Differences between Financial and Fraud Auditing Financial audit is the review of financial statements of the organization. A financial audit exercise is taken to be the process that seeks to verify financial statements of an entity. This is done with a view of expressing or making an audit judgment about a legal entity. On the other hand, financial audit ensures that monetary information is recorded and reported in a just way. This encompasses all material aspects of the entity and seeks to give a just view as stipulated by financial frameworks. Thus, the main principle of providing financial statements is to develop confidence among the users of financial statements. A financial audit examines all the procedures and ways that are used to transmit financial information in an organization. Besides, it requires one to gather all documents related to financial aspects of the firm. Some of the documents reviewed include; sales receipts, bank statements, and even invoices. Assessment of proper recording is done so that all forms of errors can be detected. Furthermore, there is a check on compliance with the accounting policies and principles. The next step involves assessing the record-keeping policies to ensure that there is efficiency. Here, auditors determine the accessibility and retrieval of financial records. The next step involves reviewing of the elements of the entity’s accounting system (Rezaee & Riley, 2009). Various accounts should be checked for compliance with the accounting system. For instance, it is a requirement that such systems should identify and correct errors. Furthermore, the auditing firm looks at the internal control policies and the level of protection that firms provide against fraud. This would involve the procedures for accessing all financial documents and even the signatories. Besides, financial auditing involves making a comparison between internal cash holding and external records. It also involves a comparison between external and internal records relating to incomes and expenses. Finally, the process involves making an analysis of internal and official tax returns relating to the company. Deductions and credits should also be reviewed to check for error and inflated expenses. On the other hand, fraud auditing encompasses a careful review of all financial credentials with the aim of determining the differences. In fact, it is searching for aspects that do not mesh in financial statements of the firm. Moreover, a financial audit increases confidence in financial statements, whereas fraud audit addresses issues of fraud in an entity (Rezaee & Riley, 2009). At other times, it is done to avert the occurrence of fraudulent activities. Unlike financial audit that has various steps and assessments, fraud audit encompasses a series of interviews. This is aimed at determining the depth of fraud in an entity. Thus, the auditing firm can interview people such as managers, employees and even business owners. This is essential in obtaining information that will identify or show people or departments responsible for fraudulent actions. The next step involves the issuing of reports on the findings. This is aimed at providing information to stakeholders about t