The use of intelligence-gathering techniques and accounting to develop information and opinion for use by attorneys involved in civil litigation and give trial testimony if called upon.
Identifying, recording, settling, extracting, sorting, reporting, and verifying past financial data or other accounting activities for settling prospective legal disputes or using such past financial data for projecting future financial data to settle legal disputes.
Before financial statements were audited by an independent auditor, the courts were often the only place where challenges were made and accounting experts were brought in to give testimony on the disputes in question.
In North America, forensic accounting can be traced back as far as 1817 to Meyer v. Sefton , a Canadian case, that allowed an ‘expert witness’ to testify in court.
FAMOUS FORENSIC CASE or HOW AN ACCOUNTANT NABBED AL CAPONE
Al Capone, bootlegger and gangster, seemed to be impossible to arrest and convict on any crime.
Although he made millions from his illegal activities, he had never filed a tax return.
The IRS ushered forensic accounting into the modern age in the US when they went after Al Capone.
An IRS agent from the Special Intelligence Unit found enough evidence to convict Capone of income tax evasion.
These laws: outlaw “counterfeit” access devices that are used for fraudulent purposes; deal with fraud in connection with computers, communication lines, interception of electronic communications, etc.
USA Patriot Act, passed in 2001, strengthened US cyber laws and expanded cybercrime definitions. Under the Patriot Act, an activity covered by the law is considered a crime if it causes a loss exceeding $5000, impairment of medical records, harm to a person or a threat to public safety.