The Tribune

EDITOR, The Tribune

I am a former lead forensic auditor for Medicaid fraud in the United States, a $85 billion subsidy to the State of Florida health plan. My audits have lead to high profile prosecution, I do understand a financial audit vs a forensic audit. I am also former auditor with the City of Miami, the largest city in Florida.

In a forensic audit, a conclusion is reached when there is an abundance of evidence and every rock gets turned over. In a financial audit we use samples, there are times the sample doesn’t represent the population. At this time you approached the auditee and request answers.

Respectably, Ms Susan Pratt seems to be confused between a financial audit and a forensic audit.

Financial Audit Defined

A financial audit, or a financial statement audit, is a process that provides the business owner assurance that the business’s financial statements fairly represent the business’s financial position, during the time period being investigated.

The auditor who conducts a financial audit looks over the financial statements for any signs of financial statement fraud.

What Is a Forensic Audit Defined?

A forensic audit is a thorough investigation into the business’s system of internal controls, in order to determine whether or not anyone within the company has misused the entity funds for personal gain.

This type of audit is used when asset-theft fraud is suspected. Forensic audits should only be performed by certified public accountants who are also certified fraud examiners.

Although I have not read the forensic report by Mr Bain, I can say with confidence and as another professional who has had the chance to review Mr. Bain’s report, he stands behind his work.

In my personal respectable opinion from reading all the hell fire about the report, instead of taking responsibility for the condition of internal control at the hospital, the easy way out is to pass the buck.

Nathaniel N McKenzie, CPA, CFE, CAM, MBA

October 19, 2014.