Forensic Accounting In Today's Society

Essay by EssaySwap ContributorUniversity, Bachelor's February 2008

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Forensic Accounting in Today?s Society Accounting in general has become a major part of the world in terms of business and economic growth. Almost every person in the world will need to use some kind of accounting in his or her lifetime. The language of accounting is universal unlike law, medicine, politics, etc. There are many divisions in the field of accounting, and each different sector is responsible for a specific aspect of accounting. Forensic accounting is a special yet important sector of accounting because it deals very much with law. The term forensic simply means, ?of or used in connection with courts of law?. Therefore, forensic accounting uses many aspects of law as well as many detective skills. It is the integration of accounting, auditing, and investigative skills to determine a reality of a situation. It also provides an accounting analysis that is suitable to the court, which will form the basis for discussion, evidence, debate, and ultimately resolution in a case.

A forensic accountant is usually called an ?expert witness? in court. An expert meaning ?one who by reason of education or specialized experience possesses superior knowledge respecting a subject about which persons having no particular training are incapable of forming an accurate opinion or deducing correct discussions?. Forensic accounting is a specialized part of accounting and the use of these experts are essential to many cases involving money, contracts, and even murder. It covers two broad areas: litigation support and investigative accounting. Litigation support is described as, ?any professional assistance non lawyers provide to lawyers in the litigation process.? This is only part of what a forensic accountant achieves. Therefore, the qualities and characteristics of a potential forensic accountant, the work of a forensics expert, and the role they play in court and in litigation proceedings...