What Forensic Accountancy is all About?
Forensic accountancy is all about utilizing accounting, auditing, and investigative skills to assist in legal matters. The accountant specializing in this domain can keep a look at the financials of a situation and figure out enough details to keep fraudsters at bay.
Forensic accounting has been around for years and in today’s world this profession is in high demand because fraud is becoming an ever-increasing problem. With the advent of technology, people committing fraud has increased on a huge scale and people can easily escape. Organizations face huge loss due to fraud. Forensic accountancy presents the best ways to stop fraudsters in their tracks and recover the huge loss.
Forensic accountancy is a branch of accountancy that focuses on two key areas, litigation support and investigation. Litigation support involves figuring out the amount lost by parties in a legal dispute, and testifying as an expert witness in trials. The accountants use their knowledge in the field of crime fighting and financial measures to settle disputes between divorcees, to convict criminals who have stolen assets from companies or other people. The second main component is investigation that requires thorough knowledge of financial measures. The ability to think and analyze help people with accounting backgrounds take financial measures to find facts important for catching criminals. Forensic accountancy enables forensic accountants determine whether or not things like employee theft, securities fraud, identity theft, or insurance fraud have occurred. Detecting these types of fraud is crucial to get back lost money or other assets, and prosecuting those that have committed the criminal act of fraud.
To combat growing fraud, forensic accountants are playing a pivotal role in every sphere of life. Government agencies like the FBI, the Internal Revenue Service, and the Bureau of Alcohol, Tobacco also employ forensic accountants. These accountants are employed to uncover hidden assets, to track down interior frauds that normal auditors might not be able to locate.