According to AKTU Syllabus

1. FORENSIC ACCOUNTING
Presented By:
Vikash Barnwal
Assistant Professor
Kashi institute of technology

2. INTRODUCTION
“Forensic accounting is the application
of accounting principles, theories, and
discipline to facts or hypotheses at issues
in a legal dispute and encompasses every
branch of accounting knowledge.”

3.  Forensic accounting is a type of accounting
that investigates financial information for
potential evidence of crimes. Forensic
accountants use accounting, auditing, and
investigative skills to understand whether a
person or company has committed financial
misconduct, such as embezzlement or fraud.

4.  Forensic accounting is the investigation of
fraud and misrepresentation. Forensic
accountants conduct an in-depth analysis of
financial data. They document the entire
investigation and report findings to a court of
law. Forensic accountants often testify to the
veracity of their findings.

5. The Association of Certified Fraud
Examiners described financial accounting
as , “A set of skills used in potential or actual
civil or criminal cases, including generally
accepted accounting and auditing ones;
determining loss of profits, revenues,
property, or damage; and assessment of
internal controls, fraud, and everything else
that leads to the applying of accounting
knowledge to the legal system.”

6.  According to AICPA, “Forensic accounting
is the application of accounting principles,
theories, and discipline to facts or
hypotheses at issues in a legal dispute and
encompasses every branch of accounting
knowledge.”

7. NEED FOR FORENSIC ACCOUNTING -
1. Failure of audit :- Internal audit and audit
committee as a point of the management function
could not through light on the different facts and
other hidden aspects of corporate fraud.
2. Defective audit appointment method :-
Rotation of the statutory auditor touches as part of
the problem while it refuses emphasis but it
adversely need longer duration. The method of
appointing the statutory auditors used not
foolproof as its books collusion and lobbying.

8. SCOPE / AREAS OF FORENSIC ACCOUNTING -
 1. Litigation support and investigation -
 The former represent the factual presentation of economic issues
related to existing litigation. In this capacity, the forensic
accounting Sustained by parties involved in the legal disputes
and can assist in resolution dispute, even before they reach the
contraction, if dispute researchers the court room, the forensic
accountant may testify as an expert witness.

 2. Dispute resolution -
 On the other hand the latter is the out of determining, whether
criminal matters such as securities fraud which include financial
settlement, identify theft and insurance fraud etc. in such
Complex cases forensic accountants make some
recommendations / actions that can be taken to minimize future
risk or loss.