Page 167 - DCOM409_CONTEMPORARY_ACCOUNTING

Contemporary Accounting Neha Tikoo, Lovely Professional University

Notes Unit 14: Forensic Accounting

CONTENTS
Objectives
Introduction
14.1 Meaning and Concept of Forensic Accounting
14.2 Characteristics of Forensic Accounting
14.3 Forensic Accounting Engagement
14.4 Skill Requirement of Forensic Accountant

14.5 Scope of Forensic Accounting
14.6 Difference between Forensic Accountant and Auditors
14.7 Forensic Accounting Process
14.8 Financial Statements Frauds
14.9 Summary
14.10 Keywords
14.11 Review Questions
14.12 Further Readings

Objectives

After studying this unit, you will be able to:

Define forensic accounting;
Explain the characteristics of forensic accounting;
Identify the scope of forensic accounting;
Describe the financial statements frauds.

Introduction

The concept of forensic accounting is a rapidly growing area of accounting. The term forensic
accounting is concerned with the detection and prevention of business fraud and related white-
collar crimes. Forensic accounting is different from financial auditing. Financial auditing is
performed by certified charted accountants to check the regulations of financial statements of an
organisation. On the other hand forensic accounting is performed by an expert in the field to
verify information or to investigate frauds.

!
Caution Forensic accounting requires the expertise to identify that someone is lying or not
telling the whole truth.

14.1 Meaning and Concept of Forensic Accounting

Forensic accounting is the specialized practice area of accounting. The term ‘Forensic’ means
“suitable for use in Court,” and it is to that standard and potential outcome that forensic

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