Manual on Forensic Accounting

The popular television show, CSI: Crime Scene Investigations has been on the air for 12 years, and it has brought forth the behind-the-scenes actions of criminal investigations, even if its portrayals are not always scientifically accurate. This has caused an interest in the forensic sciences that has led most people to a skewed view of how a criminal investigation actually works. The reality of a criminal investigation is that it is generally more tedious and difficult than the theory of criminal investigation would have you believe. By examining the forensic and investigative procedures of the case of Pamela Foddrill, it is apparent that the theory of criminal investigation was not representative of the procedures concerning examination

| (TCO A) An AICPA committee in 1986 broke forensic accounting into two broad areas:

2 Managing fraud risk: The audit committee perspective Fraud in a fi nancial statement audit

Forensic evidence has been shown to be reliable due to many factors of evidence such as DNA, blood, fingerprints, etc.; however, many cases have shown that

The foundation of all Forensic practice is in practicing, maintaining and protecting integrity and continuity of evidence as it establishes credibility and reliability in court and makes certain that any fabrication, misunderstanding, bias’s or even mistakes, have not occurred.

generally accepted accounting standards for private-sector entities, including businesses and not-for-profit organizations. A recognized expert in forensic accounting, Mr. Siegel has 17 years of experience in diverse and global industries that include technology, media, telecommunications, healthcare, retail, and insurance. Prior to his appointment to the FASB, he led the Accounting Research and Analysis team at the RiskMetrics Group in Rockville, Maryland (FASB.org, 2009f).

Accountants are relied upon to be trustworthy and maintain high ethical standards. It is because of the nature of the profession that puts them in a position of trust with people who rely on their professional judgment and guidance in making decisions. These decisions are extremely important in accounting and more so that companies that have high ethical standard or main good ethical culture spend enormous time to train the staffs about the conduct that is expected of them.

AICPA Code of Professional Conduct principles prevents vises such as fraud that are experienced in accountancy field. Audit is the best measure of the effect of the fraud that are imposed to investors by accountants. The relationship of the investors and account holders are supposed to be affirmed through auditing to ensure accounting principles are upheld(Weirich, Pearson, & Churyk, 2010). Improper loss of the funds through propagation of the accountant officer should be treated as fraud and criminal activity that should lead to prosecution. Therefore, the paper seeks to relate two fraud cases that have been audited and presenting AICPA Code of

It is indisputable that the progression of forensics technology and knowledge has greatly improved the capability to catch criminals. Forensics of the past did not include the tools or knowledge that we now have. Forensics is not a perfect science nor has it ever been; however, we are closer to perfecting it than ever. Every criminal leaves behind some traces of evidence; it is up to the professionals to find and analyze it to solve cases. Looking at the timeline of forensic technology of the past to the present it is evident that it has evolved dramatically and will continue to do so.

In the present day forensic accounting plays a huge role in many of the court cases publicized by the media. With the spotlight on the profession, this is a good opportunity to discuss the following topics:

The auditing firm has been in engagement with the company throughout the period when the fraud was being committed. One of the common and clear indicators of possible fraud was the company’s cash flow statement. The company experienced positive growth in its profits from the year 1996 through to the year 1998. However, a close analysis of the cash flow statement shows that the company had experienced negative figures of cash flow from both operating and investing activities and positive cash flow from financing activities which would not sufficiently offset the negative cash flows from operating and investing. It is therefore evident

a. “Analytical procedures are an important part of the audit process and consist of evaluations of financial information made by a study of plausible relationships among both financial and nonfinancial data. Analytical procedures range from simple comparisons to the use of complex models involving many

There are many different avenues that one could take in the field of accounting. It is a lucrative career with many areas of interest to be followed. I have chosen Forensic Accounting to further review and research. This paper will define forensic accounting, describe what it takes to be a forensic accountant, give some statistics about forensic accounting, and give my feedback on this potential career path.

Accounting is the language of business. It is a profession that is being guided by principles, concepts, conventions, laws, etc. All these fundamental building blocks serve as common and general compasses to all practitioners of the profession. In some cases, they are nation-wide tailored, while in other cases, they are universally tailored. Accounting as a living, practical, dynamic and realistic profession covers so many areas of social, economic (business), and governmental activities. Surely, any endeavour that involves monetary and material activities create a room for the services of Accounting. Many of the human endeavours for which the accounting profession plays significant (some times inevitable) roles include; Banking, Insurance, Manufacturing, Farming Contracting, Oil and Gas, Mining, Transportation (Air, Land and Sea), Educational Institutions, Churches, Ministries, ICT, Hire Purchase, Local Government Authorities, Estate Businesses, Export and Import Businesses, Bill of Exchange Transactions, Royalties Transactions, Consignment Transactions, Stock Market Transactions, Sports, Entertainment, Hospitals and Hospitality Industry, etc.

Accounting skills are useful for companies and individuals who are trying to maximize their profits and maintain a competitive advantage, but forensic accounting can help bring justice and peace of mind for many others by illuminating financial processes that can help explain criminal actions and behaviors. The purpose of this essay is to describe the five most important skills a forensic accountant may possess in order to become successful. This essay will describe each one of these traits and describe its application to business operations. Next the essay will describe the role of the forensic accountant within a courtroom environment and then also discuss the legal responsibilities that these professionals have to obey in the course of their work. Finally this essay will highlight two real world cases where forensic accounting provided vital evidence in a legal court case.