Forensic accounting is the practice of utilizing accounting auditing and investigative skills to assist in legal matters to obtain an accurate result to establish the accountability for administrative proceeding. You may be wondering, why study forensic accounting?
Forensic accountants are specially trained to apply the knowledge in auditing, accounting and finance as well as utilizing the investigative skills to uncover the truth in illegal financial activities, assist in investigating potential crimes and form legal opinions.
Why is there a high demand for forensic accountants in the market nowadays? The more advanced of computer technology, the easier for white collar people to commit financial crimes. As a result, the increasing number of financial crimes has also increased the demand for forensic accountants. It is the fastest growing area of accounting today by bringing more and more job opportunities in the job market.
Forensic Accounting is not new to the job world. It is what helped Elliot Ness put Al Capone behind bars for tax fraud. (Al Capone is America’s best known gangster and the single greatest symbol of the collapse of law and order in the United States during the 1920s Prohibition era. Capone had a leading role in the illegal activities that lent Chicago its reputation as a lawless city. Ness was the Head of Operations under Volstead Act, targeting the illegal breweries and supply routes of Capone).
A lot of people do not really know what forensic accounting is about. Forensics accounting is actually the practice of utilizing accounting, auditing, and investigative skills to conduct examination into a company’s financial statements in legal matters.