The benefits from forensic accounting studies are numerous. Fraud either by companies or employees is the most frequent circumstance requiring such expertise. Forensic accounting is becoming a cornerstone in safeguarding corporate assets and business interests in an ever changing environment. Evolving technologies provide expanding opportunities for perpetrating and concealing fraud. ID theft has become one of the most chronic problems for both companies and individuals to overcome. To deter fraud in this environment the investigative techniques must continue to evolve to counter these opportunities.
Forensic accounting is now recognized as an integral part in litigation and investigating. A forensic professional is able to quantify the damage sustained by parties involved in legal disputes and can assist in solving disputes, before they even reach the courtroom. If the dispute does reach the courtroom the forensic accountant is an expert in the field and can testify.
The principle process in the corporate environment consist of Prevention and Detection.
Prevention of fraud is the most central concept in the field of forensic accounting. It is vital for a company to protect against certain situations that could damage or destroy corporate assets or business opportunities. Prevention is an on going process that every company needs to take to preserve and maintain a successful business. The prevention process involves performing internal control evaluations and then developing a solid internal control structure custom fit for your business and industry. Policies and procedures are well documented to provide effective training on fraud awareness and future preventive techniques.
Another foundation of forensic accounting is the Detection of fraud. It is common that businesses are run successfully without ever realizing that their full potential will never be reached. This can happen because certain measures have not been taken to detect issues or instances that encumber a company’s full capability. It is irrelevant what level of maturity your company is in, fraud exists at all stages.
The Prevention and Detection of fraud is a continuous on-going process used by companies through the use of forensic expert.