In: Accounting
FORENSIC ACCOUNTING
Forensic accounting is one of the most developing fields of accounting where the skills of investigation, accounting and auditing are used together to conduct an examination about the entity and its financial background. In the current scenario this is of much importance because of the manipulation and fraud taking place in organisations. Forensic accounting provides analysis and interpretation of the accounting and business matters of entities that can be used in legal proceedings. One of the major application of forensic accounting is to establish damage claims of the insurance industry.
Forensic accountant helps in carrying out investigative
accounting and provides litigation support. In the current scenario
their services are of much demand in the following accounting
areas:
01. Helps in finding financial manipulation such as
embezzlement.
02. To help in dispute settlement like construction claims, breach
of contracts etc.
03. Criminal Investigation and cases relating to professional
negligence etc.
04. Helps in settling outgoing partner in a partnership
Thus, it can be concluded that forensic accounting has coped up with the requirements of accounting.