Abstract
Research has revealed that we have different types of accounting and forensic accounting is one of it. Forensic accounting is a form of accounting or financial investigation. This chapter discussed the overview of forensic accounting, history of forensic accounting, functions of a forensic accountant, Forensic Accounting for Criminal Investigation, forensic accounting services, Methods to a Forensic Accounting Assignment, literature review on forensic accounting, fraud (overview), the need for forensic accounting, skill of forensic accounting and lastly the concept of fraud.
TopIntroduction
Globally, Forensic Accounting is coming to be one of the well-fortified expanded domain in the accounting career (Aribaba, 2013). In this chapter, the meaning of Forensic accounting will be examined. This will help create awareness of the significant use of a forensic accountant. Therefore, the objective of this chapter is to discuss the significance of forensic accounting in organizations and industries and the importance of forensic accountant in the detection and investigation of criminal activities such as fraud in an establishment. This chapter will be an eye-opener for the public on how forensic accounting can be used to crumb fraud and criminal activities in our organization both locally and globally.
This study intends to evaluate the recognition and avoidance of fraudulent acts or fraud. The following are the objectives to achieve the aim of the study:
- 1)
Examine the role of a forensic accountant in fraud recognition and avoidance
- 2)
Examine and discuss the techniques that can be utilized in forensic accounting for detecting fraud or criminal activities.
- 3)
Examine and discuss the concept of Fraud and forensic accounting
- 4)
Discuss the relationship between forensic accounting
Research Questions
- 1.
To what degree is the techniques of forensic accounting for revealing fraud or financial criminal activity reliable and effective.
- 2.
To what degree do the existence of forensic accountant relevant in detecting and avoiding fraud or fraudulent activities.
- 3.
To what degree do the existence of forensic accounting counteract criminal acts such as fraud
Background
Meaning of Forensic Accounting
Forensic Accounting (FA) is defined as an ability, skill or knowledge acquired and applied to utilize accounting, auditing. It provides an accounting analysis suitable to be used in legal proceedings. Forensic accounting is frequently used in fraud and embezzlement cases to explain the nature of financial crime in court (Investopedia, 2019). Forensic Accounting necessitates the use of discovering sums of money, asset discovery and recuperation as well as due to meticulousness analyses. FA is also understood as an amalgamation of accounting and investigation practices to ascertain economic corruptions and one of its vital roles is to elucidate the kind of monetary misconduct to the magistrates.
History of Forensic Accounting
The significance of Forensic accounting set out following the year 2008, at that time when doubtful loaning exercises were in place then the massive Bernie Madoff Ponzi system make public extensive carelessness or misdeed and fraud in U. S. financial establishments (Morgan, 2017).
Key Terms in this Chapter
Court: This is referred to as a gathering to handle legal activities. It is also a territory in which a judges, lawyers, and people convene.
Forensic Accounting: This is defined as the practice involving secretarial abilities to scrutinise fraud or any form of criminal acts for use in legal court.
Forensic: This is used in investigation and consideration of proofs or indication in a law court.
Data Mining: Data mining refers to as data treatment by means of advanced data inspection competence and statistical procedures to ascertain patterns and associations in an already existing large database to uncover novel significance in data.
Fraud: The refers to something or an individual that consciously cheat, pretend, or trick with the aim of making profit as a benefit and this act can cause a harm to the victim.
Criminal: This is an individual who responsible for a misconduct or an unlawful act and had been legitimately declared guilty of the offence.
Financial Statement: This is a record presenting transaction’s credits and debits.
Forensic Accountant: This is an individual that uses secretarial abilities in scrutinising fraud or any form of criminal acts for use in legal court.
Criminal Acts: This is referred to an illegal or unlawful attitude of an offender or criminal.
Criminal Investigation: This is referred to as the inspection or consideration of an offence or misconduct that is illegal or unlawful perpetrated by an individual.