Forensic Accounting & CFE Services

What is forensic accounting? Forensic accounting applies investigative techniques to detect, prevent, and resolve financial fraud, embezzlement, and misrepresentation. It combines accounting expertise with investigation skills and legal knowledge to produce findings admissible in court or regulatory proceedings. CA V. Viswanathan holds the Certified Fraud Examiner (CFE) credential from ACFE USA — one of the few practicing CAs in India with this combination of forensic and valuation credentials. Quick Answer: Forensic Accounting & CFE Services — Forensic accounting by Certified Fraud Examiner (CFE, ACFE USA). Fraud investigation, financial due diligence, whistleblower investigations, asset tracing, litigation support.

Regulatory Framework

Regulatory basis: ACFE Fraud Examination Standards. Indian Evidence Act, 1872. Prevention of Corruption Act, 1988. Companies Act Section 447 (Fraud).

Services

Fraud Investigation Financial Due Diligence (PE/VC) Whistleblower Investigation Asset Tracing Litigation Support Expert Witness Testimony Employee Fraud Detection Vendor Fraud Analysis Financial Statement Forensics AI Model Auditing Benford's Law Analysis Duplicate Payment Detection

Financial Due Diligence for Startup Investment

Regulatory basis: Every PE/VC investor should conduct financial due diligence before closing. Our CFE methodology goes beyond verification — we look for what the company is NOT telling you.

Red flags we detect: revenue recognition anomalies (channel stuffing, bill-and-hold), related party transaction patterns (circular transactions, self-dealing), cash flow vs. profit disconnects (profit without cash), capitalisation of expenses (inflating assets), founder personal expenses through the company, and inflated metrics (GMV vs. net revenue, unverified user counts).

AI Model Auditing — A New Frontier

Applying CFE fraud examination methodology to AI/ML models: derivative analysis of model outputs (detecting when a model produces content that is derivative of training data without attribution), architecture forensics (examining model design decisions for bias and limitation), training data provenance assessment, and performance claim verification (testing whether the model delivers what the company claims it can do). Based on our published Sarvam AI architecture analysis at virtualauditor.in/learn/.

Forensic vs Statutory vs Internal Audit

Engagement terms — reviewed 25 October 2026

• Fee: From ₹1,50,000 + 18% GST; the fee is fixed against the agreed scope.
• Extra / not included: Court attendance, expert testimony and data-recovery vendors are separate.
• Turnaround: Agreed per scope in the engagement letter, counted in working days from receipt of complete information and the advance payment.
• Who signs: The report is signed by V. Viswanathan, Certified Fraud Examiner (ACFE), or another qualified professional of the practice, depending on the engagement.
• Entity: Engagement letter and invoice are issued by Virtual Auditor Private Limited.
• What to send first: Send a description of the concern and period, the entities involved, and the accounting systems and records to which access can be given.
• Next step: Send your enquiry on WhatsApp to +91 99622 60333; we confirm the scope, fee and timeline in writing before work starts.

Step-by-Step Process

Step 1

Define scope and engagement terms

Step 2

Collect financial records and digital evidence

Step 3

Apply Benfords Law and statistical analysis

Step 4

Map vendor-employee-payment relationships

Step 5

Quantify loss and document evidence chain

Step 6

Prepare investigation report (court-admissible)

What You Will Receive

Upon completion, you will receive: forensic investigation report (typically 50-200 pages depending on scope), executive summary with key findings and financial impact quantification, detailed evidence chain documentation (transaction trails, bank statement analysis, digital forensic findings), Benford's Law and statistical analysis outputs, witness interview summaries, recommendations for internal control improvements, and an evidence package formatted for legal proceedings (criminal complaint/civil suit). Report reviewed by CA V. Viswanathan (CFE — Certified Fraud Examiner).

Latest Regulatory Updates (FY 2025-26)

This page has been updated to reflect changes introduced in Budget 2025, recent notifications from CBDT, CBIC, MCA, SEBI, and RBI, and evolving compliance requirements for FY 2025-26. Virtual Auditor continuously monitors regulatory developments to ensure all advice and filings are current and compliant with the latest provisions.

Expert Guides & Research

Deepen your understanding with our published research and practical guides:

• Forensic Accounting & Fraud Investigation Services in India — Read at forensic accounting fraud investigation services
• Employee Fraud in Indian SMEs — Detection & Prevention Guide — Read at employee fraud indian smes detection prevention

When Is Forensic Accounting & CFE Services Not Required?

A forensic investigation may not be required when: (a) the suspected irregularity can be resolved through internal inquiry without external forensic expertise, (b) the matter involves a simple accounting error rather than deliberate fraud, (c) the amounts involved are below the materiality threshold for the organisation, or (d) law enforcement has already initiated investigation and external forensic support would duplicate efforts. Forensic accounting is essential when fraud is suspected involving systematic diversion, financial statement manipulation, or insider misconduct requiring court-admissible evidence.

If you are unsure whether your situation requires forensic accounting & cfe services, contact us for a free preliminary assessment. We will advise you honestly — including telling you if you do not need our services.

Documents Required

The following documents are needed to initiate the forensic accounting & cfe services process:

Audited financial statements for the period under review, trial balance with sub-ledger details, bank statements for all accounts, fixed asset register, loan agreements and sanction letters, related party transaction details, statutory compliance records (GST returns, TDS returns, ROC filings), and minutes of board meetings and general meetings.

We provide a personalised document checklist after the initial consultation, tailored to your specific entity type and situation. Documents can be shared securely via email or our client portal.

Timeline and Turnaround

Typical turnaround for a forensic engagement: scoping and preservation of records within 3-5 working days; investigation and analysis in 4-8 weeks depending on scope and data volume; the final report, and any expert evidence, on the schedule set by the client, the board or the forum.

Timelines assume prompt submission of complete documents and information. We provide a clear project timeline at the start of every engagement.

Who Needs Forensic Accounting & CFE Services?

No law makes a forensic audit compulsory for every business; it is commissioned when there are signs of fraud or when a dispute needs evidence. Typical situations: (a) the statutory auditor has reported suspected fraud under section 143(12) of the Companies Act, 2013 and the board or audit committee needs an independent investigation; (b) a listed company must disclose the start of a forensic audit and its outcome under Regulation 30 of the SEBI (LODR) Regulations, 2015; (c) a lender has red-flagged a borrower account and asks for a forensic review; (d) a resolution professional or liquidator must examine preferential, undervalued, extortionate or fraudulent transactions under sections 43, 45, 50 and 66 of the Insolvency and Bankruptcy Code, 2016; (e) shareholders, partners or family members dispute the use of funds or assets; and (f) an investor wants forensic due diligence before investing.

Legal Exposure When Fraud Goes Unaddressed

Fraud under section 447 of the Companies Act, 2013 involving at least Rs 10 lakh or one per cent of turnover (whichever is lower) is punishable with imprisonment of six months to ten years (at least three years where public interest is involved) and a fine of at least the amount involved, up to three times that amount. Directors confirm under section 134(5) that proper care has been taken to safeguard assets and to prevent and detect fraud, and auditors must report suspected fraud under section 143(12). In insolvency, the resolution professional must form an opinion on avoidable and fraudulent transactions within the time limits of the CIRP Regulations, which depends on a timely transaction review.

An early, well-documented investigation protects the company, its directors and the evidence. Contact Virtual Auditor to scope an investigation confidentially.

Indicative Fee Structure

Our fees for forensic accounting & cfe services are transparent and competitive. We offer fixed-fee engagement models wherever possible, so you know the cost upfront. Pricing depends on the complexity of the engagement, entity type, and regulatory requirements involved. Contact us for a customised quote — initial consultation is free with no obligation.

Government Portal and Online Filing

Filings related to forensic accounting & cfe services are submitted through the relevant government portal. We handle all online filings on your behalf, including portal registration, form preparation, document upload, and acknowledgment tracking. You do not need to navigate the portal yourself — we manage the entire digital interface.

What has changed in the law — reviewed October 2026

• Income-tax Act, 2025: assented to on 21 August 2025 and in force from 1 April 2026, it replaces the Income-tax Act, 1961 for tax year 2026-27 onward, and the Income-tax Rules, 2026 (notified 20 March 2026) replace the 1962 Rules. Section and rule numbers on this page are those of the 1961 Act and 1962 Rules, which continue to govern assessments, appeals and pending proceedings for assessment years up to 2026-27; for tax year 2026-27 onward the corresponding provisions of the 2025 Act apply, and our engagement letters quote both.