What is Forensic Accounting?

Forensic accounting can be defined as assistance in disputes regarding allegations or suspicion of fraud, which are likely to involve litigation, expert determination, enquiry by an appropriate authority, and investigations of suspected fraud, irregularity or impropriety which could potentially lead to civil, criminal or disciplinary proceedings. The focus is primarily on accounting issues, but the role of the forensic accountant may extend to more general investigation which includes evidence gathering. It is because of the fact that by definition, forensic assignments are related to judicial or quasi-judicial dispute resolution, that the forensic investigator requires a basic understanding of the applicable statutory and common law, the law of evidence and the law of procedure. The most competently conducted investigation will be of no value to the client should the evidence gathered be ruled to be inadmissible or the expert accounting witness be found to fall short in respect of the requirements of expertise, credibility, or independence.