| A lot of people do not really know what forensic | | | | to criminal financial transactions in the company, i.e. |
| accounting is about. Forensics accounting is actually | | | | money laundering. Most of the time, they also get |
| the practice of utilizing accounting, auditing, and | | | | involved in investigating securities fraud, contract |
| investigative skills to conduct examination into a | | | | disputes and other illegal business activities such as |
| company's financial statements in legal matters. | | | | bribery and embezzlement. |
| Forensics Accounting consists of three main | | | | Forensic accountants utilize their knowledge in |
| areas, for example, litigation support, investigation | | | | accounting and finance as well as company law |
| and dispute resolution. Litigation support involves | | | | and commercial law in their daily routine. They are |
| the factual presentation of financial issues related | | | | also well equipped with all the updated business |
| to existing or pending litigation. In such | | | | information, government legislation, financial |
| circumstances, the forensic accounting | | | | reporting systems, accounting and auditing |
| professionals are normally responsible to quantify | | | | standards, and litigation processes and procedures |
| the damages sustained by the parties involved in | | | | when they are carrying out their task. |
| legal disputes before these cases are brought to | | | | Furthermore, besides the required knowledge, it is |
| the court. | | | | essential for them to have two important skills, |
| Investigation comes in when criminal matters | | | | for example, investigative techniques as well as |
| have occurred, such as falsification of financial | | | | evidence gathering skills in performing their task. |
| statements, internal theft, securities fraud, | | | | Forensic accountants have played an important |
| insurance fraud, bribery, and so on and so forth. | | | | role in assisting the government as well as the |
| Further actions are taken after detailed | | | | public to detect accounting scandals and financial |
| investigation is conducted. | | | | crimes caused by individuals, companies and |
| On the other hand, when a dispute has been | | | | organized crime networks. Unlike accountants and |
| brought to the court, the forensic accountant | | | | auditors, when forensic accountants conduct |
| may act as an expert witness for the related | | | | audits, they are actively looking for signs of fraud |
| matter. They will also be responsible for preparing | | | | and they use their investigative skills to determine |
| necessary evidence. Forensic accountants are | | | | whether a business activity or a financial |
| specialized accountants. They can also be called | | | | transaction is illegal. |
| forensic auditors or investigative auditors. | | | | Forensic accountants are part of the extension of |
| They are specialized in investigating and | | | | the legal team and they are responsible for |
| interpreting white collar crimes which always relate | | | | preparing and reviewing financial evidence. |