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Forensic accounting: a dynamic approach to investigate fraud

Author: 
Dr. T. Subash
Subject Area: 
Social Sciences and Humanities
Abstract: 

Forensic accounting has come into limelight due to rapid increase in financial frauds and white-collar crimes. The integration of accounting, auditing and investigative skills creates the specialty, known as forensic accounting. In fact, forensic accounting is the ‘specialty’ practice area of accounting that describes engagements, which result from actual or anticipated disputes or litigation. ‘Forensic’ means “suitable for use in a court of law,” and it is to that standard and potential outcome that forensic accountants generally have to work. It uses accounting, auditing, and investigative skills to conduct investigations, and thefts and frauds cases. No doubt, FA is listed among the top-20 careers of the future. Initially, forensic accountants were used by government agencies to uncover and investigate leading frauds. They became financial detectives; independent experts employed by management to uncover fraudulent financial reporting and misappropriated assets. In the current reporting environment, forensic accountants are in great demand for their accounting, auditing, legal, and investigative skills. They can play a vital role in coordinating company efforts to achieve a cohesive policy of ethical behavior within an organization. The article aims at finding the role and importance of forensic accounting and a forensic accountant in detecting frauds.

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