Forensic Accounting

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The word “Forensics” is usually related to things like fingerprints, DNA tests etc. but actually forensics is defined as the “study of evidence discovered at a crime scene and used in a court of law.” And surprisingly, the term is even relevant in the world of accounting and finances. With the growing competition and technology, people have more opportunities for fraud and manipulations. Thus, the world of accounting has been branched to a specialized part, i.e. Forensic Accounting. Forensic Accounting is nothing but different accounting analyses and study procedures that can be used and debated in the court for further resolution and clarifications. This normally includes two main operations, i.e. investigations and litigation support.

Companies now days appoint special individual at a post known as forensic accountant. Their main job is to look, study and analyze the fraudulent, as well as the non-fraudulent activities or characteristics involved in the books or the different accounting records. In the case of any dispute or conflict, these accountants analyze the financial evidence, develop different verification applications and also simultaneously help in the legal proceedings and trails. He is involved in to numerous different kinds of assignments, such as criminal investigations, shareholders’ and partnership disputes, business interruption, employee fraud investigations and business economic losses. The forensic accountant in basic should have strong financial and accounting knowledge, in addition to the ability of think out of box because only then will he be able to closely study the financial transactions for detecting even the smallest of errors or discrepancies.

I am sure that the above presented study of the concept and working activities of forensic accounting and accountant respectively has demonstrated the significance of the practice. It is not only important for fighting cases in the court against the criminal or illegal activities, it is in fact an extremely beneficial approach, which can be employed and incorporated by the firms for the detection and prevention of fraud to a great extent. And all these benefits add up to a major gain, which is the basic cause of existence of most of the firms and that is monetary savings.

Hence, all these advantages and requirements have highly increased the demand for a higher number of professionally trained professionals specializing in this field. Thus, all the commerce graduates who are looking for a new and different field of accounting related work can opt for this profession, as it is challenging, interesting and different. All you require is a knack for law, good mathematical skills, good communication skills and ability to notice the minutest details.

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