Forensic Accounting Essay Example
FORENSIC ACCOUNTING
Abstract
In today’s fast growing business world, it is necessary for an organization to evaluate its systems, internal control procedures and to analyze the risks involved to ascertain appropriate implementation and working of its processes. The organization must also identify, record, settle, extract, sort, report and verify past financial data. With increasing number of frauds within organizations, the regulatory framework has also been enhanced with introduction of Corporate Governance, Clause 49, SOX and ISA 240. Companies thus need to use intelligence gathering techniques and accounting / business skills to develop information and opinion on the above due to which Forensic Accounting is gaining more and more importance. Thus Forensic Accounting certainly provides a Value Addition to the business.
This research paper shall discuss the Conceptual Framework which may be followed while dealing with Forensic Audit and the Critical requirements for a successful investigation like Confidentiality, Investigative Expertise, Industry Expertise, Multi Location Considerations, etc. It shall give an insight into the key points that need to be considered while conducting a Forensic Audit like maintaining an attitude of professional skepticism, obtaining information to identify risks, evaluating the entity related controls, designing and performing audit procedures, obtaining written representations from management relating to fraud, communicating with management and the audit committee, etc. It shall also deal with the proposed Fraud Risk Management Strategy along with the Key Areas of Concern like Code of Ethics, Risk Management, Effective Controls and Audit & Fraud Response Plan.
INTRODUCTION:
Forensic Accounting is the use of intelligence gathering techniques and accounting / business skills to develop information and opinion. It is the action of identifying, recording, settling, extracting,
Abstract
In today’s fast growing business world, it is necessary for an organization to evaluate its systems, internal control procedures and to analyze the risks involved to ascertain appropriate implementation and working of its processes. The organization must also identify, record, settle, extract, sort, report and verify past financial data. With increasing number of frauds within organizations, the regulatory framework has also been enhanced with introduction of Corporate Governance, Clause 49, SOX and ISA 240. Companies thus need to use intelligence gathering techniques and accounting / business skills to develop information and opinion on the above due to which Forensic Accounting is gaining more and more importance. Thus Forensic Accounting certainly provides a Value Addition to the business.
This research paper shall discuss the Conceptual Framework which may be followed while dealing with Forensic Audit and the Critical requirements for a successful investigation like Confidentiality, Investigative Expertise, Industry Expertise, Multi Location Considerations, etc. It shall give an insight into the key points that need to be considered while conducting a Forensic Audit like maintaining an attitude of professional skepticism, obtaining information to identify risks, evaluating the entity related controls, designing and performing audit procedures, obtaining written representations from management relating to fraud, communicating with management and the audit committee, etc. It shall also deal with the proposed Fraud Risk Management Strategy along with the Key Areas of Concern like Code of Ethics, Risk Management, Effective Controls and Audit & Fraud Response Plan.
INTRODUCTION:
Forensic Accounting is the use of intelligence gathering techniques and accounting / business skills to develop information and opinion. It is the action of identifying, recording, settling, extracting,