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Forensic Accounting (Definition) | Skills | Application - YouTube
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hello everyone hi welcome to the channel
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clicking the bell icon friends today we
have a topic that's known as the
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forensic accounting the top skills that
are required for forensic accounting and
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what are the careers in the firms in the
salary that is involved in this
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particular scenario we'll try and
understand this in a much more detailed
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format let's let's begin cv we all love
reading detective stories right
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or watching thriller don't we yeah the
way the chief investigating officer the
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best example you know is the Sherlock
Holmes if everyone loves shallow so the
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way this officers they find out Clues
they collect evidences they solve the
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mystery and keeps us you know
tenterhooks
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so while books and the movies they
transport us into the world of
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excitement and at and ventures in reality
things are from being so excited more so
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in the case of the corporate accounting
investigations do have mysteries are
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solved and the cases are presented but
none of this bring thrill to the
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government so this are the few most
trying times of the company when it is
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faced with the accounting scandal or the
financial fraud d if you see the
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accounting scandals or the political or
business scandals which arise with the
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disclosure of the financial offenses by
trusted executives of the corporations
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or governments this kind of for what we
call as the false disclosures and
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misrepresentations can result in
pureness financial crimes while audits
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are no order performed periodically and
this are high level scams which require
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great degree of investigation something
can be presented as are the arguments code
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and this is where the forensic
accounting comes into picture
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now in this suit on we'll look at
forensic accounting in a much more
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detail format
remember one thing forensic accounting
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employees a mix of accounting what we call as auditing investigation and human to
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conduct scrutiny in two companies
financial state so those forensic
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accounting provides and accounting
analysis from from litigation
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perspective so forensic accountants
usually follow the follow up process
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okay which involves accumulating
financial recall as evidences developing
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technical applications organizing the
information collected and communicated
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their findings in the firm of reports or
presentation suited for the testimonies
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in court needless to say for nsync
accountants must have some real good
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knowledge of what we call as legal
proceedings
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now why is forensic accounting required
it's one big question see the whole
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fiasco of the occurrence of the
financial frauds have raised the
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questions on the integrity of the
accounting practices the practices so
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this cases mean that you know the
corporations have failed to show the
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accurate information to their investors
and provided approve inappropriate
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disclosures of the financial statements
scandals and frauds like you know
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tarnish the image of the company and
they'd lose shareholders as well as the
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public confidence quality of the
financial reporting is crucial for the
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development of the efficient capital
market therefore it is very imperative
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to bring in the microscopic level of
what we call as scrutiny and for the
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detection in the prevention of such
frauds so foreign seek accounting and a
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term that has been coined in 1946 is in
each area of investigation which has its
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own analytical procedures to unravel the
stories behind the behind this
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white-collar crimes so there's another
thing that's called application of
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forensic accounting see the world of
finance is vast and so it is the scope
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of the forensic accounting
while the basic premise remains the
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investigation of the what so-called
fraud or misrepresentation right domain
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can be varied so the financial forensic
in which investigation may fall into
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several categories the first category
that may come is the business fraud
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investigation now this is one of the
most crucial application of the forensic
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accounting business and business
investigation basically refers to a
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range of scrutiny that is involving
asset identification and recovery due
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diligence review and you know tracing
misappropriated funds like forensic
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intelligence gathering through
interviews and other evidences on the
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other hand that the employee fraud
investigation usually involve procedure
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to determine the presence of the front
its nature its contem and it involves
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the intelligence measures that may
enable the identification of the
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offender this investigation often
requires interviews of the employees who
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had access to the funds collection of
the other evidences and a detailed
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review of the documentary information
second is the what we call as the
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partnership and the shareholding dispute
the most usual issue that often crops up
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in regarding the compensation and the
benefits received by each of the
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shareholders or the partners in case of
the dispute the investigation process
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often it involves a detailed scrutiny of
many years of accounting financial
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records to quantify the issues that have
brought out in the dis insurance claims
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insurance policies across the globe that
refers largely on account of the terms
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and conditions however it is imperative
to calculate the III call as the
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economic range or the economic damage to
settle the claim so solving this kind of
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cases involve detailed analysis of the
policies to examine the coverage issues
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in the most appropriate method of
quantifying the loss so forensics
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accounting accountant may be asked to
assist either an issue in insured or
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uninsured in conducting the
investigation for the settlement of the
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case so in corporate
parlance this type of assignments
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include property and business losses and
employee and fidelity claims forth then
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there is a thing called economic losses
so business economic losses typically
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include like in a breach of contract
construction claims trademarks patent
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infringement product liability claims
and some sort of losses that are
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resulting from the breach of non-compete
agreements foreign accountants they
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probe into the terms and conditions with
these circumstances leading up to the
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dispute and the work of the
quantification of the losses arising out
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of it so those are the part of it then
there is a thing called personal
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insurance so another area where the
forensic accounting finds a great deal
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of application is insurance sector for
personal use so foreign Singh accountant
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has the ability to quantify you know
what is called as the economic damages
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not at the vehicle accidents or case of
the medical negligence so forensic
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investigation is usually preferred in
this cases because they have thorough
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knowledge about the legislative process
and relating to the settlement of the
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claims in this cases forensic accounting
covers the review of the insurance
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policies to determine you know coverage
you can say of calculating the potential
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losses well I have discussed her so many
types probably you know the top
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accounting firms for this kind of
forensic are PWC honest and young
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Deloitte KPMG Grant Thornton video and
so on and so forth those are the top
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firms that are involved in this process
of forensic audit so in final conclusion
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despite of all the odds differencing on
accounting is it's here to remain as
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long as there are no financial crimes
most important financial crimes like
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Enron so according to the PwC in 2014 ,37%
of the global business have
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reported being impacted by the economic
crimes indicating a significant rise of
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30% in 2009 so the increase in
economic crimes rate moderately
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justifies the industry's rising demand
at the forensic accounting services
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industry that entails the fraud
prevention and detection and other
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offerings among the products that's it
for this particular topic so that's it
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for this particular topic if you have
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