Presented by- Saloni Parakh

3rd Year BBA(Finance)

Roll-102

•To recognize the need for forensic accounting in the business world today.

•To highlight the problems and prospects of forensic accounting.

•To understand how to utilize common forensic techniques to recognize schemes and scams.

•To examine the possibility of reducing the occurrence of fraud cases using Forensic Accounting.

OBJECTIVES

Accounting analysis that can uncover possible fraud which is suitable for presentation in court.

Combines Accounting with Information Technology.

It is a Scientific Method for presenting fraud matters.

Forensic accountants are experienced auditors, accountants, and investigators of legal and financial documents

They are hired to look into possible suspicions of fraudulent activity within a company; or are hired by a company who may just want to prevent fraudulent activities from occurring.

WHO RETAINS A FORENSIC ACCOUNTANT???Forensic Accountants are often retained by the following

groups: Lawyers; Police Forces; Insurance Companies Government Regulatory Bodies and Agencies; Banks Courts

BASE OF PIZZA: ACCOUNTING KNOWLEDGE

MIDDLE LAYER: DISPERSED KNOWLEDGE OF AUDITING,INTERNAL CONTROLS, RISK & FRAUD ASSESSMENT

TOPPINGS: UNDERSTANDING LEGAL ENVIRONMENT

CHERRY ON THE TOPPINGS:STRONG SET OF COMMUNICATION SKILLS

THE SATYAM FIASCO

DETECTION OF SUCH “WHITE COLLAR CRIMES”

DEVELOPMENT OF STRONGER AUDIT REGULATIONS

KPMG ALONG WITH DELOITTE WERE TASKED WITH RESTATING THE ACCOUNTS OF SATYAM.

Forensic accounting is not new. Accountants have provided fraudulent financial records investigation and litigation support to corporations for decades.

Forensic accounting bring special skill sets, logical perspective as well as experience in internal accounting of the firm.

They have interviewing skills to find fact from witnesses.

They have relevant language skills and ability to meet geographically diverse investigation.

They have a strong sense and ability to figure out the proceedings and behaviour during scams.

CONCLUSIONTo curb the ever increasing fraudulent activities, Forensic Accounting has become an essential Pre-requisite because it :

1. Provides litigation support service with appropriate provisions.

2. Institutes good corporate governance in entirety.

3. Encourages development, employment and the standard of living of the people.

4. Has scope for separate niche consulting.

AICPA, Special Report, Forensic Procedures and Specialists: Useful Tools and Techniques

Association of Certified Fraud Examiners, Fraud Examiners Manual, Vol. II, pp. 10-15.

Association of Certified Fraud Examiners, Fraud Magazine March/April, May/ June, July/August 2009

Association of Certified Fraud Examiners, Understanding the basics of Mortgage Fraud, Second Edition.

Bruce Frey, Statistics Hacks. B.R. Sharma: Banks Fraud, Universal Publication G.Jack Bologna e.t Robert J. Lindquist- Fraud Auditing and Forensic

Accounting, Third Edition. Howard Silverstone e.t Howard R. Davia, Fraud 101,2007, Techniques and

Strategies of Fraud Detection, Vol.III, pp. 724-884. Joseph T Wells, 2005, Corporate Fraud Handbook, Prevention and

Detection, Second Edition Martin T. Biegelman e.t Joel T Barton, 2004, Executive Roadmap to Fraud

Prevention and Internal Control.