OBJECTIVES OF THE WRITTEN ARTICLE: Due to financial fraud and the rapid growth of intellectual offenses, the forensic accounting (F.A.) has been the focus of attention. But this is mainly in India. The integration of accounting, auditing and testing skills is known to professionals as forensic accountants offer fast-growing opportunities, engage in public affairs, and insurance companies, banks, police forces, government agencies, etc. This article seeks to get acquainted with the field of accounting professions with regard to the meaning and nature required for forensic accounting, activities and services, basic knowledge and personal skills. There is indeed a future in F.A. as a separate cab-advice.
The lack of respect and belief in the Indian law enforcement agencies and the rate of growth in white collar crimes triggered the development of Indian forensic accounting. Fraud Agencies do not seem to have time and dedication to detect and prevent mistakes and fraud. According to a large global bookkeeping company, the market is large enough to maintain the unity that is entirely turning to "forensic accounting". Many large and small bookkeeping companies, as well as small companies, have facilitated or developed special forensic accounting departments.
We were convinced that the detection and prevention of fraud or intentional crimes is part of the traditional accounting function. It was thought that internal and external interventions should be audited by regular auditors. It is now clear that auditors can only check if a company's book complies with generally accepted accounting principles, audit standards, and corporate policies. Therefore, they felt that they were discovering those who suspect that they are doing fraudulent deals. This accounting area is called "forensic accounting".
The litmus test of the trial, which was first introduced by the great Sherlock Homes (which many were regarded as the father of forensic accounting) might be the first use of judicial accounting. Although the contribution of the other great historians to the forensic accounting can not be ignored. Various Tricks to Investigate Different Crimes
F.A. is a field of special accounting practice that describes orders from actual or anticipated debates or litigation. The term "forensic" means "for judicial use". Forensic accountants need to keep this statement in mind while working or calculating their program. Work F.A has been developed according to the situation and need. Information and evidence is collected on the basis of the need and the situation. We can say that the situation is tailor-made. The forensic accountants provide expert evidence at the final hearing. Modern middle-sized and large auditing firms have special judicial accounting departments. Within these companies, there may be special judicial accounting departments. Within these groups there may be additional sub-specializations. Various sub-specializations include insurance claims, personal injury claims, fraud detection, construction or office inspections. Nearly 40 percent of the top 100 US accounting firms are extending forensic and fraud services under Accounting Today. Now, if we consider these data to be significant, we can say that the full contribution of the criminal accounting accounting is based on C.A. the companies would be very significant in the coming years. As increasing examples of fraud, litigation, and prosperous businesses, these services are extremely important as they are at extremely competitive prices
. Forensic accountants use various information on business activity, use financial reporting systems, different accounting and auditing standards and procedures, test techniques and litigation procedures and procedures to accomplish their work. As an advisor to the Audit Committees and to supporting investment analyst research, the "proactive" risk reduction roles are played. As part of the statutory audit, it is possible to design and implement extended procedures. The purpose of such settlement is to measure the losses caused by the negligence of the auditor, to investigate whether the cash was embezzled, the amount of the criminal proceedings, the need to calculate impairment in a separate procedure.
The primary approach of forensic accounting is the explanatory analysis of the phenomena (cause and effect), including the discovery of deception (if any) and its effects – in an accounting system. The primary methodology used by forensic accountants is to control the target. They are prepared to deal with the real world business and have enough expertise to be able to look beyond (behind) the numbers. The number of forensic accountants is increasing rapidly. Job growth accelerated due to the collapse of the Enron company and the collapse of American Twin Towers
This led to an increase in demand for US forensic accountants. So much to India, the creation of SIFO is a milestone for forensic auditors. Ignoring regulatory authorities for monitoring security scams, increasing cybercrime, slowing down the chain of cooperative banks – all refer to the growing need for justice auditors. Understanding the necessity of forensic accountants here is irrelevant. In India, due to the increasing number of scams, the need for forensic accounting is increasing. Regulatory and administrative agencies will exert pressure on the need for judicial practices. This was triggered by the changing nature of Indian and international accounting processes. Inspection and insurance standards also confirm this. Changing the curriculum can be initiated if written exams and practical industrial training are encouraged in the new era to show the "new knowledge base and skills" required by professional accountants. Therefore, we recommend that "judicial accounting and auditing" be included as a paper in various professional trials carried out by various accounting bodies in India. Unfortunately, forensic accounting is largely an unknown area as far as India is concerned. Certified Accountants (CA) are dealing irregularly in such cases. Lawyers, policemen, insurance companies, government and regulatory bodies, banks, courts, and business communities in the western counterpart (countries) are increasingly taking advantage of the services provided by the forensic accountant. Accountants and auditors should have the skills and expertise to get involved in the forensic area of forensic accounting.
What is forensic accounting? The growing demands of companies have changed the concept of forensic accounting. According to Bologna and "Indquist", "applying financial skills and testing mentality to unresolved issues in the context of the rules of proof. It is a new emerging area that includes financial expertise, knowledge of fraud, and business reality and "This means that forensic accounting is well-trained not only in financial accounting but in internal control systems, in legal affairs, in other institutional requirements, in the recognition of theoretical and interpersonal skills
According to AICPA," A forensic accounting applies the accounting principles, theories and discipline to the facts or hypotheses on the issues at issue and includes all branches of accounting knowledge: "Similarly, forensic accounting is defined by Horty:
"Science that deals with financial, accounting, taxation and auditing skills and applications in analyzing, examining, examining, examining and examining civil law, criminal law and jurisprudence in order to receive the truth from which expert advice do it. "
In simple words, forensic accounting includes accounting, auditing and testing skills to help legal matters. It consists of two main components: litigation that would recognize the role of the accountant as expert advisers and investigators who use a forensic accountant and who need any court testimony.
Theft and the liquidation of corporate and individual assets are part of legal affairs. Use their educational activity and experience to discuss facts, theft or forgery. Accounting systems are being investigated by forensic accountants. makes proposals for methods and tools for solving and improving internal control and internal accounting systems. This is accepted to prevent theft and fraud. Because of their background and experience in the field of expertise and education (forensic accounting), the work of a forensic court is increasing to a new level.
Forensic auditors do not dispute the cases. They act as a fact-finding device, trying to find the truth of the hidden facts. Work is done in an objective and objective way. They need legal knowledge, expertise, training and experience to work effectively and in real terms. Trade, Legal, Accounting and Investigation to do the job properly. Judicial support and the court's testimony are preconditions for forensic accountants. This is due to the fact that their work is often judged for the damage done by crimes and civil misconduct to be done perfectly, so the most important is the knowledge of the business valuation theory.
What Exa Are Forensic Accountants Do? Answer: They are prepared to cope with the status of a real business, and they are trained to go beyond numbers.
The analysis, understanding and summarizing of complex financial and business issues are an outstanding feature of this accounting / auditing profession. Knowledge of legal concepts and procedures is indispensable. Insurance companies, public opinion, banks, police forces and government agencies are the most important employers of forensic accounting.
The various workspaces involving the forensic arena arena are in the form of a dot form as follows:
1) Investigating and analyzing financial evidences.
2) Computer software development for the analysis and presentation of financial evidences.
3) Found their results in reports, slideshows, or exhibited material and documents.
4) Provide visual students to support pilot evidence, assist in court proceedings, including witness testimony by court witnesses.
If we want to point out or point out the forensic accountants, we can say the following:
Measuring or quantifying the impact of lost income. Building delays, stolen business secrets, insurance disputes, loss / loss estimates, unlawful debts, employee theft, loss of profit, financial solvency reports, disturbances, loss of goodwill, expropriation loss compensation, compensation costs and minimizing business deflagration consultation. Default damages related to leases, breach of contract, business interruption, shareholder rights violation and partnership agreements, reconstruction of accounting records,
Examination of damages for damage, commercial damage, negligence, partnership disputes, expert evidence, fair value, fair market value and personal injury will be subject to commercial damages. In tax matters, tax advocacy, compliance with financial statements and review, tax returns and tax planning are carried out in areas such as income tax. The analysis, interpretation, summary, presentation of complicated financial issues and the issue of investigative matters are the role of a judicial accountant.
Services provided by forensic accountants are highly needed in the following areas:
1) Finding fraud where employees commit fraud Cheating:
Where an employee engages in fraudulent activity:
Where your staff commit fraud, the forensic accountant tries to find the tools they have created from unused funds, then try to ask them and try to find out the hidden truth.
2) Criminal Investigation: Financial impact matters are the services of forensic accountants. The meaning of accountants is taken into account in the preparation and presentation of the evidence.
3) Accounting for outgoing partner:
If your outgoing partner is not happy with your settlement, you can apply a forensic accountant who correctly assesses your debts (assets) and obligations.
4) Professional Negligence Matters:
The cases of professional negligence are taken over by forensic accountants.
Failure to comply with generally accepted accounting standards (GAAS) or any professional practice or code of ethics required to measure loss due to such negligent or negligent service
5) Arbitration Service: Forensic accounting performs arbitration and mediation services for the business community as they receive special alternative training in alternative dispute resolution
6) Facilitating motor vehicle accident: As a forensic officer knows the vehicles and other applicable laws in force, his services are indispensable for measuring economic loss when a vehicle accidents
7) Accounting for insurance claims: Insurance companies are obliged by the forensic accounting to accurately assess the statements should be settled. Likewise, policyholders are looking for a forensic accountant when they rely on settling claims filed by insurance companies. The court accountant handles losses due to consequential loss policy, various risks, loyalty insurance and other insurance claims.
8) Settlement of Disputes: Contract Offices for Contract Disputes, Construction Claims, Product
9. Cases of Marriage Disputes: Judicial experts speak in matters concerning matrimonial disputes that are merely a matter of tracking, positioning, and evaluations of all the assets involved.
Basic knowledge of legal experts:
The forensic accountant is expected to be a specialist in accounting and financial systems. Yet, as companies are getting bigger and more complicated, disclosure of fraud requires that the forensic accountant becomes known with an increasing number of professional skills and competencies. Here is a wide range of useful expertise for a forensic accountant:
"In-depth knowledge of financial statements and the ability to provide critical analysis that help forensic accounting to detect an abnormal form of accounting information and to recognize a source.
"Deep understanding of fraud systems, including, but not limited to, asset acquisition, money laundering, bribery and corruption.
"Understanding the company's internal control systems and establishing a control system for risk assessment, achieving management objectives, informing employees of their audit tasks, and monitoring program quality to make corrections and make changes.
"Knowledge of Computing Skills and Networking Systems These skills help forensic accountants to conduct investigations in e-banking and computerized accounting systems.
"Knowledge of psychology to understand the impulses behind the criminal behavior and to develop fraud prevention programs that motivate and encourage workers.
"Interpersonal and communication skills that help disseminate information about company ethics policies and help forensic accounting to conduct interviews and obtain necessary information.
"A thorough knowledge of corporate governance policies and their regulatory legislation.
"Enforcement of Criminal Law, Civil Law and Judicial and Judicial Procedures
Necessary Personal Skills:
So what do you take to become a forensic accountant? In addition to the special knowledge of the technique of discovering fraud, patience and analytical thinking are needed. Man has to look at the numbers and understand the situation. There is a need for the same basic accounting skills as it can become a good auditor and able to pay attention to the smallest details, analyze data thoroughly, think creatively, become a common business, have a good understanding of the computer, and have excellent communication skills. In the "sixth" sense it may be useful to reconstruct the details of previous accounting transactions. A photographic memory helps to visualize and reconstruct past events. The forensic accountant also needs to maintain his courage when detailing these events on the witness stand. Finally, the forensic accounting officer must be sensitive to personal attacks on professional credibility. The cheating accountant (sometimes called the forensic accountant) needs to be attentive and watchful. This can improve the ability to identify lies if they are fraudulent or not. This is because "not all liar cheaters, but all cheating liars" (Wells).
According to the forensic accounting expert, "we can compare the properties of a forensic accountant with a well-popped pizza." Accounting knowledge of judicial accounting The size and extent of the baking determines the quality of the pizza The middle layer controls audits, internal controls, risk analysis and fraud detection Scattered knowledge is like spreading a cheese pie. Pizza areas are a basic understanding of the legal environment The legal environment is essential to support disputes The cherry slicing of pizza is a strong communication skill both in writing and in words The pizza base, the spread of cheese and the perfect combination of good fodder makes the pizza fine and the company's laws that are perfected by the Forensic Auditor. Human nature exists. "
In addition to these personal characteristics, accountants have several additional requirements l meet to become successful forensic accountants, say the Certificate, recognize their competence. Certified Fraud Examiners – Association of Certified Fraud Examiners (ACFE) can be found in the United States for judicial accounting. The Indian Chapter of ACFE is based on the laws of the USA based on white-collar offenses. However, there is no official body that provides formal education in India for fraud. In addition to the formal certificate, they can deepen their knowledge and become acquainted with the skills in judicial accounting, participate in a forensic accounting officer, attend various international conferences, read relevant journals, books, and other jurisdictional accounting literature
. Fraud effectively needs government's active support at every stage. Three or four such agencies in India dedicated themselves to the fight against fraud. The Severe Fraud Office is the income tax, the FEMA, the RBI Act, and so on. Examines the violation; CBI (Economic Office Wing) deals with major financial frauds; The Central Vigilance Committee deals with corruption. These are the most important government agencies that are struggling against various types of fraud. Unfortunately, there is no vocational training for any university in the country. Recently, TCS software has also appeared in the fight against money laundering and Alpex Systems has designed software to combat telecommunications scams. Thus, the fight against fraud with software launched in India, some large companies such as ACL and IDEA joined the competition.
Need For Niche Consulting:
CPA Vision says: "CPAs are a trusted professional who allows people and organizations to shape their future." Combined with insight, the CPA provides: a) the clarity and objectivity of the overall picture, the transposition of plex information on the maize into critical knowledge, (c) the prediction and creation of opportunities, and (d) the realization of visual transformation. ensuring the broader range of insurance services, the latest corporate accounting scandals, transparency and reporting honesty, has yielded two distinct, yet logical results: firstly, criminal accounting skills have become crucial to constraining complicated accounting maneuvers that confuse financial statements. Second, public demand and subsequent regulatory activity transformed corporate governance More and more, the company's officers and directors are ethical d legal control. The common aim of both tendencies is to address investors' concerns about the financial reporting system responsibly. Indeed, there is a future for forensic accounting as a separate niche advisory area in India. The need for specialization, also called Niche Consulting, is essential for accounting practitioners, as fast-paced business developments require specific knowledge and skills. While most CAs have excellent analytical skills, they must recognize that "forensic services require special" training and a real "practical" corporate experience. There is a need for specialized information, not just for audit and tax service. Customers wanting to see people who have unique skills and experience. With the arrival of audit activity and the rapid development of technology that makes existing services at low cost and inexpensive, it seems time to gain these unique skills. In order to assist professionals in niche counseling, some American professional organizations have concluded that "The future success of the profession depends in part on how the public perceives the capabilities of CPAs. business practices and strategies are key, we go to the gap market, we first look at our strengths, we go to action, only know how to serve our customers and make money in the right way. "One of the areas where" niche "advice becomes a global trend is in the field of" Forensic Accounting and Auditing ". But the most important issue in the Indian accounting profession: Are we ready to seize the Challenging Action?
There is an infant state in India. India is still not a portable area. But due to the growing number of bank and cyber fraud, the importance of increasing importance can not be denied.
An immediate milestone is the "Forensic Research Foundation". They support fraud investigation. The publication of a "monthly" journal is termed "white crime". This applies to judicial and economic crimes. Another international organization called KPNG has set up an investigation investigation center in India. Networks Limited, a Delhi-based organization working in a similar field, is also trying to find innovation to uncover financial irregularities and crimes in India. Anti-Fraud Office (SIFO) was launched for the same reason in India, ie in the detection and prevention of economic irregularities and offenses. The need for such organizations and the importance of forensic auditors has been highlighted by the L.N.Roy Committee. The Parin Parekh Committee also expresses the need to establish a "fraud detection committee". The main purpose of such bodies is to prevent the interests of stakeholders
Judicial Accounting In India, the rapid growth in white collar crime has only recently come to the fore and the conviction that our law enforcement agencies do not have the necessary expertise or time to detect frauds. A large global accounting firm believes that the market is large enough to support a strictly "judicial" accountant independent body. All major accounting firms, as well as many medium-sized and boutique companies have recently established forensic accounting departments.
Forensic accounting effectively integrates accounting, auditing and auditing skills to test the company's financial statements. Widespread knowledge (within the aforementioned topics) is key to the success of entry-level forensic accountants. As forensic accounting is a relatively new field of study, work definitions and sharing of corporate experiences need to be realized and encouraged to ensure a common understanding. It is indeed a great future for the forensic accounting as separate niche counseling.
While judicial accounting and auditing practice in the United States began in 1995, the core of this specialization has not yet started in India. Forensic accounting only deals with the financial implications of cases entrusted to them and does not control. Because of global competition, the accounting profession will convince the market that it has "best equipped" professionals to perform such services.
Forensic auditors increasingly play "proactive" risk reduction roles by designing and implementing expanded procedures as an advisor to the audit committees and assisting investment analyst research.
Although most CAs have excellent analytical skills, they must recognize that "forensic" services are "special" training and a real "practical" corporate experience.
1) Forensikus számvitel: főszerkesztő: Crumbley D. Larry, kiadó: Inc.Edwards. R.
2) A könyvvizsgáló könyve 2007-ben, Oldalak: 1000-1010.Dr. Madan Bhasin, A szerző vezetője, Számviteli részleg, Mazoon Főiskola, Muscat, Oman szultánsága.
3) Referencia megjegyzések Prof. Dutta Kr. Uttam, Reader Deaprtment Kereskedelem, Olvasó, Burdwan Egyetem.
4) A weboldal elérése: http://www.wikipedia.com elérhető a 2008. február 4-én.
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