The Importance of the Fraud and Forensic Accounting In The Present Business Scenario
Forensic accounting is one of the most endearing as well as the most adventurous branches of accounting. It is that branch of accounting which is mainly concerned with the frauds and scams that occur in the corporate world. Some of the most important qualifications that are expected from the individual practicing in the field of forensic accounting are that he must have an aptitude to be able to collect evidence in support of the litigation that is filed against the people or the firms, he must have the patience to go through the vast information that needs to be screened that might point to the requisite evidence, also it is required that the accountant inquiring into the fraud and forensic accounting should have great communication and the presentation skills to present the case in front of law that would prove the guilt.
An accountant practicing the fraud and the forensic accounting has to make sure that he has the analytical bent of mind so that he can look at the things with the right and the reasonable perspective. Fraud and forensic accounting at the moment is playing a very important role in preventing the business entities from indulging in any of the irregularities like the manipulation of the financial statements, the misrepresentation of the annual reports, as well as the false show of profits in order to entice the investors and banks.
The fraud and the forensic accounting have proved very helpful in discovering the various frauds that took place in some of the largest business entities in the world. It is quite important to understand that the presence of the fraud and the forensic accounting have also prevented many of the scams from taking place in the business world. Earlier, in the absence of financial investigation the businesses were to some extent falling in the trap of earning money by indulging in irregularities. But the presence of the fraud and the forensic accounting has made sure that the businesses and the companies would remain within the gamut of legal requirements and operate in accordance with the business ethics.