Forensic Audit Services in Dubai

When financial records do not add up, unexplained payments appear, or you suspect that someone has misused company funds, you need more than a routine financial audit. You need an independent investigation that examines the transactions, follows the available evidence and explains what happened. AEY Auditing of Accounts provides forensic audit and financial investigation support in Dubai and across the UAE — helping businesses, shareholders and management examine suspected financial irregularities, investigate suspicious transactions, analyse potential losses and understand the financial facts behind a concern.

At a Glance

Item	Detail
Service	Independent forensic audit and financial investigation
Focus	A defined concern — fraud, missing funds, disputed transactions, accounting irregularities or a shareholder dispute
Approach	Evidence-based; separates supported findings from indicators and open questions
You receive	Findings report, transaction analysis, chronologies, limitations and next-step recommendations
Typical clients	Business owners, shareholders, boards, audit committees, legal advisers, investors and buyers
Fees	Scoped quotation after a confidential initial discussion

What Is a Forensic Audit?

A forensic audit is a focused investigation of financial records, transactions and supporting information. It uses accounting analysis, investigative procedures and evidence review to answer specific questions about suspected fraud, financial misconduct or disputed financial activity.

Unlike a routine financial statement audit, a forensic audit concentrates on a particular concern. The investigator examines the relevant records, identifies unusual transactions, checks supporting documents, follows fund movements and evaluates whether the available evidence supports the issue under investigation.

A forensic audit may help answer questions such as:

When Does a Business Need Forensic Audit Services?

A company should consider a forensic investigation when it identifies a specific financial concern that ordinary accounting checks cannot adequately explain.

1. Suspected employee fraud or embezzlement

Unusual employee payments, unauthorised transfers, missing cash, unsupported reimbursements or unexplained changes to accounting records can indicate possible misuse of company resources. A forensic investigation can examine payment records, approval trails, payroll information, expense claims and relevant accounting entries to establish what the available evidence shows.

2. Missing company funds or unexplained bank transactions

Unreconciled bank balances, unexpected transfers, repeated withdrawals or payments to unfamiliar beneficiaries can create serious concerns for management and shareholders. The investigation can trace relevant transactions across available bank statements, ledgers, invoices and supporting documents.

3. Vendor, supplier or procurement fraud

Duplicate invoices, inflated purchase orders, unusual supplier relationships, split payments and payments without adequate supporting records may indicate procurement irregularities. A forensic review can compare supplier records, purchase orders, contracts, delivery evidence, approvals and payment histories.

4. Shareholder and business partner disputes

Financial disagreements between shareholders or business partners often involve questions about distributions, related-party transactions, expenses, company assets or the use of business funds. An independent financial investigation can examine the relevant records and explain the financial position, disputed transactions and supporting evidence.

5. Suspected financial statement manipulation

Unusual journal entries, unsupported revenue, incorrect expense classification, unexplained balance movements or inconsistent accounting records can affect the reliability of financial information. A forensic audit can focus on the relevant accounts, transactions, documents and reporting periods.

6. Whistleblower complaints or internal allegations

A whistleblower may report a suspected conflict of interest, false payment, misuse of company assets or financial misconduct. Management or the board may commission an independent investigation to assess the allegation, examine the records and document the findings without assuming the allegation is true.

7. Commercial disputes and legal proceedings

A financial disagreement may involve unpaid balances, disputed invoices, shareholder accounts, contractual payments or the calculation of financial losses. A forensic accounting investigation can help explain the underlying financial records and provide factual analysis for management and legal counsel. Where a court-appointed expert is required, the parties must follow the applicable legal appointment and qualification requirements.

Forensic Audit and Financial Investigation Services

AEY can assess the appropriate scope based on the issue, the records available and the purpose of the engagement.

Financial fraud and irregularity investigation

We examine selected financial transactions, ledger entries, bank movements and supporting documents to identify inconsistencies and investigate suspicious activity. The investigation may focus on unusual or unauthorised payments, unsupported expenses, suspicious journal entries, duplicate or manipulated transactions, unexplained account balances, related-party payments, and differences between accounting records and source documents.

Employee theft and asset misappropriation review

We examine relevant records to investigate suspected misuse of company funds or assets. Depending on the agreed scope, the work may include reviewing expense claims, payroll records, cash transactions, payment authorisations, inventory movements and supporting documents. For related control-focused work, see our internal audit services.

Vendor and procurement fraud investigation

We examine supplier transactions and procurement records to identify potential irregularities. Our review may compare vendor master records, purchase orders and contracts, supplier invoices, delivery and receipt records, payment approvals, bank transfers, and related-party or conflict-of-interest indicators. For focused testing of payables, see our payables audit.

Fund tracing and transaction analysis

We follow selected payments and financial movements through the available records to understand where funds moved, which accounts received them and whether the transactions have adequate supporting documentation. The outcome depends on the completeness of the records and access to the relevant financial information. A transaction-tracing exercise does not guarantee that investigators can locate or recover assets.

Shareholder and management dispute investigation

We examine disputed financial matters such as shareholder balances, distributions, loans, expenses, related-party dealings and movements of company assets. Our analysis can help stakeholders understand the financial facts and identify the transactions that require further clarification.

Financial statement manipulation review

We investigate selected financial statement balances and accounting entries when management identifies possible misstatements or manipulation. Depending on the matter, the work may include reviewing revenue, expenses, receivables, payables, inventory, provisions, journal entries and reconciliations.

Litigation and dispute-related financial support

We can scope financial analysis and reporting around questions raised by management or legal counsel. The engagement should identify the questions, records, procedures and reporting format before the investigation begins. A forensic accounting report is not automatically a court-appointed expert report. Where the engagement requires a registered or court-appointed expert, the parties must confirm the relevant legal requirements separately.

What Does a Forensic Audit Examine?

The investigator selects records that relate directly to the concern. The scope may include:

Records or information	What the investigator examines
General ledger and trial balance	Unusual entries, unexplained balances and account movements
Bank statements	Transfers, withdrawals, beneficiaries and payment patterns
Sales and purchase invoices	Duplicate, unsupported or inconsistent transactions
Contracts and purchase orders	Payment terms, approval conditions and supplier obligations
Payroll and expense records	Unusual payments, reimbursements and employee claims
Inventory records	Stock differences, adjustments and unexplained movements
Fixed asset records	Asset purchases, disposals and ownership records
Related-party accounts	Loans, transfers, balances and transactions with connected parties
Emails and system records	Relevant communications or system logs, where lawfully provided and within the agreed scope
Tax and accounting records	Selected tax-related entries and their connection with the investigation

The scope does not automatically include every record listed above. AEY should define the relevant sources and procedures after it understands the issue.

How Does the Forensic Audit Process Work?

A structured investigation helps the client understand the work, protect relevant information and follow the findings.

What Will a Forensic Audit Report Include?

The report depends on the engagement scope and the information available. It may include:

Forensic Audit vs. External Audit vs. Internal Audit

Businesses often confuse these services because all three may involve reviewing financial records. Each service has a different objective.

Service	Main purpose	When a business uses it
Forensic audit	Investigates a defined suspicion, irregularity or financial dispute	Suspected fraud, missing funds, disputed transactions or financial misconduct
External audit	Provides independent assurance on financial statements	Annual reporting, applicable statutory or regulatory requirements, stakeholder assurance
Internal audit	Evaluates controls, risks and business processes	Improving governance, identifying control weaknesses, monitoring business operations
Compliance audit	Evaluates compliance with specified rules, policies or requirements	Checking whether activities and controls meet defined obligations
Agreed-Upon Procedures	Performs specific procedures agreed with the engaging parties and reports factual findings	A targeted verification where the parties define the procedures in advance

Choose the engagement based on the question you need answered. For a deeper look at the audit options, see our Audit & Assurance services.

Who Can Benefit from Forensic Audit Services in the UAE?

A forensic audit may help different stakeholders understand a financial concern.

For transaction-related assessment before an investment or acquisition, see AEY's Due Diligence Services. For a broader review of business value in a dispute, see our business valuation services.

Confidentiality, Evidence and UAE Legal Considerations

Forensic investigations often involve confidential commercial information, employee records, banking data and communications. The investigator should define who may access the information, how the parties will transfer it and how the team will protect it during the engagement.

The engagement should also distinguish an independent financial investigation from a legal investigation or court-appointed expert appointment.

The following official UAE references provide relevant legal context:

• Federal Decree-Law No. 35 of 2022 — Law of Evidence in Civil and Commercial Transactions. Sets out evidence rules for civil and commercial matters. It does not guarantee that every privately prepared forensic report will be admitted or accepted by a court.
• Federal Decree-Law No. 21 of 2022 — Regulating the Profession of Experts before Judicial Authorities. Relevant when a matter requires an expert operating within the judicial expert framework.
• Federal Decree-Law No. 41 of 2023 — Regulating the Auditing and Accounting Professions. Provides the UAE's professional regulatory framework for accounting and auditing activities.
• Federal Decree-Law No. 45 of 2021 — Protection of Personal Data. Where this law applies, the parties should address the lawful handling and protection of personal data during the investigation.

Where the concern touches on money-laundering risk or reporting obligations, see our AML services and compliance audit pages.

Why Contact AEY Auditing for a Forensic Investigation?

A financial investigation needs a clear objective, an appropriate scope and careful examination of the supporting records. AEY Auditing of Accounts provides audit and assurance services in Dubai and across the UAE. Our team can discuss your concerns, identify relevant financial records and assess the scope of work required for the engagement.

Our approach focuses on:

Related services: internal audit, audit readiness support, risk assessment and internal control design, and liquidation services. For a view of issues that commonly surface in investigations, see our guide to common audit problems.

Professional Leadership

Read more about Yusuf Fakhree and AEY's professional team.

Frequently Asked Questions About Forensic Audit Services