Forensic accounting is a type of profession that uses skills and knowledge in accounting to determine the correct course of action for a legal situation that arises from financial fraud, fraudulent transactions, and other types.
What is Forensic Accounting?
Forensic accounting is the use of accounting and auditing principles in legal proceedings and investigations. Forensic accounting professionals use their knowledge of financial statements and analytical skills to provide insights that can be used in court testimony or to support other investigative efforts. Forensic accounting services can be provided by external firms, but are often contracted out by law enforcement or government agencies. You can also look for forensic accounting agency through various online sources.
Image Source: Google
Types of Typical Forensic Accounting Services
Forensic accounting is a type of accounting that is used to determine the financial position and performance of a business. Forensic accounting services can be used to investigate a company's finances, to reconstruct past financial statements, and to identify fraud.
There are several types of forensic accounting services: forensic auditing, forensic financial analysis, forensic insolvency, and forensic investigations. Forensic auditing is the most common type of forensic accounting service. It is used to audit a business's financial statements. Forensic financial analysis is used to analyze a company's financial data in order to determine its financial position and performance. Forensic insolvency is used to evaluate a company's ability to pay its debts. Lastly, forensic investigations are used to determine whether a company has engaged in fraud or other illegal activities.
Each type of forensic accounting service has its own advantages and disadvantages. Forensic auditing is the most comprehensive type of forensic accounting service because it can audit both current and past financial statements. However, it is more expensive than other types of forensic accounting services. Forensic financial analysis is less comprehensive than forensic auditing but is cheaper than profiling or litigation consulting.