Forensic Accounting

Brief Description

Forensic accounting is a specialized field that combines accounting, auditing, and investigative skills to examine financial records and transactions.

Common goals of forensic accounting are: to uncover fraud, embezzlement, or other financial misconduct, litigation support (e.g. bankruptcy or insolvency, insurance claims), damage quantification, and risk management.

Forensic accountants often work in legal settings, providing expert testimony and helping to resolve financial disputes.

Authorities For Further Research

Forensic accounting follows the same practices as the accounting standard utilized by the client. So authorities may include:

(i) The Financial Accounting Standards Board (FASB) sets accounting and reporting standards for public and private entities following Generally Accepted Accounting Principles (GAAP) in the U.S..

(ii) The Governmental Accounting Standards Board (GASB) establishes GAAP for U.S. state and local governments.

(iii) The International Accounting Standards Board (IASB) develops International Financial Reporting Standards (IFRS), used globally to enhance financial reporting.

(iv) The Federal Accounting Standards Advisory Board (FASAB) issues standards for the U.S. federal government.

(v) The Securities and Exchange Commission (SEC) has the authority to set and enforce accounting standards, particularly for public companies adhering to GAAP.

(vi) The Public Company Accounting Oversight Board (PCAOB) oversees audits of public companies.
State Boards of Accountancy regulate licensed accounting professionals within their states.

(vii) The American Institute of Certified Public Accountants (AICPA) develops standards for audits of nonpublic entities and sets ethical requirements for its members.

(viii) The National Association of State Boards of Accountancy (NASBA) coordinates state boards and promotes uniform regulations.