| Forensic accounting is one of the newly identified | | | | policy. The agent keeps the proceeds from the |
| types of accounting jobs available. A forensic | | | | loan and the customer can remain unaware of it |
| accountant is either an internal or external auditor | | | | for months or even years. |
| who is brought in to investigate a case of fraud, | | | | Insurance and personal injury claims - Many people |
| bankruptcy or other legal conflict. He or she audits | | | | falsify claims they make to insurance companies. |
| the situation and comes to a conclusion regarding | | | | This is another big area needing forensic |
| the wrong doings and amount of loss involved. | | | | accounting techniques. |
| The auditor composes a report, which is often | | | | Construction audits - Here, forensic accounting is |
| used as evidence in a court case. The forensic | | | | used to make sure construction is done using the |
| accountant may even testify personally. | | | | quality of components that was called for. |
| Forensic accounting has arisen from the vast | | | | Royalty audits - In any situation where a worker, |
| amount of scandals wreaking havoc in the | | | | usually a performer, is owed royalties for the |
| business world the last few years. Enron and | | | | showing or airing of his work, a forensic |
| WorldCom caused severe loss for many owners | | | | accountant is often brought in to make sure he is |
| and employees. The accounting profession heard | | | | being paid everything that is owed. |
| the call and has made several mid-course | | | | SEC inspections - Wall Street scandals abound |
| adjustments to help assure these crimes won't | | | | these days and forensic accountants assist in |
| happen as easily ever again. | | | | following the financial information to find the |
| COMMON PROJECTS | | | | wrongdoers. |
| Forensic accounting is a specialized form of | | | | Matrimonial disputes - Divorces settlements often |
| auditing. Regular audits are required by the SEC or | | | | use the skills of a forensic accountant to assure |
| the company itself to assure compliance with | | | | both parties get a fair settlement. |
| accounting standards or company policy and | | | | COMPETENCIES |
| procedures. | | | | To be good in Forensic Accounting, more than |
| Forensic audits, on the other hand, are done | | | | just an accounting degree is required. The forensic |
| because something happened that needs further | | | | accountant uses more than just his spreadsheet |
| investigation. It is not a matter of routine. Here | | | | and accounting skills. He or she must be willing and |
| are some examples of projects that may rely on | | | | able to deal with the totality of the particular |
| forensic audit procedures: | | | | business situation under investigation. This includes |
| Agent fraud - A descriptive and frequent example | | | | analyzing the financial evidence, reporting it in |
| is with insurance agents. An insurance agent has a | | | | various traditional and technical ways and perhaps |
| lot of access to personal information of his | | | | even testifying in court. All delivered documents |
| customers. A common fraud scheme is for an | | | | must be in such a format as to be used as court |
| insurance agent to fake the application for his | | | | evidence. Therefore, the forensic accountant |
| customer to take out a loan on the insurance | | | | must be familiar with legal terms and procedures. |