The forensics of accounting: Forensic Accounting   by Nasreen Haque

in Finance / Accounting    (submitted 2010-02-16)

When most people think about accounting, they think about the numbers game. What went where and how was money spent during the year? Though that is certain one part of the equation, accounting is about much more than just simply charting what has happened. There is a part of accounting that takes a look at how money was spent and digs a little bit deeper. It is investigative accounting of sorts that keeps taps on crime and makes sure that no wrongdoing is taking place. This type of accounting is known as forensic accounting, and it is one of the most important forms of accounting out there today.
Forensic accounting and the courtroom
The term forensic is applied in order to emphasize the fact that the information derived from the process can be used in a court of law. This means that a forensic accounting specialist takes all of the right legal measures when looking for information. When presented in front of a jury or a judge, this information is admissible and it can be a great help for attorneys of one side or another. There are many different types of cases where forensic accounting can come into play, most of them in the corporate realm.
What is forensic accounting used for?
The most common types of cases in which a forensic accountant might work are proceeds of crime cases. In those cases, the accountants figure out if a person benefited from a committing a crime. If it is found that this happened, then that person could be sued for the money or the court could order the person to pay a fine equal to what they gained. These cases require accountants to sort through all of the different documents and uncover evidence that makes it abundantly clear what happened in a particular case.
Forensic accounting and new technology
One of the things that makes forensic accounting such an innovative idea is the fact that many different technologies are used to make it happen. These accountants make use of computer systems and the latest IT data systems, as well. This way, they don't miss out on analyzing the data and they are better able to process large amounts of evidence. Many large companies employ teams of forensic accountants to analyze their own books and records, in order to see if someone is stealing money or putting the company in any legal danger.