Forensic accounting is the utilization of accounting, auditing and investigation techniques to conduct a thorough analysis of the finances of an individual or a business. Forensic accounting is the means by which fraud and other nefarious activities are discovered. Most notably it is used to convict fraudsters who swindle honest investors by inflating the incomes of their publicly traded companies.
There are three main take-aways from understanding forensic accounting:
- Anyone can become a fraudster, no matter how moral they are. In most cases, people who commit financial crimes start out as honest individuals but eventually (either through greed, influence or negligence) find themselves committing fraud.
- When investigating fraud, you must suspend your emotions towards the individual in order to conduct a thorough and unbiased investigation. What forensic accountants look to do is find crime & inconsistencies, not to make a moral judgement against another human being.
- Pay attention to everything. It is nearly impossible to swindle a diligent man out of their money. Keep your eyes open and pay attention to everything when it comes to your money.
For more information please feel free to contact us at 778-989-5280 or email us at firstname.lastname@example.org & if ever in doubt, reach out to a trusted CPA (Chartered Professional Accountant) for help and they will ensure that you don’t fall into any trouble.
If you would like to read more about Forensic Accounting, Click here.