Forensic auditing and weak signals : a cognitive approach and practical tips

Abstract

Purpose: This study aims to establish the possibility of using weak signals during forensic auditing. Approach/Methodology/Design: The insights in this paper have emerged iteratively through consideration of both theory and the empirical case based on public auditors' database analysis. Such an approach is consistent with an abductive approach. Findings: A detailed analysis revealed that there is a need to use weak signals in forensic auditing practices. Besides, it was found that forensic auditing is not developed by supreme audit institutions, which are the most crucial auditor in the public sector. Such situation questions the effectiveness of these organisations in the fight against irregularities in the public sector. Practical Implications: The article brings several valuable information that can be the base material and reference to further research. It provides practical tips on how to plan and carry out forensic auditing using weak signals. Originality/Value: There are several studies on forensic auditing or weak signals; however, the research question – how to use weak signals during forensic auditing was without an answer. It is the first such research in the World. Besides, the article presents the original definition of forensic auditing.