FORENSIC ACCOUNTING

• Forensic Accounting is the combination of accounting, auditing and investigating skills in detecting a fraud

• It is a great weapon against accounting frauds and malpractices in corporate world

• Forensic Accounting developed as early as 1995 in USA but after Harshad Mehta, Satyam and Kingfisher Airlines case the same has gained proposition in Indian context also.

Activities carried by Forensic Accountant

• Investigating and analysing financial evidence• Developing computerised applications to assist in

the analysis and presentation of financial evidence

• Communicating their findings in the form of reports, exhibits and collection of documents

• Assist in legal proceedings including testifying in courts, as an expert witness and preparing visual aids to support trial evidence

INDICATORS OF FRAUD

• Large unexpected losses• Non compliance with corporate policy or

internal controls• Employees apparently living beyond their

means• Inventory shortages remain unexplained and

poorly investigated• Missing and altered documentation