Forensic Audit

Financial misconduct can remain hidden behind ordinary transactions, invoices, contracts, and accounting entries.

Our forensic audit services in the UAE help businesses investigate suspected fraud, misappropriation, financial irregularities, and disputed transactions through structured financial analysis and evidence review.

Eighty20 Business and Financial Solutions examines financial records, banking information, invoices, contracts, accounting data and other relevant documentation to identify unusual transactions, trace the movement of funds and establish a clearer financial picture.

Our forensic work can support management investigations, legal advisers, dispute resolution, regulatory enquiries and other situations where financial facts need to be examined carefully.

What Is a Forensic Audit?

A forensic audit is an investigative examination of financial information conducted when fraud, financial misconduct, asset misappropriation or another financial irregularity is suspected.

Unlike a standard financial statement audit, which focuses on whether financial statements are materially misstated, forensic work investigates a specific concern, allegation, transaction, or pattern of activity.

Depending on the circumstances, a forensic investigation may examine:

• Bank transactions
• General ledger entries
• Supplier payments
• Customer receipts
• Expense claims
• Payroll information
• Contracts
• Purchase orders
• Invoices
• Emails and other available communications
• Accounting system data
• Related-party transactions
• Asset transfers
• Employee or management activity

The objective is to reconstruct relevant financial events and report the findings supported by the available evidence.

When Does a Business Need a Forensic Audit?

A business may consider a forensic investigation when there are warning signs such as:

• Money disappearing without a clear explanation
• Unusual bank transfers
• Duplicate supplier payments
• Suspicious expense claims
• Unexplained changes in financial records
• Fake or unknown vendors
• Inventory losses
• Manipulated invoices
• Unusual related-party transactions
• Conflicts of interest
• Payroll irregularities
• Management override of financial controls
• Suspected bribery or kickbacks
• Asset misappropriation
• Financial information that does not match supporting documents

Not every irregularity proves that fraud occurred.

The purpose of the investigation is to establish what the records and available evidence actually support.

Forensic Audit vs Financial Audit

Although both involve financial records, a forensic audit and a financial statement audit have very different objectives.

Area	Forensic Audit / Investigation	Financial Audit
Main objective	Investigate suspected fraud, misconduct or a specific financial issue	Express an opinion on whether financial statements are materially misstated
Trigger	Usually starts because of an allegation, red flag or dispute	Usually performed annually or because of statutory, regulatory or stakeholder requirements
Scope	Focused on identified transactions, people, periods or allegations	Covers financial statements as a whole
Fraud focus	Fraud or misconduct is often the central subject	Auditor considers fraud risk, but detecting every fraud is not the primary objective
Evidence	May involve detailed transaction tracing, document review and digital information	Audit evidence is gathered to support the audit opinion
Interviews	May include structured interviews where appropriate	Management enquiries form part of audit procedures but are not normally investigative interviews
Asset tracing	May form part of the investigation	Not normally a core financial audit procedure
Litigation support	Can support lawyers and dispute teams where within scope	Not normally the objective
Audit opinion	No statutory financial statement audit opinion	Yes
Output	Findings report, schedules, transaction analysis or other agreed deliverables	Independent auditor’s report
Typical users	Management, boards, legal advisers, investigators or regulators	Shareholders, regulators, lenders and other financial statement users

A forensic investigation therefore does not replace a statutory financial audit where an audit is required.

Under the UAE Commercial Companies Law, every joint stock company and limited liability company must have one or more auditors conduct an annual audit of its accounts. The same law also requires companies to prepare annual financial accounts using international accounting standards and principles.

Our Forensic Audit Services in UAE

Fraud Investigation

Our fraud investigation audit UAE support examines suspicious financial activity to determine what happened, how transactions were processed, and which financial records support the allegation. The scope may include transaction analysis, ledger review, payment tracing, supplier analysis, customer account review, payroll investigation, expense analysis, related-party transactions, and financial document review.

The scope may include:

• Transaction analysis
• Ledger review
• Payment tracing
• Supplier analysis
• Customer account review
• Payroll investigation
• Expense analysis
• Related-party transactions
• Financial document review

Findings are based on the evidence available during the engagement.

Asset Tracing

Asset tracing follows the documented movement of money or other assets through accounts, transactions and entities.

This may be useful where there is concern about:

• Misappropriated funds
• Unauthorised transfers
• Undisclosed transactions
• Diverted business assets
• Hidden financial relationships
• Disputed ownership
• Partnership disputes

The ability to trace or recover assets depends on the information available, legal rights, jurisdictions involved, and the cooperation of relevant parties.

An accounting investigation should therefore not promise asset recovery.

Procurement and Vendor Fraud Investigation

Procurement fraud can involve employees, suppliers or both.

We can review issues such as:

• Duplicate invoices
• Fictitious suppliers
• Inflated pricing
• Unapproved suppliers
• Unusual purchasing patterns
• Split purchase orders
• Conflicts of interest
• Payments without adequate supporting documentation

Supplier master data, payment records, and purchasing activity can be analysed to identify unusual relationships or patterns requiring further investigation.

Expense and Employee Fraud Investigation

Employee-related fraud may include:

• False expense claims
• Duplicate reimbursements
• Fictitious employees
• Payroll manipulation
• Unauthorised allowances
• Personal spending through company accounts
• Company card misuse

We compare transactions against available HR, payroll, approval, and supporting records.

Financial Statement Manipulation Review

Some investigations arise because financial results appear inconsistent with underlying business activity. Our financial fraud detection services UAE can review areas such as revenue recognition, expense classification, journal entries, receivables, payables, inventory, provisions, related-party transactions, asset valuations, and period-end adjustments to identify unusual accounting treatment or entries requiring further examination.

Depending on scope, we can review areas such as:

• Revenue recognition
• Expense classification
• Journal entries
• Receivables
• Payables
• Inventory
• Provisions
• Related-party transactions
• Asset valuations
• Period-end adjustments

The objective is to identify unusual accounting treatment or entries requiring further examination.

Financial Forensics and Transaction Analysis

Our financial forensics services use accounting records and transaction data to reconstruct financial events. A forensic accountant UAE may analyse bank accounts, general ledgers, supplier accounts, customer accounts, related entities, cash movements, and asset transactions to establish a structured financial trail based on available documentation.

This can be particularly useful when the question is:

Where did the money go?

The investigation may follow transactions through:

• Bank accounts
• General ledgers
• Supplier accounts
• Customer accounts
• Related entities
• Cash movements
• Asset transactions

The result is a structured financial trail based on available documentation.

Litigation Support

Financial disputes often involve complex calculations or large volumes of accounting records. Our litigation support accounting UAE services can support legal teams by organising and analysing financial information relevant to contract disputes, shareholder disputes, partnership disputes, loss calculations, business interruption claims, misappropriation claims, asset tracing, transaction reconstruction, and commercial damages.

Potential areas include:

• Contract disputes
• Shareholder disputes
• Partnership disputes
• Loss calculations
• Business interruption claims
• Misappropriation claims
• Asset tracing
• Transaction reconstruction
• Commercial damages

The forensic accountant’s role should remain within the agreed professional scope.

Legal strategy and legal conclusions remain matters for the client’s lawyers.

Expert Financial Analysis

Where appropriate and legally permitted, forensic accounting work can assist lawyers and courts by explaining complex financial information.

However, the appointment, admissibility and status of an expert in UAE proceedings depend on the applicable procedural and evidentiary requirements.

We therefore do not describe every forensic engagement as automatically producing “court-approved” or “court-ready” evidence.

How Is Financial Evidence Handled in the UAE?

Evidence handling is particularly important when an investigation may lead to legal proceedings.

The UAE Evidence Law recognises electronic evidence derived from data or information generated, stored, extracted, copied, transmitted or received through information technology where it is retrievable in an understandable form.

Forensic work may therefore involve both paper and electronic records.

Depending on the matter, relevant evidence may include:

• Accounting system exports
• Emails
• Electronic invoices
• Bank records
• Payment logs
• System-generated transaction records
• Digital contracts
• Electronic approvals

Where litigation is expected, the investigation should be coordinated with legal advisers so evidence collection and preservation are handled in a way appropriate to the specific proceeding.

UAE Legal and Regulatory Considerations

A forensic investigation can touch several UAE legal and regulatory areas depending on the nature of the matter.

UAE Commercial Companies Law

Company accounting records can form an important part of forensic investigations.

Under the UAE Commercial Companies Law, companies must maintain accounting records that demonstrate their transactions and allow the company’s financial position to be established accurately.

Companies are generally required to keep those accounting records at their headquarters for at least five years following the end of the relevant financial year.

UAE Corporate Tax Records

Corporate Tax documentation creates another important financial record trail.

The UAE Federal Tax Authority requires Taxable Persons and relevant Exempt Persons to retain records and documents supporting their Corporate Tax position for at least seven years following the end of the relevant Tax Period.

These records may become relevant where an investigation involves tax-related accounting information.

UAE Anti-Money Laundering Framework

The UAE’s AML framework was significantly updated through Federal Decree-Law No. 10 of 2025 and its Executive Regulations under Cabinet Resolution No. 134 of 2025, which became effective in December 2025.

Under the framework, covered Financial Institutions, Designated Non-Financial Businesses and Professions, and Virtual Asset Service Providers have obligations concerning suspicious transaction identification and reporting.

Where reasonable grounds exist to suspect that transactions or funds relate to criminal proceeds or relevant financial crime, covered entities are required to submit Suspicious Transaction Reports through the applicable mechanism.

A private forensic investigation should not be presented as replacing those regulatory reporting obligations.

Sector-Specific Requirements

Additional requirements can apply to regulated businesses.

Depending on the company, this may involve authorities such as:

• Central Bank of the UAE
• Securities and Commodities Authority
• Financial Services Regulatory Authority in ADGM
• Dubai Financial Services Authority in DIFC
• Federal Tax Authority
• Relevant licensing authority

The investigation scope should therefore take account of the entity’s actual regulatory environment.

What Types of Fraud Can a Forensic Investigation Examine?

Employee Fraud

Examples may include unauthorised payments, expense manipulation or company asset misuse.

Procurement Fraud

This may involve fictitious suppliers, kickbacks, inflated invoices or conflicts of interest.

Management Fraud

Investigations may examine unusual journal entries, transactions or reporting decisions involving management-level access.

Payroll Fraud

Potential issues include fictitious employees, unauthorised salary changes, duplicate payments and manipulated allowances.

Asset Misappropriation

This may involve cash, inventory, equipment or other business assets.

Related-Party Transactions

Transactions involving owners, directors, affiliates or related businesses may require examination where commercial terms or financial flows are unclear.

Financial Statement Manipulation

Accounting entries may be reviewed where there are concerns about overstated revenue, understated expenses, hidden liabilities or other financial reporting irregularities.

Bribery and Kickback Allegations

Transaction analysis may help identify payments, vendors, or financial relationships that require further investigation.

Money-Laundering Red Flags

Forensic accountants may help analyse transaction patterns that appear inconsistent with expected commercial activity.

Formal AML reporting and legal conclusions remain subject to the applicable UAE regulatory framework.

Our Step-by-Step Forensic Investigation Process

Step 1: Define the Allegation and Scope

Every forensic engagement should begin with a clear question.

For example:

• Are supplier payments being manipulated?
• Did company funds move without authorisation?
• Are expense claims genuine?
• Why is inventory missing?
• Were accounting records altered?
• Where did a particular payment go?

We establish the scope, relevant period, entities involved, and information required.

Step 2: Preserve Relevant Information

Potentially relevant records are identified so they can be preserved and reviewed.

Depending on the engagement, this may include:

• Accounting records
• Bank information
• Invoices
• Contracts
• Emails
• Payroll files
• Approval records
• System reports
• Purchasing documents

Where legal proceedings are anticipated, evidence-preservation decisions should be coordinated with legal counsel.

Step 3: Analyse Financial Data

Transactions are reviewed for unusual patterns or inconsistencies.

We may analyse:

• Payment trends
• Duplicate transactions
• Round-value payments
• Unusual timings
• Related accounts
• Supplier relationships
• Repeated bank details
• Manual journal entries
• Unexplained adjustments

Step 4: Trace Transactions

Relevant payments may be followed through accounting records and available banking information to reconstruct the financial trail.

Step 5: Review Supporting Documents

Transactions are compared with supporting records such as invoices, purchase orders, contracts and approvals.

Step 6: Conduct Relevant Enquiries

Where appropriate and within scope, information may be obtained from individuals who can explain transactions, processes or supporting documentation.

Step 7: Assess the Findings

We distinguish between:

• Confirmed facts
• Documentary evidence
• Identified inconsistencies
• Unresolved questions
• Reasonable financial observations

This is important because suspicious activity does not automatically prove criminal conduct.

Step 8: Prepare the Report

The final report may include:

• Executive summary
• Scope of work
• Documents reviewed
• Methodology
• Transaction analysis
• Timeline of events
• Financial schedules
• Key findings
• Unresolved matters
• Control weaknesses
• Recommendations

The format depends on the purpose and agreed scope of the investigation.

What Do You Receive from a Forensic Audit?

Depending on the engagement, deliverables may include:

Deliverable	Purpose
Forensic Findings Report	Summarises financial findings from the investigation
Transaction Analysis	Shows relevant movements of money
Financial Timeline	Reconstructs important events chronologically
Asset-Tracing Schedule	Documents identified asset or fund movements
Exception Report	Highlights unusual or unsupported transactions
Evidence Index	Organises reviewed documentation
Loss Calculation	Estimates financial impact where appropriate
Control Recommendations	Identifies weaknesses that may require remediation
Litigation Support Schedules	Provides structured financial analysis for legal advisers where applicable

The final deliverables should be agreed before the investigation begins.

Who Uses Forensic Audit Services in the UAE?

Forensic investigations may be useful for:

Business Owners

Where owners suspect internal financial misuse or unexplained losses.

Boards and Audit Committees

Where independent investigation is required into allegations involving employees or senior management.

Legal Teams

Legal teams may require financial analysis for litigation, arbitration, or another commercial dispute. A forensic audit for legal dispute UAE can help organise relevant accounting records, reconstruct transactions, analyse financial losses, and provide structured financial findings for legal advisers to assess alongside the applicable law and evidence.

Investors

Where financial irregularities emerge during due diligence.

Shareholders and Business Partners

Where disputes involve company money, assets or transactions.

Banks and Financial Businesses

Where transaction analysis or fraud investigation is required within the applicable regulatory framework.

Family Businesses

Where disagreements arise regarding company assets, distributions or financial records.

How Does Forensic Accounting Support Litigation?

Commercial disputes often involve financial questions rather than purely legal questions. Businesses may hire forensic auditor Dubai support to examine which payments were made, whether certain invoices were genuine, how company funds were used, which party received particular payments, and what the accounting records actually show.

For example:

• What financial loss occurred?
• Which payments were made?
• Were certain invoices genuine?
• How were company funds used?
• Which party received particular payments?
• What do the accounting records actually show?

A forensic accountant can organise and explain this financial information so legal advisers can assess it alongside the relevant law and evidence.

The accountant does not replace the lawyer or the court.

How Is Fraud Loss Calculated?

Loss calculations depend on the nature of the allegation.

Possible approaches may involve:

• Identifying unauthorised payments
• Quantifying unsupported expenses
• Calculating diverted revenue
• Comparing expected and actual cash
• Quantifying missing inventory
• Calculating disputed transaction values
• Assessing lost profits where an appropriate methodology is available

The calculation should clearly identify its assumptions and limitations.

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