As the complexity and scope of business has expanded through the world, the need to track financial information has grown. There has been a corresponding increase in illegal financial activity according to separate surveys by the U. S. Department of Justice, Pricewaterhouse-Coopers, and the Association of Certified Fraud Examiners (ACFE) (Houck, Kranacher, Morris, Riley, Robertson, & Wells, 2006). An understanding of effective fraud and forensic accounting techniques can assist forensic accountants in identifying illegal activity and discovering and preserving evidence.
Forensic accounting is a science that deals with the application of accounting facts gathered through auditing methods and procedures to legal problems usually dealing with financial and valuation issues (Grippo, 2003). Forensic accounting investigates an allegation where the results are presented in a legal setting. The increasing complexity of the business environment and the growing number of business-related investigations have created a demand for forensic accounting professionals to assist in the investigation of financial and business-related issues. Forensic professionals provide financial, economic and statistical services to companies and their legal advisers involved in litigation, arbitration or mediation, and regulatory investigations or other regulatory issues. Forensic accounting is the application of financial, accounting and investigative skills – to a standard acceptable by the courts – to address issues in dispute in the context of civil and criminal litigation (Financial private eyes see; rapid growth in demand, 2004). Ultimately, forensic accounting involves looking beyond the numbers and grasping the substance of situations (Forensic Accounting: The Scienc ...