This article delves into the essential role of forensic auditing in identifying financial anomalies by addressing both red flags and 'too good to be true' situations. Forensic audits, distinct from traditional audits, focus on uncovering evidence of fraud and misconduct. Red flags—such as inconsistent financial reporting, lack of transparency, and unusual behavioural patterns—serve as warning signs for potential fraud, while 'too good to be true' scenarios, including excessively high returns and rapid revenue growth, demand rigorous validation. The article details forensic auditing techniques, including data analytics, substantive testing, and independent verification, to navigate these challenges, ensuring accuracy in financial reporting and mitigating the risk of deception.