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Importance of Forensic Accounting in Countries of Business Opacity: A Means to End Fraud
interviewing skills, and testifying in court as an expert witness.

In conclusion, the base of forensic accounting is a knowledge in accounting,
auditing, internal controls, risk assessment and fraud detection, a basic

understanding of the legal environment since the legal environment is essential
in order to support the litigation, acknowledging their competence, obtaining a
D diploma specialized in forensic accounting which could be given by educational
E institutions that grant certifications such as DIFA. These formal certificates can
C deepen the students’ knowledge and sharpen their skills in forensic accounting.

E
P C. Forensic Accounting in Management:

T
I Poor corporate governance will lead a certain individual or a group of people with
O the same interest to act upon it to commit fraudulent activities in the company. This

N can be reinforced by the fact that top-level management should follow the policies

of the firm, which will help the company to perform better.

Even if a company applies good internal control systems, the management will still
be the major factor influencing the implementation. Companies should look towards

new approaches rather than follow the traditional approach, as forensic accounting
may be the next best alternative in resolving problems.

Loebbecke and Willingham (1998) conclude that the probability of material
financial misstatements due to fraud is a function of three factors. The factors

include the degree to which those in authority in an entity have reason to commit
management fraud, the degree to which conditions allow managerial fraud to
be committed, and the extent to which those in authority have comply to ethical

values that would facilitate fraud commitment. These three factors show that the
management could simply commit fraudulent activities since the public including

shareholders are unaware of the countermeasure to be taken to prevent financial
crimes. It argues that there should be a set of guidelines created for the public
and management to ensure that actions should be taken when financial fraudulent

activities occur.

The main problem or issue is the constant misunderstanding of the role and
responsibility of the auditor as the public expects auditors to detect financial

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