The Importance of Forensic Accounting Report
The term “forensic” actually means appropriate to be used in a court of law. The branch of accountancy that deals with the frauds or other irregularities in the matters of finance is known as the Forensic Accounting and the accounting professional specializing in this area are known as Forensic accountants. Some other terms that are used to describe forensic accountants are Certified Fraud examiners, Chartered Accountants, Certified Public Accountants, Certified Forensic Accounting professionals.
These professionals prepare their forensic accounting reports while utilizing their knowledge of financial reporting systems, business information, auditing standards as well as procedures, evidence gathering, investigative techniques, and litigation processes as well as procedures. The forensic reports prepared by the forensic accountants play a very important role during statutory audit, fraud deterrence engagements, while advising the audit committees, and also during the investment analyst research.
Although the forensic accountants do not give their opinions, the financial accounting reports prepared by them give conclusive answers to the questions like Who, What, Where, Why, and how. The advancement in technology has allowed the fraudsters to carry out their agendas more sophisticatedly and covertly. As a result the forensic reports prepared by the forensic accountants rely heavily by using latest technologies and softwares in order to keep up or rather stay ahead of the criminals.
The forensic accountants generally come into the picture while calculating as well as quantifying economic damages, losses, because of a breach of contract, disagreements related to the company acquisitions, or business valuation. The forensic accounting reports also helps in the criminal matters after a fraud has been discovered. These forensic accounting reports help in checking the accounts presentation, and accounting systems in determining the matching of the numbers with the reality.
The forensic reports prepared by the forensic accountants play a major role in keeping the system clean and transparent. These reports go a long way in determining whether an organization is operating and preparing its financial reports in accordance with the rules and regulations as prescribed by the concerned authority. Apart from that all the actions as well as efforts that go into the preparation of the forensic reports are adventurous as well as require a lot of intelligence and sharp business acumen. Thus the forensic accountants that prepare the forensic accountant reports have to be well equipped with the latest technology and softwares as well as stay abreast of the current happenings in the field of finance.