A Brief Description of Forensic Accounting Cases
The need for the forensic accounting arise because it was observed that many of the organizations for years all together were found to be engaged in malpractices and also financial irregularities. Once considered to be one of the most boring of field, accounting suddenly acquired a new look and a new tenor. But still, the domain of forensic accounting is very vast in scope and is also considered to be the most responsible as well as a vital field as far as keeping a check on the financial discipline of the companies and other organizations and in many cases even individuals is concerned.
There could be many reasons behind utilizing the services of a forensic accountant. There could have been some economic damages due to the misrepresentation of the financial records, some kind of a disagreement while company acquisitions-like business valuation, breach of warranties. Forensic accounting cases might also arise in situations like professional negligence. The forensic accounting cases many times arise when there is a need of checking whether the numbers as presented in the reports are presenting the reality.
Some of the most high profile cases that required the services of the forensic accountants were the Compton Community College School District Audit, the city of Cape Coral Utilities Expansion, and the Los Gatos Union Elementary School District Audit. All of these cases fell under the category of forensic accounting cases as it was really beyond the scope as well as the abilities of normal accounting procedures to get to the bottom of the financial irregularities that were taking place.
The significance of forensic accounting is increasing more and more. In the present age when the technology has become all too prevalent, the role of a forensic accountant is also increasing day by day. In the current scenario there are people and organizations that do engage in malpractices and are just bold enough to indulge in preparing fraud financial reports to get maximum profits with minimum inputs. Many of such cases have resulted in tremendous losses not only to the organization that they were working for but also to the people who had invested in these firms. The forensic accounting is playing a big role in detecting as well as bringing to law the people and firms that are responsible.