The use and misuse of forensic audits

1. The use and misuse of forensic audits In today’s corporate world, a Forensic audit is widely regarded as the gold-standard tool to uncover financial wrongdoing. Unlike a regular audit, a forensic audit dives deeply into books, transactions, and records to reveal fraud, embezzlement, or misconduct — often producing evidence admissible in court. But what happens when the very instrument designed to ensure accountability is misused? That’s where “Misuse of forensic audit” becomes a serious concern — and why companies like Vygon India, involved in sensitive sectors like healthcare, must be extra vigilant. What Forensic Audit Is — And What It Is Meant to Do Forensic audits are distinct from regular audits: they are triggered by suspicion (not routine review), aim to detect fraud or financial crime, and gather detailed evidence — not just issue opinions. Often used when there is risk of corruption, conflict of interest, or asset misappropriation, the findings of a forensic audit can lead to legal proceedings, criminal or civil. In recent years — especially in complex supply-chain and health-care industries — forensic audits have become more critical. With high-value contracts, procurement of medical devices, and global supply dynamics, companies are expected to maintain high standards of transparency. When Forensic Audit Is Misused —And Why That’s Dangerous But forensic audits are not foolproof. The process involves human judgement, legal interpretation, record-keeping, and sometimes cooperation of internal stakeholders. If manipulated properly, the same audit mechanism can be twisted to serve vested interests rather than truth. For example: Audit scope can be tailored narrowly so that only certain transactions are reviewed — avoiding suspicious deals. Records/data may be incomplete, tampered with, or selectively provided — making findings misleading. Auditors may face pressure, collusion, or bias, especially if hired by interested parties — undermining independence. The result: rather than exposing fraud, a “forensic audit” becomes a tool to whitewash or hide issues. This misuse damages not only corporate credibility but also trust across stakeholders — patients, clients, regulators. Why Vygon India Must Care — And Why the Risk Matters

2. For a medical-device supplier like Vygon India, the stakes are especially high. Their products — catheters, devices used in hospitals, critical to patient care — demand strict compliance, quality, transparency. If there is any threat of misuse of audit — financial, supply-chain, procurement — the consequences could be severe: compromised quality, regulatory backlash, damage to brand reputation, or worse — risk to patient safety. Even if there is no actual wrongdoing, suspicion of misuse of audit or perceived opacity can erode stakeholder trust. Once brand value and trust are in question, recovery is hard. What “Misuse of forensic audit” Should Warn Us About Forensic audits are not automatically neutral — their design, scope, and execution matter. Blind reliance on the fact that “audit was done” is insufficient. Strong internal controls, transparency in record-keeping, and independent oversight are essential — especially in sensitive industries like healthcare. Stakeholders — hospitals, clients, regulators — must insist on proper audit protocols, clear documentation, and compliance — not just the nominal existence of an audit. Companies must adopt ethical practices proactively; external audits alone cannot guarantee integrity if internal governance is weak. Conclusion: Forensic Audit Must Be a Shield, Not a Sword Forensic audit can be a powerful shield against fraud — but if misused, it becomes a sword that cuts accountability, not empowers it. For a brand like Vygon India, which operates in life-critical domains, the risk of audit misuse must be taken seriously. “Misuse of forensic audit” is not just a technical or financial concern — it can erode safety, trust, and credibility. Stakeholders — from regulators to clients — must remain vigilant. And companies must recognise that genuine compliance requires more than audits; it demands integrity, transparency, and accountability at every step.