Forensic Audit vs Value for Money Audit

Over the last little while - both on WL Speak Up (Facebook page) and the Facebook election pages for WL Mayoral Candidate SPS Rathor & WL City Councillor candidate Bobbie-Jo Macnair - the idea to have a forensic audit of City of Williams Lake finances being completed ASAP has recently come up

Let's look at the accounting definition of a forensic audit:

Forensic Audit involves the use of auditing and investigative skills to situations that may involve legal implications. Forensic audits may be required in the following instances:

Fraud investigations involving misappropriation of funds, money laundering, tax evasion & insider trading

Quantification of loss in case of insurance claims


Determination of the profit share of business partners in case of a dispute


Determination of claims of professional negligence relating to the accountancy profession

Findings of a forensic audit could be used in the court of law as expert opinion on financial matters.


While a Value for Money audit, which the Cariboo Regional District itself is undergoing right now, is defined as:

Value for money audits involves the assessment of the efficiency, effectiveness and economy of an organization's use of resources. Value for money audits are increasingly relevant to sectors which do not have profit as their main objective such as the public sector and charities. They are usually performed as part of internal audit or public sector audit.

While I can appreciate why some may feel strongly that a forensic audit is required of City of WL finances immediately - I would respectfully suggest that City of WL Finances do not require an immediate forensic audit as this type of audit could be perceived that fraud is, in fact, already occurring at the City which is there no public evidence of this while a Value for Money audit, while not laying blame, could address the concerns now being brought forward by some including local resident Jack Simpson on Ms. Macnair's Facebook election page.

I have already suggested to Ms. Macnair and Councillor Rathor, if both elected as Councillor and Mayor respectively, that both consider pursuing the idea of a Value of Money audit first and should circumstances warrant it, then a forensic audit could be ordered later, depending on the evidence gathered during a Value for Money audit...

~SF