in the Forensic Auditing Market.

Technology Analysis

The technology analysis involves evaluating the current and emerging technologies relevant to a specific industry or market. This analysis includes breakthrough trends across the value chain that directly define the future course of long-term profitability and overall advancement in the Forensic Auditing Market.

Patent Analysis

The patent analysis involves evaluating patent filing trends, assessing patent ownership, analyzing the legal status and compliance, and collecting competitive intelligence from patents within the Forensic Auditing Market and its parent industry. Analyzing the ownership of patents, assessing their legal status, and interpreting the patents to gather insights into competitors' technology strategies assist businesses in strategizing and optimizing product positioning and investment decisions.

Trade Analysis

The trade analysis of the Forensic Auditing Market explores the complex interplay of import and export activities, emphasizing the critical role played by key trading nations. This analysis identifies geographical discrepancies in trade flows, offering a deep insight into regional disparities to identify geographic areas suitable for market expansion. A detailed analysis of the regulatory landscape focuses on tariffs, taxes, and customs procedures that significantly determine international trade flows. This analysis is crucial for understanding the overarching legal framework that businesses must navigate.

Regulatory Framework Analysis

The regulatory framework analysis for the Forensic Auditing Market is essential for ensuring legal compliance, managing risks, shaping business strategies, fostering innovation, protecting consumers, accessing markets, maintaining reputation, and managing stakeholder relations. Regulatory frameworks shape business strategies and expansion initiatives, guiding informed decision-making processes. Furthermore, this analysis uncovers avenues for innovation within existing regulations or by advocating for regulatory changes to foster innovation.

We faced significant challenges navigating the complex governmental rules and regulations associated with forensic auditing services. The Forensic Auditing Market Research Report published by 360iResearch provided us with invaluable insights and actionable strategies. Utilizing the report's findings, we were able to streamline our auditing processes and ensure compliance with stringent regulations. Our overall satisfaction couldn't be higher as it positively impacted our operations and fortified our organization's efficiency.
Alvarez & Marsal Holdings, LLC.
FPNV Positioning Matrix

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Forensic Auditing Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Forensic Auditing Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments
  • Forensic Risk Alliances announces partnership with TRM Labs

    Forensic Risk Alliance (FRA) has entered into a strategic partnership with TRM Labs to augment its capabilities in cryptocurrency investigations. FRA is expected to leverage TRM Labs' cutting-edge blockchain data platform and industry-leading forensic tools to track cryptocurrency transactions. The enriched blockchain data provided by TRM Labs can empower FRA in uncovering concealed patterns, detecting suspicious activities, and conducting comprehensive analysis within the domain of regulatory compliance and legal affairs. [Published On: 2023-05-26]

  • Davies launches new forensic accounting services

    Davis Forensic Group, LLC, a professional services and technology firm in insurance introduced a new forensic accounting service. The purpose of this service is to enhance the claim’s process and provide additional value to insurance clients. It is expected to be offered in collaboration with the firm's loss adjusting and claims TPA teams, leveraging their expertise in business interruption, cyber, and major and complex losses. [Published On: 2023-03-22]

  • EY Forensics and Integrity Services launches learning-as-a-service in ethics and compliance

    EY Forensics and Integrity Services introduced learning-as-a-service in ethics and compliance to facilitate convenient professional development. This initiative focuses on the complexities of various topics, such as code of conduct, anti-bribery, anti-corruption, and anti-money laundering. [Published On: 2023-01-30]

Strategy Analysis & Recommendation

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Forensic Auditing Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

As a leading player in risk and business consulting, we were facing significant challenges in mitigating fraud within our financial services. The Forensic Auditing Market Research Report by 360iResearch provided us with invaluable insights and actionable strategies. The report's comprehensive analysis enabled us to understand emerging trends and implement effective fraud prevention measures. Thanks to the report, we've seen a noticeable reduction in fraudulent activities, enhancing our overall operational efficiency. We're immensely satisfied with the positive impact this report has had on our organization.
Protiviti Inc. by Robert Half International Inc.
Key Company Profiles

The report delves into recent significant developments in the Forensic Auditing Market, highlighting leading vendors and their innovative profiles. These include Alvarez & Marsal Holdings, LLC., Protiviti Inc. by Robert Half International Inc., BDO International Limited, CRA International, Inc., Ernst & Young Global Limited, PKF O'Connor Davies LLP, Deloitte Touche Tohmatsu Limited, RSM International Ltd., Control Risks Group Holdings Ltd, GHD Advisory, Berkeley Research Group, LLC, Crowe LLP, HKA Global, KPMG International Limited, Grant Thornton International Ltd, AlixPartners, LLP, PricewaterhouseCoopers International Limited, Aon PLC, Eide Bailly LLP, Navigant Consulting, Inc., Eisner Advisory Group LLC, Baker Tilly US, LLP, Kroll, LLC., and FTI Consulting, Inc.,.

Forensic Auditing Market - Global Forecast 2024-2030
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Market Segmentation & Coverage

This research report categorizes the Forensic Auditing Market to forecast the revenues and analyze trends in each of the following sub-markets:

  • Investigation Type
    • Accounting Malpractice & Securities Investigations
    • Corruption & Bribery Investigation
    • Cross Border Investigations
    • Event & Data Analytics
    • Regulatory Investigations
  • End-use Industry
    • Financial Services
    • Healthcare
    • Manufacturing
    • Mining
    • Oil & Gas

  • Region
    • Americas
      • Argentina
      • Brazil
      • Canada
      • Mexico
      • United States
        • California
        • Florida
        • Illinois
        • New York
        • Ohio
        • Pennsylvania
        • Texas
    • Asia-Pacific
      • Australia
      • China
      • India
      • Indonesia
      • Japan
      • Malaysia
      • Philippines
      • Singapore
      • South Korea
      • Taiwan
      • Thailand
      • Vietnam
    • Europe, Middle East & Africa
      • Denmark
      • Egypt
      • Finland
      • France
      • Germany
      • Israel
      • Italy
      • Netherlands
      • Nigeria
      • Norway
      • Poland
      • Qatar
      • Russia
      • Saudi Arabia
      • South Africa
      • Spain
      • Sweden
      • Switzerland
      • Turkey
      • United Arab Emirates
      • United Kingdom

Before leveraging the Forensic Auditing Market Research Report by 360iResearch on the 'Emergence of social media analytics for fraud detection,' our organization faced significant challenges in accurately identifying and mitigating fraudulent activities in our complex, digital landscape. The report equipped us with critical insights and actionable strategies that transformed our approach to forensic auditing. By applying the innovative techniques provided, we enhanced our fraud detection capabilities, streamlined operations, and achieved higher levels of security and efficiency. The comprehensive analysis and practical recommendations were invaluable in driving our success. We highly recommend this report to any organization looking to proactively tackle fraud. BDO International Limited greatly appreciates the positive impact it has made on our operations.
BDO International Limited
This research report offers invaluable insights into various crucial aspects of the Forensic Auditing Market:

  1. Market Penetration: This section thoroughly overviews the current market landscape, incorporating detailed data from key industry players.
  2. Market Development: The report examines potential growth prospects in emerging markets and assesses expansion opportunities in mature segments.
  3. Market Diversification: This includes detailed information on recent product launches, untapped geographic regions, recent industry developments, and strategic investments.
  4. Competitive Assessment & Intelligence: An in-depth analysis of the competitive landscape is conducted, covering market share, strategic approaches, product range, certifications, regulatory approvals, patent analysis, technology developments, and advancements in the manufacturing capabilities of leading market players.
  5. Product Development & Innovation: This section offers insights into upcoming technologies, research and development efforts, and notable advancements in product innovation.

Additionally, the report addresses key questions to assist stakeholders in making informed decisions:

  1. What is the current market size and projected growth?
  2. Which products, segments, applications, and regions offer promising investment opportunities?
  3. What are the prevailing technology trends and regulatory frameworks?
  4. What is the market share and positioning of the leading vendors?
  5. What revenue sources and strategic opportunities do vendors in the market consider when deciding to enter or exit?

Table of Contents
  1. Preface
  2. Research Methodology
  3. Executive Summary
  4. Market Overview
  5. Market Insights
  6. Forensic Auditing Market, by Investigation Type
  7. Forensic Auditing Market, by End-use Industry
  8. Americas Forensic Auditing Market
  9. Asia-Pacific Forensic Auditing Market
  10. Europe, Middle East & Africa Forensic Auditing Market
  11. Competitive Landscape
  12. Competitive Portfolio
  13. List of Figures [Total: 20]
  14. List of Tables [Total: 204]
  15. List of Companies Mentioned [Total: 24]
The Growing Importance of Forensic Auditing in Banks and Financial Services
July 13, 2023
BLOG
The Growing Importance of Forensic Auditing in Banks and Financial Services
In the world of finance, subterfuge, and fraud have always been pressing concerns. As the financial industry becomes increasingly complex, it becomes more challenging to determine who can be trusted and who cannot. This is where forensic auditing comes into play. Forensic auditing is becoming increasingly popular as banks and other financial institutions seek ways to minimize fraudulent activities in their operations. In this blog post, we explore the use of forensic auditing in financial services, its benefits, and why it is becoming increasingly necessary.

What is forensic auditing?

Forensic auditing is a process used to investigate financial misconduct. It involves a detailed examination of financial statements and transactions and identifying any irregularities or fraudulent activities. The audit is carried out with the aim of obtaining evidence that can be presented in a court of law. Forensic auditors are not limited to accounting and financial expertise but may also possess legal expertise in forensic accounting.

Why is forensic auditing important?

Fraudulent activities can be a significant drain on organizations in the financial industry, causing significant reputational and financial damage to an organization. Forensic auditing helps prevent these fraudulent practices and helps organizations identify weaknesses in their financial reporting systems. In addition, forensic auditing provides a detailed report on how to minimize the risk of fraudulent activities in financial transactions.

How forensic auditing is used by banks and financial services:

Banks are one of the most targeted industries for financial fraud. Financial fraud can occur in many ways, such as embezzlement, money laundering, and insider trading. Forensic auditing in banks involves a series of procedures to track suspicious activities, analyze financial statements, and provide a detailed report indicating where the problems are and what measures can be taken to mitigate any risks.

The benefits of forensic auditing:

Forensic auditing has several benefits, including identifying and addressing fraudulent activities in financial institutions. The process can also help banks and financial organizations identify areas where they need to improve their financial reporting systems. This, in turn, helps the company’s financial performance by reducing the risk of fraud, improving efficiency, and ultimately increasing profits. Forensic auditing can also deter fraudulent activities, which sends a strong message to potential fraudsters in the organization and serves as a warning to anyone who might attempt to engage in fraudulent activities in the future.

Forensic auditing is essential for mitigating fraudulent activities in banks and financial institutions. In a landscape where financial fraud is widespread, banks must implement measures to prevent, detect and mitigate these activities. Forensic auditing provides a critical arm for the detection of fraudulent activities, enabling banks and financial organizations to identify and address vulnerabilities in financial reporting systems. It is, therefore, important to recognize the importance of forensic auditing and to take steps toward implementing it as part of an organization’s long-term strategy. By doing so, organizations can minimize potential risks and improve their overall financial performance.

Frequently Asked Questions
  1. How big is the Forensic Auditing Market?
    Ans. The Global Forensic Auditing Market size was estimated at USD 18.70 billion in 2023 and expected to reach USD 20.11 billion in 2024.
  2. What is the Forensic Auditing Market growth?
    Ans. The Global Forensic Auditing Market to grow USD 32.33 billion by 2030, at a CAGR of 8.13%
  3. When do I get the report?
    Ans. Most reports are fulfilled immediately. In some cases, it could take up to 2 business days.
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    Ans. We will send you an email with login credentials to access the report. You will also be able to download the pdf and excel.
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    Ans. We are approaching our 7th anniversary in 2024!
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