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Forensic Accounting

In: Business and Management

Submitted By jarul856
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Forensic accounting is the specialty practice area of accountancy that describes engagements that result from actual or anticipated disputes or litigation. "Forensic" means "suitable for use in a court of law", and it is to that standard and potential outcome that forensic accountants generally have to work. Forensic accountants, also referred to as forensic auditors or investigative auditors, often have to give expert evidence at the eventual trial.
There are several organizations worldwide that provide continuing education and certification for forensic accountants. There has been a growing need for this specialized field with recent company scandals that have occurred.
Forensic accountants utilize an understanding of business information and financial reporting systems, accounting and auditing standards and procedures, evidence gathering and investigative techniques, and litigation processes and procedures to perform their work. The main goal of their engagements is to provide the answers to the how, where, what, why, and who committed the alleged allegations. They will use the same basic procedures for obtaining evidence of the crimes that they investigate. They will examine records and interview suspects to determine the answers to these questions. Forensic accountants are also increasingly playing more proactive risk reduction roles by designing and performing extended procedures as part of the statutory audit, acting as advisers to audit committees, fraud deterrence engagements, and assisting in investment analyst research.
Most companies will not publicize that they have used the services of a forensic accountant because they do not want the public to know that something had happened, but sometimes it is out of their hands when it does become public knowledge. We have provided some examples of cases were forensic work been used to uncover the...

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