# Livo Assistant for Forensic Audit: AI for Fraud & Anomaly Detection Source: https://livoassistant.com/forensic Livo Assistant builds on-premise AI for forensic audit and investigation: full-population anomaly detection, related-party and shell-entity network analysis, and investigative document search across financial records, contracts, and communications. --- Livo Assistant for Forensic Audit: AI for Fraud & Anomaly Detection AI FOR FORENSIC AUDIT # Surface the Anomaly Before the Investigation Starts On-premise AI for forensic audit teams. Digitize the evidence, search every document, and flag the fraud patterns manual review misses across ledgers, contracts, and communications. [Talk to a founder → ](https://livoassistant.com/forensic#contact) Free guide The Forensic Audit Readiness Guide — 12-page PDF for investigation teams. [Read the guide → ](https://livoassistant.com/guides/forensic-audit) Full-Population Every transaction tested, not a sample Graph + Docs Network analysis across structured and unstructured evidence On-Prem Evidence never leaves your infrastructure Weeks From pilot to a live engagement FORENSIC AUDIT AI ## Digitize, Search, Detect, Report. Configured for Investigation. One stack across the forensic workflow: turn evidence into structured data, make it searchable, run full-population and network analysis over it, and produce findings that hold up under scrutiny. [01] ### Evidence Digitization & Communications Capture Turn ledgers, invoices, contracts, and call recordings into a single structured, timestamped evidence set, the entry point for any investigation. - OCR extraction from scanned ledgers, vouchers, contracts, and correspondence in any format - Transcription and structuring of call recordings, emails, and chat exports - Every item logged with source, timestamp, and hash for chain-of-custody integrity - Deployed on-premise, so no evidence is sent to external servers or third-party APIs Structured Evidence Chain of Custody Multi-Format Forensic Partners Investigation Teams Internal Audit [02] ### Investigative Document Search Ask questions of the entire evidence set in natural language and get source-linked answers in seconds instead of days of manual review. - Semantic search across ledgers, contracts, board minutes, emails, and chat logs at once - Natural-language queries such as "payments to entities registered after the contract date" - Every result linked back to the exact source document and line - Works across languages and mixed-quality scans Source-Linked Natural Language Multilingual Fraud Investigation Litigation Support Due Diligence [03] ### Anomaly & Fraud-Pattern Detection Run full-population testing across every transaction, not a sample, and surface the entries that warrant a closer look, ranked by risk. - Full-population journal-entry and transaction testing (aligned to SA 240 / PCAOB AS 2401) - Benford's-law, round-dollar, duplicate, split-payment, and off-hours pattern detection - Contract-term and pricing outliers flagged against the wider population - Communications red flags: pressure language, side-agreement references, concealment terms 100% Coverage Risk-Ranked Explainable Forensic Audit FWA / Compliance Grant & Fund Audit [04] ### Related-Party & Network Analysis Map the relationships between entities, directors, addresses, and bank accounts to expose undisclosed connections, shell entities, and circular money flows. - Graph analysis linking vendors, customers, employees, directors, and beneficial owners - Detection of undisclosed related parties, common addresses, and shared bank accounts - Round-tripping and circular-transaction chains traced across the ledger - Findings exportable as annotated network maps for the investigation file Entity Resolution Shell Detection Network Maps Related-Party Audit AML / Sanctions Procurement Fraud HOW THE ENGAGEMENT RUNS ## Anatomy of a Forensic Audit Six stages, from the first allegation to a court-ready evidence file, followed through one illustrative matter. - - - - - - CASE FILE FORENSIC ENGAGEMENT · REF FA-0417 ILLUSTRATIVE Matter Procurement fraud — suspected vendor routing Period under review Apr 2022 – Mar 2025 Vendors in scope 41 Spend under review ₹40.2 Cr Engagement On-premise · under NDA · chain of custody logged SCOPE LOCKED **STAGE 01 **The allegation sets the boundary — the entities, the period, and the full population of transactions that will be tested. Nothing is sampled away here. RAW EVIDENCE · 6 FORMATS - ▤ Scanned invoices _PDF _ - ▤ Bank statements _CSV _ - ▤ Purchase orders _XLSX _ - ▤ Vendor master _DB _ - ▤ Contracts _DOCX _ - ✉ Email export _PST _ UNIFIED DATASET DATE VENDOR DOC AMOUNT 2022-06-09 Apex Supplies INV-1188 ₹4,98,000 2022-11-21 Meridian Infra PO-3042 ₹12,60,400 2023-03-04 Apex Supplies INV-1512 ₹4,97,500 2023-08-30 Corvus Traders INV-2207 ₹9,10,000 2024-01-17 Blue Harbour INV-4419 ₹2,34,880 2024-09-02 Apex Supplies INV-1907 ₹4,99,000 + 9,405 more rows reconciled OCR · PARSE · NORMALIZE · HASH 9,411 Documents ingested 2,10,634 Emails indexed 6 Formats unified ONE DATASET **STAGE 02 **Paper, scans, exports, and mailboxes become one queryable dataset. Every record carries its source and a content hash, so any figure can be walked back to the document it came from. FULL-POPULATION TEST 1,000,000 transactions · every one scored 10,00,000 Transactions tested 100% Population coverage 312 Flagged for review 100% TESTED **STAGE 03 **Sampling estimates the error rate in a normal process. Fraud is deliberate and concealed, so a sample tends to walk past it. Every transaction in the population is scored — 312 come back flagged. RISK TRIAGE 312 flags scored on pattern, timing, and counterparty - INV-1907 · Apex Supplies ₹4,99,000 ₹1,000 under the ₹5,00,000 approval limit Third Apex invoice within ₹5,000 of the limit Posted 02:14 — outside business hours Vendor bank account matches an employee record Risk 0 - PO-3042 · Meridian Infra ₹12,60,400 Unit price 34% above the contract rate card No competing quote on file Risk 0 - INV-4419 · Blue Harbour ₹2,34,880 Vendor created 6 days before first payment No GST filing history Risk 0 Flagged **312 ** Elevated **81 ** High-risk **27 ** 27 HIGH-RISK **STAGE 04 **Each flag carries the rule that fired it and a link to the record. Ranked by pattern, timing, and counterparty, 312 flags resolve to 27 that warrant a full look. RELATED-PARTY GRAPH vendors, employees, and directors linked on shared identifiers 3 Shared identifiers 2 Shell entities 1 Undisclosed related party ROUND-TRIPPING TRACED **STAGE 05 **Apex Supplies shares a bank account with the procurement manager and a registered address with Corvus Traders. The payment trail runs company → vendor → shell → back. An undisclosed related party, mapped straight from the records. EVIDENCE FILE REF FA-0417 · COMPILED ILLUSTRATIVE Finding Payments routed through Apex Supplies and a linked shell to an account held by the procurement manager, split to stay under the ₹5,00,000 approval limit. **₹0.0 Cr **Exposure **0 **Transactions **0 **Entities **0 mo **Period Corroboration · email thread, 12 Aug 2024 > Procurement Mgr → Apex Supplies “Raise it as two invoices — under 5 lakh each so it doesn’t need sign-off .” Timeline - **Mar 2022 **Apex Supplies onboarded — no tender on file - **Jun 2022 **First invoice at ₹4,98,000 — ₹2,000 under the limit - **Nov 2023 **Apex bank account linked to an employee record - **Sep 2024 **One PO split across three sub-limit invoices Exhibits · source-linked and hashed - ✓ A — Ledger extract, 9,411 rows - ✓ B — Vendor master change log - ✓ C — Bank-account link analysis - ✓ D — Email thread, 41 messages CHAIN OF CUSTODY INTACT **STAGE 06 **Every figure links back to its source record and content hash. The file is built for the audit committee and for litigation — assembled on-premise, under NDA, with nothing exported. Stage 1 of 6 WHAT LIVO SURFACES ## The Patterns Manual Sampling Walks Past Forensic red flags rarely sit in one place. Livo runs these checks across the full population of transactions, contracts, and communications in a single pass. #### Undisclosed Related Parties Vendors, customers, or consultants connected to employees or directors through shared addresses, phone numbers, bank accounts, or ownership, none of it declared in the register. #### Round-Tripping & Circular Flows Money that leaves and returns through a chain of intermediaries, inflating revenue or moving funds off-book. Traced as a transaction chain across the ledger. #### Ghost & Duplicate Vendors Vendor-master entries with no operating footprint, near-duplicate names or bank details, or records created just before a large payment run. #### Duplicate & Split Payments Identical or near-identical invoices paid more than once, and payments split to stay under an approval threshold. #### Off-Period & Backdated Entries Journal entries posted at unusual hours, on weekends, by unexpected users, or dated into a closed period: classic override indicators. #### Contract-Term & Pricing Outliers Clauses, rates, or margins that deviate sharply from comparable contracts: unusual advances, waived penalties, or single-source awards. #### Communications Red Flags Pressure language, references to side agreements, requests to move a discussion off-channel, or concealment terms across email and chat. #### Journal-Entry Overrides Manual top-side adjustments, entries to rarely used accounts, and postings that bypass the normal sub-ledger route. Livo is engaged by audit and advisory firms and by corporate internal-audit and compliance teams. Engagements run under NDA and we do not disclose client names or matters. The illustrative capability figures on this page describe how the system works, not a specific client result. HOW WE ENGAGE ## Three Steps. Zero Risk. Full Chain of Custody. We start with two completely free steps. Every engagement is under NDA and deployable fully on-premise before you commit a rupee or a dollar. 01 ### Free Forensic AI Workshop A focused session with your forensic partners, investigators, or internal-audit leads to map where AI compresses the work, whether evidence review, full-population testing, or network analysis, on the kinds of matters you actually run. 100% Free 02 ### Free AI Roadmap A prioritized implementation plan with effort estimates, scoped to your evidence volumes, data sources, and case-management tools. Yours to keep with no obligation. 100% Free 03 ### Pilot on a Live Matter We build a working pilot on a real engagement's data, deployed inside your infrastructure, with full audit logging. You see the findings before you commit beyond the pilot scope. Your Decision ### See what full-population testing surfaces Start with the readiness guide, or book 30 minutes with a founder to map where AI adds the most coverage on your work. EVIDENCE INTEGRITY & INDEPENDENCE ## Built So the Findings Hold Up A forensic tool is only useful if its output survives challenge. Every system we deploy is designed around evidence integrity, explainability, and the investigator's independence. #### On-Premise & Air-Gap Capable Deployed inside your data center or a private, isolated environment. Ledgers, contracts, and communications never touch a cloud service or third-party API. #### Immutable Audit Trail Every document ingested, every query run, every flag raised is logged with timestamp, user, and source hash: a complete, reproducible record for the investigation file. #### Explainable, Source-Linked Output Each flag states why it fired and links to the underlying records. No black-box scores. Findings can be walked through line by line with a regulator, board, or court. #### Investigator in the Loop The system surfaces and ranks; it does not conclude. Every finding is reviewed and dispositioned by your team. The tool assists the investigation, it does not form the opinion. #### Matter Segregation Role-based access with strict separation between engagements. Data and models for one matter are never visible to a team working another. #### DPDP 2025 & GDPR Compliant Personal data handled in line with India's Digital Personal Data Protection Rules (2025) and the GDPR, with data residency configurable to the jurisdiction of the matter. #### NDA from Day One Every engagement begins under a mutual NDA before any data is shared or any system is accessed. Confidentiality is a precondition, not an afterthought. #### Works With Your Stack Connectors for existing case-management, e-discovery, DMS, and ERP systems. The AI layer sits on top of what you already run. WHY LIVO ASSISTANT ## Forensic AI Expertise Without the Enterprise Price Tag Generic analytics tools don't understand fraud typologies. E-discovery platforms don't do full-population financial testing or network analysis. We sit at the intersection, on your infrastructure. Aspect Generic Analytics / E-Discovery Tools Livo Assistant for Forensic Audit Domain Knowledge Generic pattern search **Configured around fraud typologies and audit standards ** Scope of Testing Keyword search or sampling **Full-population transaction testing ** Structured + Unstructured One or the other Ledgers and communications analyzed together Network Analysis Add-on or absent Related-party and shell-entity graph built in Deployment Vendor cloud **On-premise / air-gap by default ** Discovery / Workshop Paid consulting **Free ** Pilot to Live Matter Months 4–6 weeks Start with zero risk. Get a forensic AI roadmap specific to the matters you run before committing a rupee or a dollar. FORENSIC FAQ ## Questions Forensic Leaders Ask Us What audit and investigation teams want to know before bringing AI into an engagement. No. The system digitizes evidence, makes it searchable, and surfaces and ranks anomalies across the full population. Every flag is reviewed and dispositioned by your team. It compresses the review work and widens coverage; it does not form conclusions or opinions. Yes. Livo runs full-population testing over structured transaction data and semantic analysis over unstructured evidence such as emails, chat exports, contracts, and board minutes in the same engagement, so a ledger anomaly can be tied to the correspondence around it. Every item is logged on ingestion with its source, timestamp, and a content hash. Every query and every flag is recorded with the user and time. The result is a complete, reproducible audit trail you can attach to the investigation file. Findings are explainable and source-linked: each flag states the rule or pattern that triggered it and points to the underlying records. There are no black-box risk scores you can't defend. A reviewer can walk any finding back to source line by line. Yes. The standard deployment is inside your infrastructure or a private, isolated environment. No evidence is sent to external servers or third-party APIs. Data residency is configurable to the jurisdiction of the matter. Typically 4–6 weeks. The AI configuration is quick once the data pipeline is clear; the longest step is usually securing access to the evidence and connecting to your case-management or ERP systems. Yes. Livo is engaged by audit and advisory firms and by corporate internal-audit and compliance teams. All engagements are under NDA and we do not disclose client names or the matters involved. FREE GUIDE ## The Forensic Audit Readiness Guide The first 72 hours, an evidence source map, chain-of-custody standards, a fraud-scheme detection-test matrix, and a printable pre-engagement checklist. Written for forensic, internal audit, and compliance teams. [Get the guide → ](https://livoassistant.com/get-the-guide?guide=forensic) LEADERSHIP ## We bring McKinsey-grade strategy with senior AI engineering execution ### Soumya Sharma Co-Founder Ex-McKinsey IIM-Ahmedabad IIT-Delhi, Computer Science [Connect on LinkedIn ↗ ](https://www.linkedin.com/in/rithn/) ### Kangana Pandiya Co-Founder Ex-McKinsey IIM-Ahmedabad [Connect on LinkedIn ↗ ](https://www.linkedin.com/in/kangana-pandiya/) ## Let's Map Your Forensic AI Opportunity Book a 30-minute discovery call. We'll identify the highest-leverage use case on your engagements, whether evidence review, full-population testing, or network analysis, and map a clear implementation path. Thank you! We'll reach out within 24 hours to schedule your discovery call. Or [email us directly ](mailto:soumya@livoassistant.com)