Forensic Accounting in Practice



Forensic Accounting in Practice

Introduction

Forensic accounting is basically a specialty area in which accountancy is practiced in order to describe the engagements that are made for uncovering the actual or expected litigation or disputes. The term 'forensic' refers to as 'something that can be used in law or in a court', and it is to that potential and standard outcome that accountants of forensic usually have to perform. Forensic accounts also known as investigative or forensic auditors and are required to provide expert evidences on any criminal activity in a form at the final basis. In this assignment, there will be a discussion about some important skills that are required and practiced by forensic accountants; role played by a forensic accountant in courtroom environment; analysis of the legal responsibilities of a forensic accountant in any business or organization; and in the last, there will a research of at least two cases describing importance and role of forensic accountants.

Discussion

The lawful challenges of determining the wrongdoing and financial damages are in most cases are complicated and delicate. Engaging an efficient forensic accountant in business organization is required as he provides support in taking any legal action or to investigate the accounting so that it could become a valuable and prudent move towards effectively tackling such challenges that come in ways of operating business.

Five skills that a Forensic Accountant needs to Possess and its Evaluation

It is also a challenge for business organizations to hire or engage really skillful and effective forensic accountants as not each expert is feasible for each type of case, and being a proficient accountant does not always transform into being a competent forensic accountant. For this purpose, this job requires a set of skills and specialized knowledge and it is essential to see for those qualifications when hiring a forensic accountant (Ramaswamy, 2005).

Technical Expertise

Unlike conventional accounting, forensic accountant withstand with severe challenges and scrutiny in their investigations. Thus, they must possess an improved skill of the engagement with the technicality. The appropriate professional should be highly analytical of the principles of accounting, audit, and taxes so that in a business organization, he could prove his ability accurately for collecting related proofs, for applying the techniques for analysis of those proofs, and for exercising expert judgment in evidences' evaluation (Smith & Crumbley, 2009).

Credibility

Objectivity, superior ethical standards, and independence all combine together and make an influential witness and a credible expertise. The appropriate forensic accountant will listen the counseling attentively about the case, but will assess the weaknesses and strengths by formulating an independent judgment. Such skills help a business organization to support an argumentation of convincing efficiently in front of jury and judge (Smith & Crumbley, 2009).

Communication Skills

The concepts of economics and accounting may often threaten most of the general public. An expert forensic accountant will simplify and condense the problematical information and present it in understandable terminologies. For this purpose, both written and verbal skills are essential for effective interpretation of financial ...