Forensic Accounting

[Name of the Institute]

Abstract

In his paper I will be discussing the concept of forensic accounting and its implication in the real world. The term forensic accounting is a combination of two words, forensic refers to in-depth study and investigation in any field of study and when this approach is applied in accounting it means the investigation of authenticity or fraud in accounting transactions. Forensic accounting reveals the authenticity of transactions conducted, which are already reflected in the accounting documents were the subject of research and audit, tax, or subject of the investigation of the judiciary. Examination of accounting will help to determine the quality of previous audits, to assess the reliability of the data, which are reflected in the primary documents, accounting records and financial statements. The importance of forensic accountants is to help organizations and governments to build capable, transparent, and accountable institution.

Table of Content

Forensic Accounting3

The Need for Forensic Accountants and Fraud Examiners3

Litigation Support3

Investigation and Dispute Resolution4

Forensic Accountant as an Expert Witness4

Civil and Criminal Trials5

Conclusion5

Forensic Accounting

Forensic Accounting

Forensic accounting reveals the authenticity of transactions conducted, which are already reflected in the accounting documents were the subject of research and audit, tax, or subject of the investigation of the judiciary. Examination of accounting will help to determine the quality of previous audits, to assess the reliability of the data, which are reflected in the primary documents, accounting records and financial statements. Forensic accounting is a very important, exciting and powerful career that has been growing even more so in today's turbulent economy. With the prices of goods rising, volatility of the U.S. currency and percentage of job loss increasing, forensic accounting has become a demanding field of work.

The Need for Forensic Accountants and Fraud Examiners

Forensic accountants are trained to not only detect fraud but also to detect the cover up of fraud or evidence. In today's world, more and more criminals are becoming sophisticated in concealing fraud. Criminals, whether on paper or internet, are always studying ways to minimize their footprints on committing fraud. Forensic accountants also identify and assess corruption risk in organizations (Albrecht, 2006).

Forensic accountants also specialize in investigative work and can be engaged by businesses, government, regulatory authorities, insurance companies and financial institutions in this regard. The forensic accountant should be called in as soon as a problem is identified. A good and experienced practitioner has seen most things before and can diagnose the extent of a problem from preliminary information given by his client. He or she is also trained to investigate sensitive matters, such as director or employee fraud, on a confidential basis.

Litigation Support

One of the unique booms that has occurred in accountancy over the past decade has been in the highly specialized field of accountancy litigation, or forensic accounting. This area of practice has seen rapid growth due to an increasingly litigious society, the demand for more accurate quantification in litigation cases, and the lucrative supplementary income professionals can earn as expert witnesses. Many professionals may choose, or be called upon to attend ...