Articles

What is Forensic Accounting?

by Hector Marlin Forensic Accountant &Fraud Examiner

Forensic Accounting

Before understanding forensic accounting, we have to understand what accounting is?

Articles and notation is a combination of two words, in accounting, writing is the meaning of articles, and notation means numbers. The writing of an event sequence into digits is called accounting.

The act of transcribing events into numbers to achieve a specific purpose is called accounting. Here events mean all actions in which transaction of money takes place. 

In simple expressions, accounting refers to the orderly accounting of financial transactions, to classify them, preparing the summary and presenting them in this way, So that they can be analyzed and interpreted. Summary in accounting refers to building a flat and the last accounts are the basis of analysis and interpretation, Under which trade account, Profit and loss account and position statement or balance sheet are prepared.

Example

In a business, a lot of items are bought, often sold. Keeps spending also earns, how much it cost, how much income, who owes, profit or loss, to get all this information, businessman keeps writing the happenings in his book. This writing process is called accounting. Hence accounting is the writing of business financial transactions.

What is Forensic?

Forensic means used or applied in the investigation and establishment of facts or evidence in a court of law.

So what is Forensic Accounting?

The number of corporate fraud has increased manifold. Stopping white-collar crime like tax evasion, accounting fraud, money laundering, window dressing is a big challenge. Forensic accounting can prove to be very effective for all this. Under this, analysis of financial documents and legal investigation happen. Also, background and verification, Anti-laundering, corporate intelligence services, Channel Partner Reviews, Intellectual property contract compliance works also happen. A forensic accountant performs all three roles, from detective to legal expert and accountant.

The Advantages of Forensic Accounting 

1 – Enhanced Brand Reputation and Authority

2 – Enhanced Efficiency.

3 – Reduced Exploitation Risk

4 – Reduced Legal Problems

5 - Minimised Losses


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About Hector Marlin Freshman   Forensic Accountant &Fraud Examiner

16 connections, 0 recommendations, 44 honor points.
Joined APSense since, September 25th, 2019, From Southport, Australia.

Created on Jan 22nd 2020 05:54. Viewed 178 times.

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