Question

1 Discuss the roles that forensic accountants play in collecting evidence?

2 Discuss forensic science in and its application in forensic accounting?

Answer 1

1. The Roles that forensic accountant play in collecting evidence

Forensic accounting is the practice of utilizing accounting, auditing and investigative skills to assist in legal matters.

The role of a forensic accountant is to determine the missing money and recovery of it. During hearings, they can also present reports of their financial findings as evidence, where they often testify as expert witnesses. In public accounting and consulting firms, law firms, law enforcement agencies, and insurance companies, this work serves an important purpose. Some accountants are working on a wider case of fraud, like those working in law enforcement agencies or law firms. Typically, accountants working in more specific areas, such as public accounting or insurance, focus on specific types of fraud, such as fraud in insurance.

In collecting evidence, the forensic accountant plays an important role. The reason for this is because she understands business, information and financial systems well. In addition, the forensic accountant has good accounting and auditing knowledge and is therefore most equipped to gather financial evidence. He is trained to gather evidence as the forensic accountant is trained in investigative techniques. Forensic accountant and other review team members will undertake to meet the requirements of the review plan with the goal of developing data on the suspected fraud situation.

The forensic accountant who uses the experience of all other members of the review team will outline the analysis of the evidence in written report form, stating the facts and findings of the investigation.

2. Forensic science in and its application in forensic accounting

Forensic Science refers to applying physical & natural science principles & methods to examining criminal / civil legal issues. Forensic Science & Forensic Accounting is based on nearly the same methodology, but the topic they deal with is quite different. Forensic Science is concerned with physical evidence which is used to link suspects & victims. Forensic Science has many sub areas like forensic anthropology(the identification of skeltonzed human),forensic DNA(testing of parenthood of a particular child), entomology(examination of insects to determine time & location of death), forensic pathology (investigating the causes of sudden/unexpected death), forensic deontology (identifying persons through the analysis of teeth & accompanying dental prosthetics), forensic psychiatry (the study of legal aspects of human behaviour), forensic toxicology (study of effect of drugs & poisons on human body)

But forensic accounting deals with phenomena such as economic / financial. Forensic accounting is required when there is a dispute over accounting issues. Forensic accounting reconstructs the specifics of past financial transactions and attempts to find out about the economic reality. Forensic scientists deal with violent crimes, but non-violent white-collar crimes are handled by forensic accountants.