Forensic accounting is a special subsection of accounting that goes beyond the typical job description of an accountant. Forensic accountants use their work in courtroom and other legal settings to help. Their primary roles are litigation support and investigative accounting (Zysman, 2012). To do this, forensic accountants combine accounting, auditing, and investigative skills. However, conducting investigations is only one component of a forensic accountant's job description; they also have to be capable of translating what they find into understandable evidence for the courtroom setting. In order to do this, "forensic accountants are trained to look beyond the numbers and deal with the business reality of the situation" (Zysman, 2012). Forensic accountants may perform a variety of different functions, including: forensic investigations, forensic audits, internal audits, and external audits. A forensic investigation is any investigation aimed at producing evidence for the courtroom. A forensic audit is an audit that is conducted…...
mlaReferences
Acuff, B., Hamrick, S., & McDade, B. (2011). Role of the forensic accountant in litigation.
Retrieved November 14, 2012 from Slideshare website: http://www.slideshare.net/DecosimoCPAs/role-of-the-forensic-accountant-in-litigation
AICPA. (2012). AICPA code of professional conduct. Retrieved November 14, 2012 from AICPA website:
This means laying out for the jury and the judge the role of different parties and how this contributed to illegal activities. It is at this point when everyone can understand the full context of the case. (Singleton, 2010) (Golden, 2011)
Analyze the legal responsibility a forensic accountant has while providing service to a business.
The legal responsibility of a forensic accountant is to determine when fraudulent activities have taken place and report them to stakeholders. Moreover, they play a role in establishing different safeguards which are preventing this from happening. The combination of these factors, is illustrating how they are at the forefront of protecting the accuracy of the financial information provided by the firm and its practices. (Singleton, 2010) (Golden, 2011)
esearch two (2) cases where forensics accountants have provided vital evidence in a case. Summarize the cases and the importance of the forensic accountant's role during each case.
Two cases…...
mlaReferences
Fox, L. (2004). The Rise and Fall of Enron. Hoboken, NJ: Wiley.
Golden, T. (2011). A Guide to Forensic Accounting Investigation. Hoboken, NJ: Wiley.
Lewis, L. (2011). Con Game. New Brunswick, NJ: Transaction Publishers.
Pedneault, S. (2012). Forensic Accounting. Hoboken, NJ: Wiley.
The forensic accounting done on Koss reveals the importance for a business's auditing firm's responsibilities. It also shows that an auditing firm is liable to face legal charges for failing to find a fraud in their accounting activities in a business.
The forensic accounting carried out on Koss revealed that the Vice President Sujata and the former Senior Accountant, Julie Mulvane, engaged in a range of accounting fraud cover ups of Sujata's embezzlement from Koss (Singleton & Singleton, 2010). The investigation revealed that the yearly amounts stole from the company were significant for the amounts were relative to sales and shareholder's equity. The forensic audit also revealed that the lack of adequate internal controls by Koss and Michael Koss, Mulvaney was able to hide substantial embezzlements by Sujata. Internal controls at the time required Koss to approve invoices for payments of $5,000 or more. However, these systems did not prevent…...
mlaReferences
Boone, L.E. & Kurtz, D.L. (2011). Contemporary Business. 14th ed. Wiley Publications.
Bruce, a.C. (2009). The Direct Examination of a forensic accountant. Family Advocate, 31(4), 39-41.
Kushniroff, M. (2012). Forensic accounting demystified. GSTF Business Review (GBR), 1(4), 19-24.
Malan, F. & Smit, B. (2001). Ethics and Leadership: In Business and Politics. Gazelle Distribution.
roles of forensic accountants in preventing and detecting fraud within a business community. The paper highlights the requisites and basic responsibilities of a forensic accountant. The paper also makes references on the special cases where forensic accountants have assisted in fraud detection and prevention.
Overview of Forensic Accounting
Forensic accounting is the specialty area of accounting used to train an individual to develop the special accounting skills to detect and prevent financial fraud. The goal of forensic accountants is to fight financial crimes within the contemporary business environment. (Patil, 2011). Typically, a forensic accountant assumes an important position in the investigating services, legal services and regulatory services within a financial environment. In performing their roles, forensic accountants attempt to identify the gaps in accounting information, internal control and compliance of a business organization. In the light of the corporate scandals, especial the Enron Corporation and WorldCom scandals, that swept the financial…...
mlaReferences
Bressler, L. (2012). The role of forensic accountants in fraud investigations: Importance of attorney and judge's perceptions. Journal Of Finance & Accountancy, 91-9.
Cali, J. (2012). The Forensic Accountant & Fraud Examiner Tool Kit (3rd Edition). St. Louis, Missouri.
Digabriele, J.A. (2008). The Investigation of the Relevant Skills of Forensic Accountants. Journal of Education For Business, 83(6), 331-338.
Haggerty, J. Karran, A.J. Lamb, D.J. et (2011). A Framework for the Forensic Investigation of Unstructured Email Relationship Data. International Journal of Digital Crime and Forensics, 3(3): 1-18.
Goldman Sachs
Forensic accounting
Fraud at Goldman Sachs
The recent recession and financial scandal brought to light many unethical, illegal, and quasi-legal practices of the major investment firms. One example of this was the Goldman Sachs securities fraud case, in which the firm was accused of creating and selling bundled mortgage investments in an instrument that was intended to fail and which the company' bet against' with a desire to make a profit (Storey & Morganson 2010).
The government's case against Goldman Sachs concerned Abacus 2007-AC1, one of 25 investment vehicles specifically created to allow its clients to "bet against the housing market" (Storey & Morganson 2010). This "initially protected Goldman from losses when the mortgage market disintegrated and later yielded profits for the bank" (Storey & Morganson 2010). Ironically, one of the initial marvels of the credit crisis was the degree to which Goldman appeared to emerge unscathed, in contrast to its rivals.
"Goldman…...
mlaReferences
Dallas Fed' Fisher criticizes Dodd Frank. (2012). Naked Capitalism. Retrieved:
Delaney, Arthur. (2011). Goldman Sachs fraud explained. Huffington Post. Retrieved:
Ethics Forensic Science
Legal and Ethical Issues in Forensic Science
hen most people think about the conviction of criminals, scientific evidence provides some of most credible evidence available. Scientific evidence is generally considered to be fail-safe by a majority of the public. However, this is not always the case. There are many errors that can occur during the scientific accumulation of the evidence. Furthermore, there are also some cases in which the evidence is purposefully altered to provide leverage for either party in a trial to further their personal ambitions. There are also cases of negligence in which the evidence was simply not handled to the appropriate standards. hatever the case may be, when peoples' lives are on the line, there are clear legal and ethical requirements for forensic scientist that must be upheld at all times. This analysis will focus on a few examples of unethical or illegal behavior that occurred…...
mlaWorks Cited
Beiser, V. (2013, November 25). When Crime Labs Go Criminal. Retrieved from Pacific Standard: http://www.psmag.com/science/crime-labs-go-criminal-70638/
Dutelle, A. (N.d.). Ethics and Forensic Science. Retrieved from Evidence Technology Magazine: http://www.evidencemagazine.com/index.php?option=com_content&task=view&id=453
Refuge, J. (2011, June 24). Ethics and Training in Forensic Science. Retrieved from Crime Scene Investigator: http://www.crime-scene-investigator.net/ethicsinforensicscience.html
Rogers, T. (2004). Crime scene ethics: souvenirs, teaching material, and artifacts. Journal of Forensic Science, 307-311.
Fraud and Forensic Evidence
Fraud to Trial Process
The case study presents a very interesting criminal act, the use of re-directing payers to a mock PayPal, an online payment processing company, where the criminals were then able to capture the PayPal username and their corresponding passwords to access their PayPal accounts. This unusual activity was noticed by a PayPal fraud investigator who noticed there were several accounts that were being opened under the same last names. To that end, after one of the merchants reported being directed to the mock PayPal site, the fraud investigator looked into a report from a PayPal merchant. The initial gathering of e-evidence was by the fraud investigator who used two freeware network-discovery tools that were able to trace the accounts in question to a specific IP address. At this time, they also found a connection to a fake PayPal server address and a shipping address in…...
Essay Topic Examples
1. The Evolution of Forensic Accounting in India:
This topic could explore the historical development of forensic accounting in India. It would cover early accounting fraud cases, the emergence and refinement of forensic accounting techniques, and the eventual establishment of professional bodies and standards in India. The essay could also examine the catalysts for growth in this field within the Indian economic and legal landscape.
2. Role of Forensic Accounting in Battling Corruption and Fraud:
An essay on this topic would discuss the importance of forensic accounting in the fight against corporate fraud, money laundering, and corruption in India. It would analyze various high-profile cases where forensic accountants played a key role in uncovering financial discrepancies and bringing the perpetrators to justice.
3. Forensic Accounting and the Indian Legal System:
This topic would delve into how forensic accounting interacts with the Indian legal system. It would include a discussion on the admissibility…...
mlaPrimary Sources
Comptroller and Auditor General of India. \"Significant Auditing Practices.\" Comptroller and Auditor General of India: Performance Audit Reports, 2022.
Ministry of Corporate Affairs, Government of India. \"The Companies Act, 2013.\" Ministry of Corporate Affairs, 2013, www.mca.gov.in/Ministry/pdf/CompaniesAct2013.pdf.Central Bureau of Investigation. \"Handbook on Fighting Corruption.\" Central Bureau of Investigation, 2021.Association of Chartered Certified Accountants. \"Forensic Accounting in India.\" Association of Chartered Certified Accountants, 2018, ACCA Technical Activities and Research.India, Institute of Chartered Accountants of. \"Guidance Note on Forensic Accounting and Investigation.\" The Institute of Charentrant Accountants of India, 2020.
Assets in the investment portfolio were overvalued. Financial transactions were structured to report smaller amounts of debt and create the appearance of greater cash flow. Financial results were represented in a false and misleading manner.
Forensic accountants also played an important role in the Enron case by doing audits and investigating accounting practices to gather evidence of how the fraud was performed. They played vital roles in the court room in presenting the evidence against cross examination and scrutiny. The forensic accountants were highly valued for their objectivity in the way evidence was presented.
Accounting, auditing, investigation, business, and understanding human behavior enabled forensic accountants to gather evidence for prosecution of fraud in court cases involving fraudulent accounting practices. These are vital skills forensic accountants are required to maintain. Forensic accountants must maintain competency, due care, objectivity, integrity, confidentiality, and proper conduct at all times, whether working with a client or…...
mlaBibliography
Code of Professional Ethics. (2012). Retrieved from Institute of Certified Forensic Accountants: http://www.forensicglobal.org/ethics.html
Homan, P. (2006, Mar - Apr). Fraud Buster. Retrieved from CPA Magazine: http://www.utoronto.ca.difa/PDF/Articles/FraudBuster.pdf
Jury Finds Former Master Graphics, Inc. CEO Liable for Securityies Fraud Arising From Accounting Scheme. (2008, Sep 8). Retrieved from SEC: http://www.sec.gov/litigation/litreleases/2008/li20705.htm
Shields, a. (2010, Mar 29). The role of forensic accountants. Retrieved from dolmanbatemen.com: http://www.dolmanbateman.com.au/1323/the-role-of-forensic-accountants
In the late 1990s, this was not a problem as the stock was continuing to climb to all-time highs. However, once the economy began to slow, is when this strategy backfired by forcing them to issues more stock to cover these losses. As shares were declining, many investors became weary of continuing to participate in these activities. (Healy, 2003)
In late 2001, these activities were brought to the attention of regulators and investors (which resulted in the eventual bankruptcy of the firm). This is illustrating how forensic accounts overlooked or ignored key areas that could have uncovered fraudulent activities. As a result, one could argue that the lack of ethics and the close relationship with company executives helped to perpetuate these abuses. (Healy, 2003)
Insider Trading
Another type of fraud that is most prevalent is insider trading. This is when executives will have specific knowledge of the financial situation surrounding the firm…...
mlaReferences
Albrecht, S. (2006). The Ethics Development Model. Australian Accounting Review, 16 (38), 30 -- 40.
Bettis, J. (2000). Corporate Policies. Journal of Financial Economics, 57 (2), 191 -- 220.
Golden, T. (2011). A Guide to Forensic Accounting. Hoboken, NJ: Wiley.
Gray, D. (2008). Forensic Accounting and Auditing. American Journal of Business Education, 1 (2), 1 -- 12.
Justification of a Forensic Unit
Our Agency has just received $3 million grant from the federal government because of the efficient method that the unit employs in running the department. Additionally, the City Council has agreed to continue assisting the unit with additional funding at the end of the three years provided the department is productive and serve the citizens well. However, the department requires presenting a different budget from the previous budget. This proposal will create a new budget for the forensic unit to describe where all the funding will be allocated. The budget will consider the specialized personnel for the unit because smooth running of the unit depends on the specialized personnel.
Mission Statement of the Specialized Unit
The specialized forensic unit will deliver highest quality forensic services to all our customers, and our unit will deliver accurate service through analysis and the state of art technology. We will accomplish our…...
mlaReference
Bureau of Forensic Service (2009). California Crime Laboratory Review Task Force. California Department of Justice.
Police Executive Research,(2002). Police department budgeting: A guide for law enforcement chief executives. Washington, D.C: Police Executive Research
Forum.
Spence, D. Webster, B. & Connors, E.(2009). Guideline for Operating a new Police Department. U.S. Department of Justice.
skills that a forensic accountant needs to possess and evaluate the need for each skill.
Over the last several years, the role of forensic accountants has been continually evolving. This is because there have been a number of cases surrounding their ability to identify and prevent possible frauds. As a result, various skills must be utilized in the process that will help to improve the effectiveness of actuaries. These include: good communication, the ability to work well with others, determination, the ability to simplify information and investigative intuitiveness. The combination of these factors is allowing forensic accounts to identify and detect possible fraud. When this happens, the negative impact of these activities can be limited. (Davis, 2011)
Good communication is an important skill because it requires talking with different parties during the process of conducting any kind of investigation. This means collaborating on various ideas and identifying potential red flags. The…...
mlaReferences
Forensic Accountants. (2009). Accounting Today. Retrieved from: http://www.accountingtoday.com/news/Forensic-Accountants-Reconstruct-Madoff-Books-50484-1.html
Forensic Accountants. (2010). Accountant Next Door. Retrieved from: http://accountantnextdoor.blogspot.com/2010/06/forensic-accountants-roles-and.html
Davis, C. (2011). Characteristics and Skills. AICPA. Retrieved from:
This role is in response to clients' demands for a single trustworthy individual or firm to meet all of their financial needs. However, accountants are restricted from providing these services to clients whose financial statements they also prepare." (U.S. Department of Labor, ureau of Labor Statistics, 2009)
1. Public Accounting
The work entitled: "The Reality of the CPA's Role" states that modern CPAs work "behind the scenes as trusted advisors in nearly all significant business decisions. Successful accountants display the ability to think strategically and creatively and to be problem solvers and business advisors." (Douglass, 2006) Douglass states that the views of the CPA are widely varied "...whether from the viewpoint of the investing public or from the perspective of the companies that engage CPAs to audit their financial statements or perform other functions. In fact, many people not involved in the business management or accounting profession may perceive CPAs as…...
mlaBibliography
Douglass, Kevin (2006) the Reality of the CPA's Role New Jersey CPA Magazine, April 2006. Accounting and Auditing. Online available at: http://www.amper.com/publications/amper-cpa-role.asp
Erard, Brian (1992) Taxation with Representation: An Analysis of the Role of Tax Practitioners in Tax Compliance. Journal of Public Economics 52 (1993) 163-107. North-Holland. Online available at: http://aysps.gsu.edu/isp/files/ISP_SUMMER_SCHOOL_2008_ERARD_TAXATION_WITHOUT_REPRESENTATION.pdf
Financial accounting for Local and State School Systems (2005) Chapter 4: Governmental Accounting. National Center for Education Statistics. U.S. Department of Education, Institute of Education Sciences. Online available at: http://nces.ed.gov/pubs2004/h2r2/ch_4.asp
Garrison, Ray H. And Noreen, Eric W. (2009) What is Managerial Accounting/Cost Accounting. Accounting Management. Online available t: http://www.accountingformanagement.com/
career interest is accounting. Accountancy is the process of evaluating the financial information about business entities to users such as the managers of the shareholders (Elliot, & Elliot, 2004). Accountancy falls into three areas: accounting, bookkeeping, and auditing.
I choose accounting since it will give me a solid employment with a lucrative wage and this is what is important to me. I have also learned that it can be fun in the investigative way if I se it as such. The work conditions are fine -- not too tedious and best of all I can structure them at my convenience. I can work either for an institution or be self-employed. Chances for advancement also depend on myself and, best of all, I can find global opportunities in any and every business..
• Career goals and career strategy
The kind of job that I am most interested in is working in a prestigious…...
mlaReferences
Accountants and Auditors. Career Information. CollegeGrad.com
Accounting Jobs Today.com Controller | Sample Resume 5
http://www.accountingjobstoday.com/cm/Resumes/controller5.html
Alba, J. Vault career guide to accounting. New York: Vault, c2002.
Accounting Careers
Accounting is a common function in virtually every organization, irrespective of size and industry/sector of operation. The function is generally concerned with documenting business transactions and preparing financial statements. The accounting field offers numerous career paths. These include financial accounting, managerial accounting, internal auditing, tax accounting, financial analysis, payroll clerking, and forensic accounting (Bureau of Labor Statistics [BLS], 2015; American Institute of Certified Public Accountants [AICPA], 2017). Though related, each of these careers is unique in its own way. A financial accountant is involved in making and receiving payments, recording transactions, and preparing financial statements. Closely related to financial accounting is managerial accounting. While a financial accountant prepares financial statements for use by outsiders such as shareholders and lenders, a managerial accountant prepares financial records for internal use. The work of a payroll clerk is to ensure employees are paid accurately and on time. The clerk prepares, processes, and…...
1. The types and examples of financial fraud in various industries
2. The impact of financial fraud on businesses and the economy
3. Preventing and detecting financial fraud in organizations
4. The role of technology in combating financial fraud
5. The legal and ethical considerations of financial fraud
6. Case studies of notable financial fraud scandals and their aftermath
7. The psychology behind financial fraud and the individuals involved
8. The regulatory environment and enforcement mechanisms for addressing financial fraud
9. The cost of financial fraud to consumers and investors
10. The future trends and challenges in the fight against financial fraud.
11. The relationship between white-collar crime and financial....
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