Basics of Forensic Accounting.. When a business experiences severe economic losses or faces bankruptcy, a forensic accountant can play a valuable role in the recovery process. Failing businesses hire forensic accountants to look at their financial situations and determine if any foul play was involved in their economic losses.
Forensic accounting utilizes accounting, auditing and investigative skills to conduct an examination into a company's financial statements. Thus, forensic accounting provides an accounting.
Over the course of the last five years, forensic accounting has seen an approximate 7.1 percent annual growth, according to IBISWorld’s market research report. One of the most famous forensic accounting cases started with Al Capone’s tax evasion. Since then, the opportunities for forensic accountants have expanded significantly.
Forensic accounting services generally involve the application of specialized knowledge and investigative skills possessed by CPAs to collect, analyze, and evaluate evidential matter and to interpret and communicate findings in the courtroom, boardroom, or other legal or administrative venue.
Strong forensic accounting programs will include extensive legal study, and business schools will actually work in an interdisciplinary way with their university's law school. It's essential that forensic accountants understand the precepts and legal definitions that pertain to both civil and criminal court proceedings, as these can differ significantly from one another.
Forensic services are usually divided into two subsets: fraud investigation (financial statement fraud, corporate embezzlement, bribery, and insurance fraud) and litigation support services (contract disputes between corporations, shareholder divorces, intellectual property infringement, business insurance claims, bankruptcy consulting, business valuation, and family law issues).
The Fundamentals of Forensic Accounting Certificate Program (21.5 CPE credits) covers those areas representative of the AICPA's Body of Knowledge in the financial forensics area.
From Forensic Accounting For Dummies. By Frimette Kass-Shraibman, Vijay S. Sampath. Most of the time, forensic accounting is used when someone commits fraud. For this reason, forensic accountants are often referred to as fraud investigators or fraud examiners. Fraud takes many forms, but no matter how you look at it, fraud is theft; it is profiting by deceit or trickery and involves the theft.