Forensic accounting
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Forensic accounting is the specialty practice area of accounting that describes engagements which result from real or anticipated civil or criminal litigation.
Broadly speaking, engagements relating to civil litigation fall into one of three categories: economic damages, assurance as to fraud in accounts or inventories or the presentation thereof, and business valuation.
Engagements relating to criminal litigation typically concern establishing whether a crime appears to have taken place and quantifying the amounts involved. At a later stage, 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 UK, relevant legislation is contained in the Proceeds of Crime Act 2002.
Forensic accountants utilize an understanding of business information and financial reporting systems, accounting and auditing standards and procedures, evidence gathering 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 advisors to audit committees, and assisting in investment analyst research.
See also
- Certified Fraud Examiner (CFE)
External links
- [Journal of Forensic Accounting]
- [Sequence Inc. Forensic Accounting]
- [Indiaforensic Research Foundation]
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