Forensic Accounting
In the present day forensic accounting plays a huge role in many of the court cases publicized by the media. With the spotlight on the profession, this is a good opportunity to discuss the following topics: 1) Five skills that a forensic accountant needs to possess.
2) The role of a forensic accountant within a courtroom environment.
3) Analyze the legal responsibility a forensic accountant has while providing service to a business.
4) Examine two cases where forensic accountants have provided vital evidence in a case, summarizing their importance to the case.
The word forensic is defined as relating to the use of science or technology in the investigation and establishment of facts or evidence in a court of law. Forensic accounting is defined as using financial knowledge and skill joined with investigative techniques to resolve a matter in a legally defensible manner exacting to the specifications of the law. (Brown, 2008) It is said that forensic accounting has been around since the Egyptian times when scribes had to account for all of the Pharaoh’s assets. The forensic accounting that we know today was coined in 1946, by Maurice E. Peloubet in an essay “Forensic Accounting: Its Place In Today’s Economy.” (Rasey, n.d.)
Forensic accountants are far more than the regular accountant in that they must possess key skills to carry out their duty of understanding financial documents and presenting any illegal activity portrayed in those documents to the court. Five key skills that a forensic accountant must posses are the following:
1) A forensic accountant must be analytical. This is the most valuable skill of the accountant in that they must be able to analyze a vast amount of financial documents and organizational actions in order to identify evidence to use in a legal case. Attorneys and Certified Public Accountants rated this skill as the number one skill a forensic accountant must possess in a 2009
2) The role of a forensic accountant within a courtroom environment.
3) Analyze the legal responsibility a forensic accountant has while providing service to a business.
4) Examine two cases where forensic accountants have provided vital evidence in a case, summarizing their importance to the case.
The word forensic is defined as relating to the use of science or technology in the investigation and establishment of facts or evidence in a court of law. Forensic accounting is defined as using financial knowledge and skill joined with investigative techniques to resolve a matter in a legally defensible manner exacting to the specifications of the law. (Brown, 2008) It is said that forensic accounting has been around since the Egyptian times when scribes had to account for all of the Pharaoh’s assets. The forensic accounting that we know today was coined in 1946, by Maurice E. Peloubet in an essay “Forensic Accounting: Its Place In Today’s Economy.” (Rasey, n.d.)
Forensic accountants are far more than the regular accountant in that they must possess key skills to carry out their duty of understanding financial documents and presenting any illegal activity portrayed in those documents to the court. Five key skills that a forensic accountant must posses are the following:
1) A forensic accountant must be analytical. This is the most valuable skill of the accountant in that they must be able to analyze a vast amount of financial documents and organizational actions in order to identify evidence to use in a legal case. Attorneys and Certified Public Accountants rated this skill as the number one skill a forensic accountant must possess in a 2009
References: Brown, Michael. June 2008. Forensic Accounting – Past, Present, & Future. M&K Rosenfarb LLC. Retrieved from: http://www.envoynews.com/rwcpas/e_article001108198.cfm?x=b11 Rasey, Michelle. (n.d.) History of Forensic Accounting. eHow Money. Retrieved from: http://www.ehow.com/about_5005763_history-forensic-accounting.html Davis, Charles. Ogilby, Suzanne. Farrell, Ramona. August, 2010. Survival of the Analytically Fit: The DNA of an Effective Forensic Accountant. Journal of Accountancy. Retrieved from: http://www.journalofaccountancy.com/Issues/2010/Aug/20092400.htm Tucker, Avram S. June 2011. The Numbers Tell a Story. California Lawyer. Retrieved from: http://www.callawyer.com/Clstory.cfm?eid=916111 Papandrea, Dawn. (n.d.) Forensic Accountant: Duties and Job Market. College Surfing. Retrieved from: http://www.collegesurfing.com/content/forensic-accountant/ Washington, Ruby. December 20, 2012. Bernard L. Madoff. The New York Times. Retrieved from: http://topics.nytimes.com/top/reference/timestopics/people/m/bernard_l_madoff/index.html Refrati, Amir. Frank, Rober. March 11, 2009. Madoff Set to Plead Guilty to 11 Felonies. The Wall Street Journal. Retrieved from: http://online.wsj.com/article/SB123669568988683829.html WEBCPA Staff. May 15, 2009. Forensic Accountants Reconstruct Madoff books. Accounting Today. Retrieved from: http://www.accountingtoday.com/news/Forensic-Accountants-Reconstruct-Madoff-Books-50484-1.html Sherwood, Chris. N.D. About Enron & Forensic Accounting. eHow Money. Retrieved from: http://www.ehow.com/about_4614281_enron-forensic-accounting.html Sostek, Anya. March 29, 2009. Fraud fighters: Forensic accountants on front line in the fight against fraud. Pittsburg Post-Gazette. Retrieved from: http://www.post-gazette.com/stories/business/news/fraud-fighters-forensic-accountants-on-front-line-in-the-fight-against-fraud-335673/