Order Essay on Forensic Acccounting Until recently, detecting fraud was thought to be a part of the responsibility of the accountant. Fraud was something the internal or external auditors were expected to guard against by their periodic audits. This new area of accounting is known as forensic accounting. Within this area of accounting, there are two general categories of accountants or areas of practice.
Download this Term Paper in word format. The paper highlights the requisites and basic responsibilities of a forensic accountant. The paper also makes references on the special cases where forensic accountants have assisted in fraud detection and prevention. Overview of Forensic Accounting Forensic accounting is the specialty area of accounting used to train an individual to develop the special accounting skills to detect and prevent financial fraud.
The goal of forensic accountants is to fight financial crimes within Forensic accounting term paper contemporary business environment.
Typically, a forensic accountant assumes an important position in the investigating services, legal services and regulatory services within a financial environment.
In performing their roles, forensic accountants attempt to identify the gaps in accounting information, internal control and compliance of a business organization. In the light of the corporate scandals, especial the Enron Corporation and WorldCom scandals, that swept the financial communities in the s, it was generally revealed that many organizations issued false financial statements to exaggerate the company's earnings thereby increase the company's stock prices.
The increase in the corporate crimes within the business environment in the s made the roles forensic accountants to become important within a financial community.
However, a forensic accountant needs to possess the required skills to perform the forensic accounting duties effectively. Important Skills that a Forensic Accountant must possess Analytical skills are the important skills that a forensic accountant must possess.
A forensic accountant should be able to analyze the financial and electronic data to reconstruct and detect a financial fraud.
Analytical skills consist of data collectiondata preparation, data analysis and reporting. A forensic accountant must possess these skills to produce accurate information. Digabriele argues that a forensic accountant should possess the critical thinking skills, which include ability to think creatively and understand the tactics that a fraud penetrator uses in committing and concealing a financial crime.
More important, a forensic accountant should possess the advanced computer skills. Technological advancement has led to the increase in the demand for the service of a forensic accountant, because at presently, there has been a general increase in the number of corporate frauds.
In the age of computers, technology advancement has made it easier for corporate executives to perpetuate frauds and steal million of dollars without being detected. Thus, a forensic accounting investigator needs to possess an advanced knowledge of computer to extract evidence from the computer and information systems, which will be used to convict a penetrator.
Presently, businesses hire forensic accountants to examine the computer and document on a regular basis to detect any potential frauds. Thus, a forensic accountant could prevent a business failures as well as assisting a company to save million of dollars. Additionally, a forensic accountant should possess an investigatory skill.
A forensic accountant should be able to use theories, methods and patterns to detect a fraud abuse. Typically, a forensic accountant should understand the courtroom procedure as well as thorough understanding of the criminal and civil law. More importantly, a forensic accountant should also have experience in auditing, accounting, taxation, management, business operations, interpersonal relationships, and internal control.
Communication skill is another important skill that a forensic accountant must possess. Since a forensic accountant will need to communicate his findings to various parties, a forensic accountant should possess the communication skills, which include oral and written communication skills.
A forensic accountant should be able to present a report clearly, which people with little knowledge in accounting should be able to understand.
However, a forensic accountant is required to play an important role in the courtroom environment since a forensic accountant will need to testify in the courtroom if a misappropriation of funds is uncovered.
Role of a Forensic Accountant within a Courtroom Environment. Patent infringement, fraud, insurance, personal injury, and construction audits are some of the cases that forensic accountants are often called upon to investigate.
They are hired by the police departments to gather evidence for prosecution that will be presented in court.This new area of accounting is known as forensic accounting.
To fully understand the definition of forensic accounting, we can use parts of the definition of forensic medicine and accounting, both taken from Webster’s Dictionary, to produce a clear definition.
Forensic Accounting This Research Paper Forensic Accounting and other 64,+ term papers, college essay examples and free essays are available now on yunusemremert.com Autor: review • December 27, • Research Paper • 1, Words (7 Pages) • 1, Views4/4(1).
Excerpt from Term Paper: roles of forensic accountants in preventing and detecting fraud within a business community. The paper highlights the requisites and basic responsibilities of . Skillset for Forensic Accounting Term Paper . Forensic Accounting Skill Set for Forensic Accounting Forensic accounting is the search of evidence and financial facts of legal problems for a .
This new area of accounting is known as forensic accounting. To fully understand the definition of forensic accounting, we can use parts of the definition of forensic medicine and accounting, both taken from Webster’s Dictionary, to produce a clear definition.
Forensic accounting is the integration of accounting, investigative and analytical skills so as to resolve financial issues and provide litigation support where necessary.