International Auditing Standards
(ISA, IFAC, ACFE) Forensic Approaches
Hasanali Aliyev
Abstract. In the modern economic environment, the increasing complexity of financial transactions, the growth of corporate risks, and the emergence of various forms of financial statement manipulation have made it necessary to apply deeper and more analytical approaches in auditing. In this regard, forensic auditing acts as an important mechanism in international audit practice for detecting financial fraud, collecting evidence, and forming legally grounded conclusions. Although forensic auditing is not defined as a separate standard within the International Standards on Auditing, several standards, particularly ISA 240, emphasize professional skepticism, risk-based assessment, and the investigation of unusual transactions as key elements of the forensic approach. The ethical and methodological principles promoted by IFAC serve to strengthen auditors’ independence, objectivity, and professional judgment. The ACFE model, in turn, provides more practical tools for the prevention, detection, and investigation of fraud. This approach not only strengthens evidence-based decision-making in the audit process, but also enhances public and institutional confidence in the reliability of financial statements. This article comparatively analyzes the ISA, IFAC, and ACFE approaches and substantiates the importance of forensic approaches in enhancing financial transparency, reducing corporate fraud, and improving audit quality.
Keywords: forensic auditing, international auditing standards, ISA, IFAC, ACFE, financial fraud, skepticism