1. Investigation
“Investigation involves inquiry into facts behind the books and accounts into the technical, financial and economic position of the business or organisation.”

2. Essentials for Investigations
Familiarity with the documents and details of the business
Assistance of technical expert
Not influenced by the employees

3. Definition
“The term Investigation implies an examination of the accounts of a business for some special purpose.” Spicer and Pegler “Investigation involves enquiry into the facts behind the accounts i.e into the technical, financial and economic position of the business organisation.” Taylor and Perry

4. Characteristics of Investigation
Critical examination
Examining officials
Financial, political, economical and managerial aspects are covered
Conducted with specific objectives
Scope of investigation may be limited or extended
Submission of report to client
Factual information in analytical and descriptive way
No specific rules
Suggests the outline for future course of action

5. Approaches to investigation
Identification of objectives
Formulation of programme of investigation
Examination of records and collection of evidence
Analysis of findings and preparation of report

6. Difference between Audit and Investigation

7. Types of investigation
Investigation of behalf of a person who is interested to join a partnership firm as a partner
Investigation on behalf of a person or company which wants to purchase a running business
Investigation on behalf of a person who wants to lend money to a business and is interested to know its financial position
Investigation in case the proprietor of the business suspects fraud
Investigation on behalf of a prospective shareholder who wishes to make a valuation of shares of a limited company
An investigation when a person seeks different avenues of investment
Statutory investigation when fraud is suspected

8. Duties of investigator

9. Position of Investigator