Forensic Accounting Task

A Forensic Accounting Task is a forensics task that analyses accounting artifacts (to detect accounting fraud acts).

• AKA: Forensic Auditing, Investigative Auditing.
• Context:
  • It can range from being a Personal Fraud Forensic Accounting Task (for personal fraud) to being an Organizational Fraud Forensic Accounting Task (for organizational fraud).
  • It can be performed by a Forensic Accountant.
  • …
• Example(s):
  • Tax Fraud Forensics.
  • …
• Counter-Example(s):
  • Homicide Forensics.
• See: Control Fraud, Insurance Fraud, Marital and Family Law, Forensic Science, Claim (Legal), Personal Injury, Fraud, Money Laundering, Benford's Law.

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References

2016

• (Wikipedia, 2016) ⇒ http://wikipedia.org/wiki/forensic_accounting Retrieved:2016-2-22.
  • Forensic accounting, forensic accountancy or financial forensics is the specialty practice area of accounting that describes engagements that 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. Forensic accountants, also referred to as forensic auditors or investigative auditors, often have to give expert evidence at the eventual trial. All of the larger accounting firms, as well as many medium-sized and boutique firms and various Police and Government agencies have specialist forensic accounting departments. Within these groups, there may be further sub-specializations: some forensic accountants may, for example, just specialize in insurance claims, personal injury claims, fraud, Anti-Money Laundering, construction, or royalty audits.

    Financial forensic engagements may fall into several categories. For example:

    • Economic damages calculations, whether suffered through tort or breach of contract;
    • Post-acquisition disputes such as earnouts or breaches of warranties;
    • Bankruptcy, insolvency, and reorganization;
    • Securities fraud;
    • Tax fraud;
    • Money laundering;
    • Business valuation; and
    • Computer forensics/e-discovery.
  • Forensic accountants often assist in professional negligence claims where they are assessing and commenting on the work of other professionals. Forensic accountants are also engaged in marital and family law of analyzing lifestyle for spousal support purposes, determining income available for child support and equitable distribution.

    Engagements relating to criminal matters typically arise in the aftermath of fraud. They frequently involve the assessment of accounting systems and accounts presentation — in essence assessing if the numbers reflect reality.

    Some forensic accountants specialize in forensic analytics which is the procurement and analysis of electronic data to reconstruct, detect, or otherwise support a claim of financial fraud. The main steps in forensic analytics are (a) data collection, (b) data preparation, (c) data analysis, and (d) reporting. For example, forensic analytics may be used to review an employee's purchasing card activity to assess whether any of the purchases were diverted or divertible for personal use.

2015

• http://www.forensicaccounting.com/one.htm
  • QUOTE: The integration of accounting, auditing and investigative skills yields the speciality known as Forensic Accounting.
    “Forensic", according to the Webster's Dictionary means, "Belonging to, used in or suitable to courts of judicature or to public discussion and debate."
    “Forensic Accounting", provides an accounting analysis that is suitable to the court which will form the basis for discussion, debate and ultimately dispute resolution.
    Forensic Accounting encompasses both Litigation Support and Investigative Accounting.

    As Forensic Accountants, we utilize accounting, auditing and investigative skills when conducting an investigation. Equally critical is our ability to respond immediately and to communicate financial information clearly and concisely in a courtroom setting.

    Forensic Accountants are trained to look beyond the numbers and deal with the business reality of the situation.

    Other Terminology: Forensic Investigation, Forensic Audit, Internal Audit, External Audit.

2016

• http://www.acfe.com/career-path-forensic-accountant.aspx
  • QUOTE: Forensic Accountants combine their accounting knowledge with investigative skills in various litigation support and investigative accounting settings. Forensic Accountants are employed by public accounting firms’ forensic accounting divisions; by consulting firms specializing in risk consulting and forensic accounting services; or by lawyers, law enforcement agencies, insurance companies, government organizations or financial institutions. Due to heightened awareness and growing intolerance of fraudulent activity, demand for Forensic Accountants is rapidly increasing. …

    … It is important to plan and conduct an honest self-assessment of your knowledge, skills and abilities. In particular, employers are looking for:

  • Knowledge.
    • White-collar crime.
    • Money laundering.
    • Insurance claims.
    • GAAP or GAAS violations.
    • Telemarketing fraud.
    • Check kiting.
    • Contract and procurement fraud.
    • Asset misappropriation.
    • Securities fraud.
    • Financial statement fraud.
    • Bankruptcy fraud.
    • Credit card fraud.
    • Embezzlement.
    • Financial data analysis.
    • Evidence integrity analysis.
    • Computer application design.
    • Damage assessment.
    • Tracing illicit funds.
    • Locating hidden assets.
    • Due diligence reviews.
    • Forensic intelligence gathering.
    • Accounting procedures.
    • Legal system and its procedures.
    • Regression analysis.
    • Computer applications.
  • Skills.
    • Writing reports.
    • Testifying as an expert witness.
  • Abilities.
    • Interpersonal communication.
    • Verbal communication.
    • Written communication.
    • Attention to detail.
    • Analytical.
    • Integrity.
    • Objectivity.
    • Independence.
    • Credibility.

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