FORENSIC ACCOUNTING

Forensic Accounting is the combination of

accounting, auditing and investigating
skills in detecting a fraud
It is a great weapon against accounting
frauds and malpractices in corporate world
Forensic Accounting developed as early as
1995 in USA but after Harshad Mehta,
Satyam and Kingfisher Airlines case the
same has gained proposition in Indian
context also.

Activities carried by Forensic Accountant

Investigating and analysing financial evidence

Developing computerised applications to
assist in the analysis and presentation of
financial evidence
Communicating their findings in the form of
reports, exhibits and collection of documents
Assist in legal proceedings including testifying
in courts, as an expert witness and preparing
visual aids to support trial evidence

INDICATORS OF FRAUD
Large unexpected losses
Non compliance with corporate policy
or internal controls
Employees apparently living beyond
their means
Inventory shortages remain
unexplained and poorly investigated
Missing and altered documentation