An orderly analysis, investigation, inquiry, test,
inspection, or examination along a “paper trail” in the
search for fraud, embezzlement, or hidden assets
Treats all figures as suspect until proven otherwise
Fraud is something the internal or external auditors
were supposed to guard against through their
periodic audits. Now that auditors can only check
for the compliance of a company’s books to generally
accepted accounting principles, auditing standards,
and company policies, a new category of accounting
was needed to detect the fraud in companies that
suspected fraudulent transactions.
Investigating and analyzing financial evidence.
Developing computerized applications to assist in
the analysis and presentation of financial evidence.
Communicating their findings in the form of reports,
exhibits and collections of documents.
Assisting in legal proceedings, including testifying in
courts, as an expert witness and preparing visual aids
to support trial evidence.
Often associated with investigations of criminal
For eg: A typical investigative accounting assignment
would be an investigation of employee theft.
Review of the factual situation and provision of
suggestions regarding possible courses of action.
Assistance with the protection and recovery of assets.
Co-ordination of other experts
Provides assistance of an accounting nature in a matter
involving existing or pending litigation. It deals primarily
with issues related to the quantification of economic
Assistance in obtaining documentation necessary to support
or refute a claim.
Review of the relevant documentation to form an initial
assessment of the case and identify areas of loss.
Assistance with settlement discussions and negotiations.
Shareholders' and Partnership Disputes
Business Economic Losses
Meet with the client
Perform a conflict check
Perform an initial investigation
Develop an action plan
Obtain the relevant evidence
Perform the analysis
Prepare the report
Niche consulting refers to the need to specialize.
The need for niche consulting has become imperative
Recent corporate accounting scandals
Outcry for transparency and honesty in reporting
Fast based development in business
Post Graduate Diploma in Forensic Accounting
Certificate Course in Forensic Accounting Profession
Certified Anti-Money laundering Expert
Certified Bank Forensic Accounting
Certified Vigilance and Investigation Expert
Forensic accounting has come into the lime light due to following
-- rapid increase in frauds and white collar crime
-- belief that law enforcement agencies have insufficient
Forensic accounting, in fact, integrates accounting, auditing, and
investigative skills to conduct an examination into a company’s
While the forensic accounting and auditing practice had
commenced in the US as early as 1995, the seed of this
specialization has yet to take off in India.