Question

How valuable is the forensic accountant to legal counsel when preparing for a legal dispute? What roles do they play

Answer 1

Solution:

Q1: What is Forensic Accounting?

Forensic accounting is one of the emerging branches of accounting which is initiated where the role of accountant and even auditor ends. Once the financial books are maintained by an accountant and examined by the auditor. In case of any discrepancy or variation, the forensic accountants are called to analyze and examine the facts or situation to know that it is happened due to mistake, error or fraud etc.

Q2: How valuable is the forensic accountant to legal counsel when preparing for a legal dispute?

(1)          Forensic accounting also helps in exploring the possibilities as well as evidence of fraud for the right action in the court later on.

(2)          Forensic accounting also plays a crucial role in tracking the propagator of fraud and manipulations in the books of accounts.

(3)          Forensic accounting are more efficient than internal auditing on grounds of many valid reasons like internal auditors are bounded by internal pressure by superior or senior management and may not give objective judgment and evaluation

(4)          Forensic accounting is more efficient than external auditing on grounds of many valid reasons like External auditors confine themselves to look at the financial numbers in the accounting books but the forensic auditors look beyond the numbers.

(5)          Forensic accounting is more comprehensive in terms of objective and goals. It is not confined to check the true state of financial figures but also to examine the possibility of fraud or crime at every minor or major step.

(6)          Forensic accounting seems to provide the needed solution to the problem of fraud and financial mismanagement in the business organizations and it can be treated as a more competent concept against other forms of auditing when it comes to exploring right measures against fraud.