- Forensic accounting
Forensic accounting is the specialty practice area of
accountancythat 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. [cite book
last = Crumbley
first = D. Larry
coauthors = Lester E. Heitger, G. Stevenson Smith
authorlink = D. Larry Crumbley
title = Forensic and Investigative Accounting
date = 2005-08-05
isbn = 0808013653] All of the larger accounting firms, as well as many medium-sized and boutique firms, have specialist forensic accounting departments. Within these groups, there may be further sub-specializations: some forensic accountants may, for example, just specialize in
insuranceclaims, personal injuryclaims, fraud, construction, or royalty audits.
Engagements relating to civil disputes may fall into several categories: calculating and quantifying losses and economic damages, whether suffered through
tortor breach of contract; disagreements relating to company acquisitions—perhaps earn outs or breaches of warranties; and business valuation. Forensic accountants often assist in professional negligenceclaims where they are assessing and commenting on the work of other professionals.
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.
Forensic accountants may be involved in recovering proceeds of 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. In India there is a separate breed of forensic accountants called Certified Forensic Accounting Professionals.
Some forensic accountants are also
Certified Fraud Examiners, Certified Public Accountants, or Chartered Accountants.
Forensic accountants utilize an understanding of
business informationand financial reporting systems, accounting and auditing standards and procedures, evidencegathering and investigative techniques, and litigation processes and procedures to perform their work. Forensic accountants are also increasingly playing more proactive risk reduction roles by designing and performing extended procedures as part of the statutory audit, acting as advisers to audit committees, fraud deterrenceengagements, and assisting in investment analyst research.
As forensic accounting occasionally falls within the scope of private investigation, some states require specialized certifications and licenses to work within the field.Fact|date=May 2008 But in most cases, accountants can perform forensic audits without a private investigator license.
Journal of Forensic Accounting
Wikimedia Foundation. 2010.
Look at other dictionaries:
forensic accounting — ➔ accounting * * * forensic accounting UK US noun [U] ACCOUNTING ► the activity of examining financial records to find any illegal financial activity: »Internal forensic accounting investigations at 14 of its companies have revealed further… … Financial and business terms
Forensic Accounting — utilizes accounting, auditing, and investigative skills to conduct an examination into a company s financial statements. Thus, providing an accounting analysis that is suitable for court. Forensic accountants are trained to look beyond the… … Investment dictionary
forensic accounting — 1) Accounting undertaken in relation to proceedings in a court of law. In such circumstances accountants may be called on to provide expert investigations and evidence. 2) Accounting that set out to determine the nature of past business activity … Accounting dictionary
forensic accounting — 1) Accounting undertaken in relation to proceedings in a court of law. In such circumstances accountants may be called on to provide expert evidence. 2) Accounting that sets out to determine the nature of past business activity, often on the… … Big dictionary of business and management
forensic accounting — Fin the use of accounting records and documents in order to determine the legality or otherwise of past activities … The ultimate business dictionary
Certified Forensic Accounting Professional — Indiaforensic Center of Studies Formation 2005 Legal status Professional organization Purpose/focus Forensic Accounting Education Headquarters India Location Pune … Wikipedia
Journal of Forensic Accounting — Infobox Journal discipline = Accounting abbreviation = JFA website = http://www.edwardspub.com/journals/JFA/ publisher = R.T. Edwards, Inc. country = USA history = 2000 to present ISSN = 1524 5586The Journal of Forensic Accounting: Auditing,… … Wikipedia
Certified Bank Forensic Accounting — Indiaforensic Center of Studies Formation 2005 Legal status Professional organization Purpose/focus Forensic Accounting Education Headquarters India Location Pune … Wikipedia
accounting — ac‧coun‧ting [əˈkaʊntɪŋ] noun [uncountable] 1. ACCOUNTING JOBS the usual word for the profession of accountancy in the US 2. ACCOUNTING the work of keeping a company s financial records, recording its income and expenses, and its business deals:… … Financial and business terms
Accounting scandals — Accounting scandals, or corporate accounting scandals, are political and business scandals which arise with the disclosure of misdeeds by trusted executives of large public corporations. Such misdeeds typically involve complex methods for… … Wikipedia