ABC Pharmaceuticals Ltd., a listed company, is under forensic investigation following the resignation of its statutory auditors. The auditors cited concerns over financial irregularities. An internal audit revealed the f

ABC Pharmaceuticals Ltd., a listed company, is under forensic investigation following the resignation of its statutory auditors. The auditors cited concerns over financial irregularities. An internal audit revealed the following: Multiple vendor payments just under the ₹ 10 lakh approval threshold. Repetitive vendor invoice amounts ending in specific digits. Round-number expense reimbursements from a group of employees. Suspicious fund transfers through group companies to offshore accounts and back to related parties (possible layering). Email evidence of backdated invoices and manipulated purchase orders. As a forensic auditor, answer the following questions: Explain the concept of layering in forensic audit. How would you trace and establish a layering mechanism in the fund transfers ?