A forensic audit involves a detailed investigation of financial records that may indicate fraud, embezzlement, or other financial discrepancies. It is typically undertaken by forensic accountants who utilize various investigative techniques to analyze financial data, interview employees and stakeholders, and gather documentation to support their findings. The compiled evidence can be used for litigation, regulatory compliance, or internal investigations. Forensic audits are often required in cases of suspected financial misconduct or fraud, and they aim to provide a clear, objective report of findings that can be presented in a legal context.