Financial Crimes

1610 Words Nov 20th, 2008 7 Pages
As the complexity and scope of business has expanded through the world, the need to track financial information has grown. There has been a corresponding increase in illegal financial activity according to separate surveys by the U. S. Department of Justice, Pricewaterhouse-Coopers, and the Association of Certified Fraud Examiners (ACFE) (Houck, Kranacher, Morris, Riley, Robertson, & Wells, 2006). An understanding of effective fraud and forensic accounting techniques can assist forensic accountants in identifying illegal activity and discovering and preserving evidence. Forensic accounting is a science that deals with the application of accounting facts gathered through auditing methods and procedures to legal problems usually dealing …show more content…
He was finally brought to justice for tax evasion through the work of Elmer Irey, an accountant with the Internal Revenue Service, as much as through the efforts of Capone’s legendary nemesis, Eliot Ness. Since employee and management fraud, theft, embezzlement, and other financial crimes are increasing, accounting and auditing personnel must have training and skills to recognize these crimes. In addition, high profile corporate scandals, such as Enron, demonstrate the need to better prepare accounting graduates in the area of fraud prevention, deterrence, detection, investigation, and remediation. Forensic accounting involves the application of special skills in accounting, auditing, finance, quantitative methods, law and research. It also requires investigative skills to collect, analyze, and evaluate financial evidence as well as the ability to interpret and communicate findings. Forensic accounting is the intersection between accounting, investigation, and the law. Fraud examination is a methodology for resolving fraud allegations from inception to disposition, including obtaining evidence, interviewing, writing reports, and testifying (Crumbley, Heitger, & Smith, Forensic and Investigative Accounting, 2005). Whether a forensic accountant works in a civil or criminal arena, the professional must have a working knowledge in accounting concepts, auditing concepts, transaction processing
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