Scribd
Upload
144 views2 pages

Forensic Accounting:: Forensic Accounting, Forensic Accountancy or Financial Forensics Is The Specialty Practice Area

Forensic accounting involves the application of accounting skills and standards to matters that are expected to be used in legal proceedings. Forensic accountants analyze financial evidence to investigate instances of fraud, economic damages, and other legal and criminal matters. They often provide expert testimony in court and assist in matters involving bankruptcy, securities fraud, tax fraud, and other financial crimes. Forensic accountants hold certifications in fields like fraud examination, forensic auditing, and accounting to qualify them for this specialized practice area at the intersection of law and finance.

Uploaded by

Aanchal Singhal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
144 views2 pages

Forensic Accounting:: Forensic Accounting, Forensic Accountancy or Financial Forensics Is The Specialty Practice Area

Forensic accounting involves the application of accounting skills and standards to matters that are expected to be used in legal proceedings. Forensic accountants analyze financial evidence to investigate instances of fraud, economic damages, and other legal and criminal matters. They often provide expert testimony in court and assist in matters involving bankruptcy, securities fraud, tax fraud, and other financial crimes. Forensic accountants hold certifications in fields like fraud examination, forensic auditing, and accounting to qualify them for this specialized practice area at the intersection of law and finance.

Uploaded by

Aanchal Singhal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
You are on page 1/ 2

Forensic Accounting:

Forensic accounting, forensic accountancy or financial forensics is the specialty practice area
of accounting 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. All of the larger accounting firms, as well as many medium-sized and boutique
firms and various police and government agencies have specialist forensic accounting
departments. Within these groups, there may be further sub-specializations: some forensic
accountants may, for example, just specialize in insurance claims, personal
injury claims, fraud, anti-money-laundering, construction, or royalty audits.
Forensic accounting is defined as "the application of investigative and analytical skills for the
purpose of resolving financial issues in a manner that meets standards required by courts of law.
Forensic accountants apply special skills in accounting, auditing, finance, quantitative methods,
certain areas of the law, research and investigative skills to collect, analyze and evaluate
evidential matter and to interpret and communicate findings."
Financial forensic engagements may fall into several categories. For example:

 Economic damages calculations, whether suffered through tort or breach of contract;


 Post-acquisition disputes such as earnouts or breaches of warranties;
 Bankruptcy, insolvency, and reorganization;
 Securities fraud;
 Tax fraud;
 Money laundering;
 Business valuation; and
 Computer forensics/e-discovery.

Forensic Accountants often assist in professional negligence claims where they are assessing
and commenting on the work of other professionals. Forensic accountants are also engaged
in marital and family law of analyzing lifestyle for spousal support purposes, determining
income available for child support and equitable distribution.
Engagements relating to criminal matters typically arise in the aftermath of fraud. They
frequently involve the assessment of accounting systems and accounts presentation—in essence
assessing if the numbers reflect reality.
Some forensic accountants specialize in forensic analytics which is the procurement and analysis
of electronic data to reconstruct, detect, or otherwise support a claim of financial fraud. The main
steps in forensic analytics are (a) data collection, (b) data preparation, (c) data analysis, and (d)
reporting. For example, forensic analytics may be used to review an employee's purchasing card
activity to assess whether any of the purchases were diverted or divertible for personal use.
Forensic accountants, investigative accountants or expert accountants may be involved in
recovering proceeds of serious crime and in relation to confiscation proceedings concerning
actual or assumed proceeds of crime or money laundering. In the United Kingdom, relevant
legislation is contained in the Proceeds of Crime Act 2002. Forensic accountants typically hold
the following qualifications; Certified Forensic Accounting Professional [Certified Forensic
Auditors] (CFA - England & Wales) granted by the Forensic Auditors Certification Board of
England and Wales (FACB), Certified Fraud Examiners (CFE - US / International), Certificate
Course on Forensic Accounting and Fraud Detection (FAFD) by Institute of Chartered
Accountants of India (ICAI), Certified Public Accountants (CPA - US) with AICPA's [Certified
in Financial Forensics est. 2008] (CFF) Credentials, Chartered Accountants (CA -
Canada), Certified Management Accountants (CMA - Canada), Chartered Professional
Accountants (CPA - Canada), Chartered Certified Accountants (CCA - UK), or Certified
Forensic Investigation Professionals (CFIP). In India there is a separate breed of forensic
accountants called Certified Forensic Accounting Professionals.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy