What is defined as a financial investigation undertaken in response to a specific event?

A financial investigation undertaken in response to a specific event is termed a forensic investigation. This type of investigation is typically triggered by situations such as suspected fraud, financial discrepancies, or legal disputes. The primary goal is to uncover evidence that can be used in a legal context, which requires a systematic approach to collecting and analyzing financial data.

Forensic investigations are particularly detailed, employing specialized methodologies to dissect financial records and transactions. They often involve collaboration with law enforcement or legal teams to ensure that findings can withstand scrutiny in court. The focus on a specific event, such as a suspected fraud case, distinguishes this type of investigation from general financial assessments or audits, which may not be linked to a particular incident.

In contrast, financial liability refers to an obligation that an entity owes, which does not necessarily involve investigation. Forensic auditing is a broader term that can encompass various methods of scrutiny in financial contexts but does not specifically define the investigation's triggering purpose as related to a singular event. Firm commitment pertains to a contractual obligation regarding financing or investment and is unrelated to the investigative process.