Financial reporting is one of the most important factors affecting the overall business, in particular
investment decision making. External audit aims to determine accuracy and objectivity of financial
statements, i.e., disclosure of funds, resources and business performances in the financial statements,
and to form an opinion based on the information provided. Therefore, the purpose of externaltraditional
audit is not fraud detection that frequently appears in the background of an incorrect,
unfair and unlawful presentation of financial statements. This has triggered the necessity to provide
a new kind of auditing services that would be directed towards fraud prevention and detection. The
answer to this need is the emergence of forensic audit, which differs from external audit in terms
of its goals and character. There is no generally accepted definition of this concept, and the paper
suggests differences in its definition and characteristics and differences in relation to external audit.
The authors also attempt to point out to certain limitations that impede the development of a new
audit discipline, which has justified its existence and indicated the necessity for its further development,
both in theory and practice.
P. Vukadinović, V. Mizdraković, G. Knežević, “THE CHARACTERISTICS OF FORENSIC AUDIT AND DIFFERENCES IN RELATION TO EXTERNAL AUDIT,” in FINIZ 2015 - Contemporary Financial Management, Belgrade, Singidunum University, Serbia, 2015, pp. 202-205. doi: 10.15308/finiz-2015-202-205
Vukadinović, P., Mizdraković, V., Knežević, G. (2015). THE CHARACTERISTICS OF FORENSIC AUDIT AND DIFFERENCES IN RELATION TO EXTERNAL AUDIT. Paper presented at FINIZ 2015 - Contemporary Financial Management. doi:10.15308/finiz-2015-202-205