...IMPORTANCE OF IMPLEMENTING FORENSIC ACCOUNTING IN LISTED COMPANIES IN MALDIVES BUSINESS RESEARCH METHODS AIHAM MOHAMED AHMED TP029473 Table of Contents CHAPTER 1 3 1.1 ITRODUCTION 3 1.2 BACKGROUND OF THE STUDY 3 1.3 STATEMENT OF THE PROBLEM. 4 1.4 RESEARCH OBEJCTIVES 5 1.5 SIGNIFICANCE OF THE STUDY 6 1.6 SCOPE OF FEASILBILTY OF THE STUDY 7 1.6.1 SCOPE 7 1.6.2 FEASIBILITY OF THE STUDY 7 CHAPTER 2- LITERATURE REVIEW 8 2.1 DEFINITION OF FORENSIC ACCOUTING. 8 2.2 IMPORTANCE OF FORENSIC ACCOUNTING IN LISTED COMPANIES IN MALDIVES. 9 2.2 FORENSIC ACCOUNTING HELPS TO ELIMINATE CORRUPTION. 10 2.3 FORENSIC ACCOUNTING INFLUENCES THE ORGANIZATIONAL PERFORMANCE 11 2.3 CURRENT SITUATION IN MALDIVES. 12 CHAPTER 3 – RESEARCH METHODOLOGY 14 THEORETICAL FRAMEWORK 14 3.2 TYPES OF DATA 16 3.3 SAMPLING DESIGN 17 3.4 DATA ANALYSIS 17 3.5 HYPOTHESIS TESTING 18 4. CONCLUSION 19 REFERENCE 20 IMPORTANCE OF IMPLEMENTING FORENSIC ACCOUNTING IN LISTED COMPANIES IN MALDIVES. CHAPTER 1 1.1 ITRODUCTION The main purpose for this research to be carried out is to investigate the importance of forensic accounting in the business world, and how important it is to implement a solid forensic accounting system in the listed companies in Maldives. This chapter provides an overview of the study that contains the background of the study, the statement of the problem, research objectives, significance of the study the limitations faced while doing the...
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...Forensic Accounting In Practice Contemporary Business 508 This paper discusses the role of forensic accounting practices. It takes a look at the skills sets of forensic accountants and the role they play out in the court room. It goes also analyzes the legal responsibilities of a forensic accountant form a professional perspective as their role for expert opinion in the court room. A forensic accountant is someone uses their accounting credibility for investigative or other legal applications, such as corporate acquisition, divorce proceedings, insurance settlements, or other legal purposes (Brody, Melendy, & Perri, 2012). Determine the most important five (5) skills that a forensic accountant needs to possess and evaluate the need for each skill. Be sure to include discussion regarding the relationship between the skill and its application to business operations. The first identifiable important skill for a forensic accountant to posses is investigative intuitiveness. The forensic accountant should possess creative and analytical thinking (DiGabrielle, 2008). According to DiGabrielle, the ability to solve a financial puzzle with an incomplete set of pieces is an extremely important characteristic for forensic accountants (p. 336). The forensic accountant is providing a service to a client for the purpose of expert information as it pertains to legal matters or for the purpose of finding or preventing financial misrepresentation. Their role is not to merely...
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...Forensic Accounting In Practice Herbert Lee | Bus 508 Professor Badger Fardanesh 1. May 16, 2013 Forensic Accounting Defined According to Crumbley (2009)“ Forensic Accounting” is reducing the complexity of accounting practices by distilling information and slicing away at deceptions to help a judge or jury to see the essence of financial disputes. It is a practice that goes beyond auditing and analyzing accounting information. With accounting practice and standards at its core Forensic accounting goes above and beyond what the auditor does. Crumbley (2009) contends that a forensic accountant may take on fraud auditing engagements but will use other accounting, consulting and legal skills to broaden their engagements. The discipline of forensic accounting is being utilized not only in a courtroom setting but also in public discussions, debates, civil matters like divorces, insurance companies, banks and the business community at large. From a general perspective forensic accounting focuses on digging into the final accounts but will follow a lead into records of original entries. These accountants cover the areas of litigation support and investigative accounting. They are seeking out the cause and effect and according to the article FTB Tax Services (2011) it states that the primary orientation of forensic accounting is the explanatory analysis of phenomena- including possibly the discovery of deception, and its effect- introduced into an accounting system domain...
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...Forensic Accounting in Practice Gabrielle Bryant Dr. Carolyn Green Contemporary Business 11/17/2013 Determine the most important five (5) skills that a forensic accountant needs to possess and evaluate the need for each skill. Be sure to include discussion regarding the relationship between the skill and its application to business operations Although forensic accounting is not a new field, it has become more talked about since cases like Enron came to light. For someone interested in the Forensic Accountant profession they should know that this field can be time consuming, but very rewarding. People who work in this career investigate white collar crimes such as company fraud, fraudulent financial record reporting, and illegal investment schemes. In a recent study by the Federal Bureau of Investigation shows that white collar crimes have cost the United States and estimated 300 billion dollars (DiGabriele 2008). I think five of the skills that a forensic account would need are communication skills, detail oriented, professional and ethical behavior, sound judgment and discretion. Communication skills are vital in any profession. It allows you to convey information for others to receive. The problem with communication is that it can be interpreted differently by other intended parties. As a forensic accountant, communication skills, verbal and non-verbal, are important when it comes to conducting interviews and gathering information. After gathering the records, forensic...
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...There are fraudulent accounting procedures taking place in many businesses all across the world, and many companies have been going a number of years covering up the real financial value of their company. Forensic accountants are becoming much needed as accounting frauds, financial scams, and various economic scandals are beginning to increase globally. This type of accountant does more than the typical accountant of a business or corporation, because their objective is to investigate fraudulent activities being used in the accounting departments of these companies. The amount of fraud being used by companies globally is most likely going to increase in the future as technology is evolving and scammers are getting more creative. This will also lead to a gradual decrease in the investment rates in companies, because the risks of investing in a corrupt business world will outweigh the benefits. Potential investors in companies using creative accounting techniques will increasingly become more at risk if there is no exponential growth in the field of investigative accounting. Accounting scams are becoming a part of the normal occurrence of day to day activities as this type of fraudulent activity is frequently gaining exposure in the daily news worldwide. As owners and managers conceal the financial state of their companies by manipulating their financial statements, the reliability and trust of these statements by investors are decreasing. Illegal accounting procedures are not being...
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...Forensic Accounting Practice Bradford Clark Professor Dr. Hanners Lithonia Campus BUS 508 – Contemporary Business March 1, 2012 Strayer University Determine the most important five (5) skills that a forensic accountant needs to possess and evaluate the need for each skill. Be sure to include discussion regarding the relationship between the skill and its application to business operations. A forensic accountant is a specialist in accounting and financial systems that is trained to detect white collar fraud. Forensic Accounting is a fast growing field in the in the field of accounting. Although it has been around for a long time, it has become increasingly popular in the past few years as there have been a number of corporate scandals, stricter reporting, and internal control regulations involving public awareness and importance in the business world. With the state of the world’s economy forensic accountants are in high demand. Forensic accountants should at least possess a Bachelor degree in accounting. They should also be a Certified Public Accountant (CPA) and may possess other certifications such as Certified Forensic Accountant (CrFA) and Certified Forensic Accounting Professional (CFAP). The skills needed to become a forensic accountant include strategic critical thinking, problem solving/decision making, leadership, interpersonal and communication skills, and professional and ethical behavior. Strategic critical thinking is the ability to link data, knowledge...
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...Determine the most important five skills that a forensic accountant needs to possess and evaluate the need for each skill. Be sure to include discussion regarding the relationship between the skill and its application to business operations. As the annual price tag for fraud at American business soars to nearly $1 trillion, the demand for Certified Public Accountants that provide forensic accounting services has increased exponentially- a spike that appears in no danger of waning over the next several years. (Carlino, 2010) With the demand for forensic accounting services increasing, it is very beneficial for prospective employers and employees to know what skills are needed to fulfill the duties of this very important occupation in today’s society. “Forensic accounting encompasses collecting, analyzing, and evaluating evidence, and the interpreting and communicating the findings in courts, boardrooms or other venues.” (Carlino, 2010) There are numerous skills needed for these positions but five skills are vital in becoming am effective forensic accountant. The most essential skill needed to become an effective forensic accountant is included in the description of the position. One has to be very analytical in their profession in order to become efficient and effective. Being a problem solver in any business is a trait that no business wants lacking from their employees, but in the field of finance and accounting, employers cannot successfully hire accountants without...
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...Abstract In combination between my experiences and life learning knowledge in a discussion topic of defining forensic accounting; I will be sharing with you my life knowledge in key specific areas within the fraud examination. I will also discuss my views of what is forensic accounting and its importance of this field. In addition; I will be delving in my definition of the fraud triangle and how I would utilize it in today cases. Going forward, I will explain the importance of the fraud triangle in fraud examination cases as well as I will give an explanation on my belief of how the fraud examination has an inevitable part today and along with how it works at the same point in time. I will finalize this discussion with the requirements needed to become a forensic accountant in the present state of Florida that I reside in. Definition of Forensic Accounting Forensic, a word that ignites the search for clues to find the perpetrator 's intent and truth in a criminal case. In the topic of forensic accounting, it brought to my attention of a T.V. show that I have recently watched a few nights ago. The show was called Forensic Files on the HLN network. The particular case was about on how investigators of a police department were working on a murder case. They were working with different specialized groups of examiners, doctors and specialists to help solve how the death of a man occurred. During the investigation...
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...The Past, Present, and Future of Forensic Accounting G. Stevenson Smith, PhD, CPA, CMA The CPA Journal Vol. 85 (LXXXV)/No. 3 March 2015 pp. 16-21 Today’s business society, including many large corporations as well as small and medium-sized businesses, has been part of the rapid technological advances the world is facing. Nowadays every business is operating via Internet as we are facing constant technological improvements throughout the past couple of decades. That being said, the potential of cybercrimes being committed drastically increased, as the cyber criminals have been able to break into the companies’ systems and manipulate and extract crucial data sets. This article is focusing on chronological development of the new area of accounting, forensic accounting. Forensic accounting is primarily focused on fraud protection, investigation of the security breaches and any other malicious activities against a company and its confidential data. At the very beginning of the twentieth century forensic accounting was not recognized as a separate practice area from auditing. As the passage of time, forensic accounting became a more distinct practice area. The development of computers and the internet caused forensic accounting to expand and become a separate field which deals with investigating activities and fraud protection rather than stating an opinion on whether or not the financial statements are in accordance with GAAP. Continually, auditors are focusing on the fair...
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...Regardless of the term accounting in forensic accounting, the discipline isn’t related to simply reading financial statements that are available to the public or dealing with other accounting issues; the usual accountants, portfolio managers, investment analysts, and etc. already do the regular financial tasks. Instead, forensic accounting scrutinizes the financial documents that are internal which aren’t readily available to the public; these documents are usually considered in litigation affairs. Generally, the field of accounting was undergoing a major overhaul; before the recent economic crisis that has devastated some parts of the western world, the accounting scandals regarding WorldCom and Enron pushed the field towards change. Accounting in general was put under scrutiny as a result of increasing white collar crime and the economic crisis pushed that process even faster and further. Ergo, there was an increasing need to have forensic accountants and the field in general needs proper development in its education system and practice for it to be effective. Overall, the laws of the developed world favor the ones who commit white collar crimes rather than a person robbing a convenience store with a gun. The problem with policymaking in the current democratic regimes is that it’s a paradox that allows white collar crimes like WorldCom and Enron to get away or only end up with a milder outcome than the robbers who may physically go out and do it with a gun. Of course, debating...
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...Business Research: Characteristics and Skills of the Forensic Accountant Ellen Lapid LeBlond RES/351 June 15, 2015 Dr. Jennie Wagner Business Research: Characteristics and Skills of the Forensic Accountant I have long been interested in Forensic Accounting, I find this field of accounting very fascinating and in this article the authors are researching what are the important specialized skills and technical abilities of Forensic Accountants. The authors conducted the business research by surveying three groups of individuals: (1) CPA’s who are working as forensic accountants, (2) lawyers who employ the services of forensic accountants, and (3) academics in the field, which are accounting professors. The survey was given to the three groups in a questionnaire format and it was divided into eight sections, which are demographics, areas of specialty for forensic accountant, traits and skills of forensic accountant, credentials for forensic accountants, protocols and abilities, effectiveness of forensic accountants, the need for additional specialization, and educational issues. The authors surveyed these particular groups because they wanted viewpoints from the forensic accountants, who provides the services and the lawyers, who employs their services. They also surveyed the academics because they develop the curricula of auditing and forensic accounting. The authors utilized an online survey program to field out the questionnaire to the three groups...
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...Submission of Research paper as a part of curricular activity. Forensic Accounting: A new dynamic approach to investigate fraud. SUBMITTED BY: Aniket Desai (12BBL016) Alakananda Duggirala (12BBL016) Rut Shah (12BBL051) SUBMITTED TO: Dr. Pranav Saraswat For the academic session July to December 2014 1 PREFACE This research project is carried out as a part of curricular activity for the course of Financial Audit, in semester V for the programme B.com LLB (Hons.). We have tried our best to do justice with the project and put it in black and white the research we've done in the last three months. Regards, Aniket Desai Alakananda Duggirala Rut Shah Date: 2th November, 2014 _______________________________ Signature of the researchers. 2 ACKNOWLEDGEMENT We owe a debt of gratitude to Dr (Mr.) Pranav Saraswat, the faculty for the course of Financial Audit, for his constant guidance and support which helped us to conceive this research project. It is also my duty to record my thankfulness to Dr. Atul Bhatt, the librarian of the Institute of law, Nirma University for keeping handy useful resources which helped me collect information and datas which was very important for my doctrinal research work. Finally, I would like to take this opportunity to thank my friends and colleagues for the support whenever required. Regards, Aniket Desai Alakananda Duggirala Rut Shah 3 DECLARATION We hereby declare that this piece of written work...
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... Forensic accounting is often involved with accounting, analyzing financial evidence, auditing, and investigating legal and financial proceedings. This paper will examine the most important five skills that a forensic accountant needs to possess and evaluate the need for each skill, describe the role of a forensic accountant within a courtroom, analyze the legal responsibility of a forensic accountant has while providing service to a business, and research two cases where forensic accountants have provided vital evidence in a case. Caleb Newquist touches on the subject of new forensic accountants, “Prospective forensic accountants can count on making many enemies in the course of their work and must be unhinged by the retaliation that normally follows uncovering fraud and other misconduct” (p.1). Their job description comprises of a wide range of duties in which each case they work require different skills and different ideas to become successful. Question 1: Determine the most important five skills that a forensic accountant needs to possess and evaluate the need for each skill The most important five skills that a forensic accountant needs to possess are analytical, creativity, organization or detailed oriented, persistence, and investigative skills. According to Luanne Kelchner editor for eHow, “Forensic accountants must have an analytical personality to perform well in the job. According to the American Institute of CPAs, a group of lawyers, CPAs and forensic accountants...
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...INDIVIDUAL PROJECT: Forensic Accountants: Fraud Busters 1 Individual Project: Forensic Accountants: Fraud Busters Pamela Turner Professor Ann Nelson Contemporary Business 508 February 13, 2013 Strayer University INDIVIDUAL PROJECT: Forensic Accountants: Fraud Busters 2 Individual Project: Forensic Accountants: Fraud Busters Determine the most important five skills that a forensic accountant needs to possess and evaluate the need for each skill. Be sure to include discussion regarding the relationship between the skill and its application to business operations. The age of information technology there is a definite rise in computer crimes, financial frauds, employee thefts and securities scams, insurance and bank frauds. The forensic accountant searches out fraud and criminal transactions in banking, corporate entity or from any other financial records within an organization. Forensic accountants take a more proactive, skeptical approach in examining books of accounting. The base of a forensic accountant is accounting knowledge. The dispersement of the knowledge of auditing, internal controls, risk assessment and fraud detection. There must be a basic or general understanding of the legal environment. The legal environment is essential in order to support the litigation. A strong set of communication skills both oral and written (Houck, 2006). Forensic accountant is the...
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...unethical aspects of creative accounting are rampant, the practice of forensic accounting (i.e., investigative accounting done by forensic accounting consultants to solve problems in courts) needs to be introduced and recognized. Forensic accounting’s “Financial Statement Alert” scrutinizes public companies’ questionable accounting practices, advises investors to examine carefully shareholder letters and management’s discussion and analysis of financials, and to try to read between the lines by looking at four basic areas: (i) extent of a company’s earnings from operations, as opposed to onetime occurrences, warning signs in the financial statements (e.g., shrinking profit margins, or fast growing inventories or receivables, or insufficient cash generation, etc.), (iii) changing accounting methods to more favorable one, or using accounting methods different from the ones the competitors use, and (iv) assets or liabilities on (or off) the balance sheet that might affect future earnings . Creative accounting has long been in practice in Bangladesh. Most of the companies in Bangladesh create accounts in an undesirable way to attract investors, while some of the companies practice it with a good motive of refining the accounting system. It is a good sign. Another healthy sign is that experts have started feeling that the unethical practice of creative accounting should be stopped by all means. To detect and prevent the pitfalls of creative accounting, punitive measures have to...
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