Kuala lumpur: A forensic audit can help assess whether financial statements present a true and fair picture by examining the processes and decisions underlying their preparation, according to an expert. Universiti Teknologi MARA (UiTM) Faculty of Accountancy lecturer Prof Dr Nor Farizal Mohammed explained that forensic audits are generally undertaken in response to complaints, issues, or concerns and involve a more detailed and focused examination than conventional audits.

According to BERNAMA News Agency, Prof Dr Nor Farizal emphasized that a forensic audit is not merely about verifying whether a figure is correct. It seeks to establish how a transaction took place, who made the decision, why it was undertaken, and who benefited from it. She shared these insights while appearing as a guest on Bernama TV's Apa Khabar Malaysia programme, which discussed the topic "RCI Tabung Haji: Perakaunan Kreatif vs Perakaunan Forensik" (Tabung Haji RCI: Creative Accounting vs Forensic Accounting).

Nor Farizal highlighted that the investigation could involve scrutinizing original documents, invoices, emails, policies, and meeting minutes. The work is often carried out by enforcement agencies such as the Malaysian Anti-Corruption Commission (MACC) or government-appointed professional firms. She noted that if financial statements do not give a true picture, there is clearly something wrong, which could include overstating profits, hiding losses, recognizing revenue too early, or failing to account for a decline in asset value. Such practices could amount to manipulation or fraud.

The Royal Commission of Inquiry (RCI) report on the management and operations of Lembaga Tabung Haji (TH) between 2014 and 2020 was released on July 29, after the government decided to make its findings public. A special Dewan Rakyat sitting was held on August 11 to debate the findings. The MACC was reported last Thursday as considering appointing foreign forensic experts to examine TH-related investments, agreements, contracts, and meeting minutes. The commission has opened 14 investigation papers and detained seven individuals.