forensic accounting assignment help

forensic accounting assignment help

Forensic Accounting: Uncovering Financial Fraud

1. Introduction to Forensic Accounting

Often when people cheat the government by not reporting all of their income, the criminally oriented person will state that this is victimless because the government does not need the money to provide necessary services. Fraud examiners have determined, however, that the revenue losses accumulate over time to such massive numbers that they do result in a loss to all of us. If everyone paid their tax due, not only would this have a significant impact on investment in development projects, but there would also be sufficient funds to support societal infrastructure. For example, many of the highways in the United States are deteriorating as are other aspects of infrastructure because there is not sufficient money to pay for the required maintenance and improvement.

Forensic accounting is the specialty practice area of accounting that investigates whether what is reflected in the financial records is a result of error or fraud. Once the issue is determined, it is necessary to follow up on what the auditors do to uncover which individual(s) committed the fraud. The process requires both accounting knowledge and an understanding of human behavior. Forensic accountants can also assist individuals in recovering pictures, emails, and texts that certain people may have erased in order to uncover evidence of fraud, embezzlement, or other wrongdoing. This is possible, of course, only with the proper authority. Forensic accountants can also reconstruct financial records that have been destroyed or altered, determine what assets are missing, and work with attorneys to help people who are innocent of crimes bring these facts to light.

2. Techniques and Tools in Forensic Accounting

Small and medium-sized enterprises (SMEs) in different industries are generally considered to lack the measurement systems that can effectively evaluate the company. They generally believe that periods, high building maintenance, innovation and implementation of incentives for new product development effectiveness and overall cheap, eliminate all uncertainty problems, solve the future at the same time, helpful to compromise scarce resources, and ultimate competitive advantage. Is this true for SMEs? Of course not. Perhaps it is tragic that, in today’s competitive environment, it is still necessary to prove that the provision of continuous innovation and continuous learning and learning is an important direction for economic growth. Statistics support the belief of forensics. Only a few studies have explored the issue of generating mechanisms related to other fashions. If they inappropriately measure the members’ perceptions and attitudes of customer feedback, they may be inaccurate or differently scientifically determined depending on their personal and organizational levels. Finally, organizations must use industry stakeholders to provide value creation components. To prevent all this from happening, decadent accountants need to mail through the PCA.

Belangee, a forensic certified public accountant, firmly believes that the importance of fraud cannot be underestimated and that it is crucial in the business field. Accountants can help many companies before it is too late by providing industry, government, and regulatory observation and identifying significant industries as business owners. Forensic accounting is a combination of accounting and research methodologies that can be used in the courts. The primary methodology used in this research is alcoholic methodology. This paper also discusses some other methodologies and consultants that forensic accounting should use, that is in the context of the end result or expert witness testimony. Expert testimony is crucial in forensic accounting. Many times, the forensic certification certificate accountant knows that the people involved in the case can happen when the expert lectures are famous.

3. Investigating Financial Fraud Cases

In the Republic of Turkey, the obligation to have a legal requirement known as the Chief Accountant and Deputy Attorney’s Act, the need for independent auditing of the corporations and entities subject to independent auditing in the Capital Markets Board, started on 1 July 2002. Forensic accounting is the review of the advisability which reveals financial problems without fraud and provides solid proof that falsified documents are incorruptible without the need for forensics. Moreover, forensic accounting is a combined method involving studies such as both the review of the compliance with the principles of accounting and auditing, the determination of individuals and auditors responsible for the deficiencies detected, and the assessment of the legal consequences of the deficiencies.

The historical background of forensic accounting, as accounting’s origins announce, shows the role of accountants in examining and testifying to fraudulently altered or stolen records and documents. However, the title and businesses of practicing accountants and how they are generally perceived depend on political, electronic, cultural, and commercial conditions. The longstanding institutions usually enjoy wide acknowledgment in the chosen area. Forensic accounting is not a novel area, but it has been increasing in demand since the recent economic crises and fraud scandals. Its importance is now well recognized, and the forensic accounting professional investigates and tests the money flows and related activities of people who are holders of a position of responsibility. Therefore, the findings of their widespread work are usually used as evidence in court proceedings.

4. Legal and Ethical Considerations in Forensic Accounting

Sarbanes-Oxley’s Act mainly applies to persons with reporting responsibilities in relation to financial statements filed with the U.S. SEC, public companies, underwriters, registered public accounting firms, and persons associated with such firms as a result of the Act. Public companies are prohibited from engaging auditors who provide “non-audit services,” for example, bookkeeping services for fiscal reporting systems of companies audited by that firm, appraisal or valuation of assets, and management functions or human resources. Also addressed by the Act is the requirement that management and board members adhere to corporate responsibilities of honesty, confidentiality, integrity, fair dealings, and full revelation as part of the company’s general disclosure process.

At the same time, a forensic accountant is doing financial detective work, certain legal and ethical considerations must be addressed. Since forensic accountants are often asked to prepare analyses for litigation purposes, one must ensure that the preparation of these analyses does not cross into the realm of legal work, according to the state statutes on practice privileges for accountants. In addition, these analyses could infringe on anti-fraud services prohibited by the Sarbanes-Oxley Act of 2002 – Public Law 107-204, passed in July 2002 in response to Congress’s perception of auditors as guardians of the public interest. There is potential for further litigation expected as this act is enforced and regulated further, and much effective commentary continues to be contemplated.

5. Role of Forensic Accountants in Preventing and Detecting Fraud

Privatizing defaults to government financial assistance could threaten continued operation of a business. Causative factors suggest additional areas of concern in the prevention of fraud. Preventive measures extend past mere absorption of a standardized corporate governance procedure or introduction of a more expansive system of internal control. Forensic accounting investigation results reveal a corporate culture issue that encourages additional exposure to fraudulent behavior by management.

Forensic accountants spend extensive time expanding knowledge, skills, and methods to bring forth an evidence-based resuscitation of the crime scene within financial records. Proper forensic accounting analysis ensures more accurate results and builds confidence for a jury. The forensic accounting specialist is also tasked with determining motivations behind missteps of public trust. The public wants to know that measures are in place to deter or ensure monetary redress for the guilty. Thus, inclusion of forensic accounting students in a review of many fraud-related court cases is imperative to ensure the skills needed to defeat corporate scams exist.

Corporate fraud relies heavily on secrecy and deception that masks criminal activities long enough to result in substantial financial loss. Extensive work relies on proving deception, tracing criminal activities, and subsequent recovery of hidden or misspent monetary assets.

While detecting and preventing fraud is the responsibility of every accounting professional, forensic accountants specifically devote their careers to expanding knowledge, skills, and methods. The forensic accountant is expected to evolve with these dynamic needs of the changing thought process and updated skill sets. In this way, establishing a higher level of quality to guard against tomorrow’s unknown threats becomes realistic and beneficial to all stakeholders.