Basic facts and frequently asked questions

What is fraud?

There is no precise legal definition of fraud. However, fraud is commonly defined as the use of deception and misrepresentation with the intention of obtaining a personal gain or advantage, which can cause a loss to another party.
Fraud is a crime, deception, extortion, bribery, forgery, corruption, theft, misappropriation, false representation and concealment of material facts.

Forensic is effectively a synonym for "legal", "related to courts" or suitable for use in a court of law.
Forensic accounting utilises investigation, auditing and accounting skills in review of financial and business information, statements, reports, documents and relations of the examined company.
Forensic accountants utilize an understanding of accounting and auditing standards and procedures, evidence gathering and investigative techniques, and litigation processes and procedures to perform their work.

Collection, aggregation and evaluation of information related to entities and individuals in public sources in the Czech and Slovak republic.

Processes which include "digging" of hidden information from wide data files and databases.
Disclosure of unknown or unexpected relations, patterns or links, which can be, by its nature, vital to the company.

A situation that occurs when an individual with a formal responsibility to serve either the public or his company participates in an activity that jeopardizes his professional judgment, objectivity and independence.
A principle under which outside activities, relationships, or financial interests of an individual were duly determined to prevent the individual from appearing to be or being motivated by a desire for private gain.

The objective of statutory audit is to express an opinion whether the financial statements present fairly, in all material respects, the company’s financial position as at year end, the results of its operations and its cash flows for the year, in accordance with the requirements of the relevant Accounting Standards for Business Enterprises and the Accounting Regulations for Business Enterprises. A financial auditor expresses its opinion on the financial statements.
The objective of the forensic audit is the investigation of a fraud or presumptive fraud with the intent to gather evidence that could be presented in a court of law. A forensic accountant does not express its opinion with respect to guilt of the investigated entity or individual.