Page 43 - November December 2016 Issue Updated 2nd
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Importance of Forensic Accounting in Countries of Business Opacity: A Means to End Fraud
witnesses. The forensic accountant may also review damaged reports and state
whether the report was put together accurately and supports the case.
Government agencies like the FBI, the Internal Revenue Service, and the Bureau of
Alcohol, Tobacco and Firearms have forensic accountants to investigate everything
from money laundering and identity-theft-related fraud to arson for proit and tax
D evasion. Law irms often use forensic accountants to help divorcees uncover their
E exes’ hidden assets.
C
E Conclusion
P
T This article deals with the importance of having an investigative system that would
I limit the frequent inancial frauds and business opacity taking place worldwide.
O In this context, forensic accounting has been presented as a tool to inhibit the
N prevailing frauds, money laundry and theft. However, to the reap better results
forensic accounting must be properly diffused and implemented with a great
emphasis on enhancing public (cultural) awareness, attributing a major role to
managements, education and governments/legislation.
For instance, the public may be unaware of the signiicance of forensic accounting
and may lack the needed knowledge for implementing it in investigative matters.
Thus, the need to incorporate forensic accounting in the culture of inancially
corrupted countries in order to create awareness of forensic accounting as an
anti-fraud tool and the means of implementing it in the investigation of inancial
statements. This step can be handled by government and legislation as primary
facilitators.
Furthermore, the importance of adopting forensic accounting in the universities’
accounting curriculum is highlighted especially that the demand for it is increasing
gradually. Such adoption has a huge potential to enhance students’ skills and
competencies and could be used as a veritable resource from which fraud could be
mitigated. Fresh graduates can as well attain a diploma in Investigative & Forensic
Accounting (DIFA) program that provides a broad range of knowledge and skills to
carry out inancial investigations.
As for managements, there is a need to develop a proper corporate governance and
43
witnesses. The forensic accountant may also review damaged reports and state
whether the report was put together accurately and supports the case.
Government agencies like the FBI, the Internal Revenue Service, and the Bureau of
Alcohol, Tobacco and Firearms have forensic accountants to investigate everything
from money laundering and identity-theft-related fraud to arson for proit and tax
D evasion. Law irms often use forensic accountants to help divorcees uncover their
E exes’ hidden assets.
C
E Conclusion
P
T This article deals with the importance of having an investigative system that would
I limit the frequent inancial frauds and business opacity taking place worldwide.
O In this context, forensic accounting has been presented as a tool to inhibit the
N prevailing frauds, money laundry and theft. However, to the reap better results
forensic accounting must be properly diffused and implemented with a great
emphasis on enhancing public (cultural) awareness, attributing a major role to
managements, education and governments/legislation.
For instance, the public may be unaware of the signiicance of forensic accounting
and may lack the needed knowledge for implementing it in investigative matters.
Thus, the need to incorporate forensic accounting in the culture of inancially
corrupted countries in order to create awareness of forensic accounting as an
anti-fraud tool and the means of implementing it in the investigation of inancial
statements. This step can be handled by government and legislation as primary
facilitators.
Furthermore, the importance of adopting forensic accounting in the universities’
accounting curriculum is highlighted especially that the demand for it is increasing
gradually. Such adoption has a huge potential to enhance students’ skills and
competencies and could be used as a veritable resource from which fraud could be
mitigated. Fresh graduates can as well attain a diploma in Investigative & Forensic
Accounting (DIFA) program that provides a broad range of knowledge and skills to
carry out inancial investigations.
As for managements, there is a need to develop a proper corporate governance and
43
