What is the role of forensic accountants?

Fraud related to accounting has always been around and it has only increased. According to the Global Fraud and Identity Report, 33% of businesses experienced more fraud losses than they did in the prior year. Many times there are cases where it becomes difficult to understand how did it happened or when did it started or who did it. Thus to identify this and interpret the events, forensic accountants are there. identification, interpretation, and communication of the evidence of economic transactions and reporting events are called forensic accounting, and the person responsible for conducting these processes is called a forensic accountant. A forensic’s accountant is job is very crucial as it deals with the financial security and safety of the company’s accounts and finances.

• Examine transactions -

A forensic accountant examines the transactions and checks where is the money going or coming from and where is the money missing in case of certain situations and a possible solution to how can that money be recovered.  

• Expert Witnesses -

Forensic accountants interpret and make reports on their findings. In case of any court hearings, they present the report as proof and findings of the case. They often testify as expert witnesses in court hearings. 

• Varied roles -

Each company deals with the money differently and fraudsters target organizations on the basis of their duties. Some forensic accountants work on broader fraud cases like with law enforcement agencies or legal/law firms. 

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