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Forensic accounting has emerged as a respectful and highly responsible profession especially after successive accounting frauds erupted through the surface and jeopardizing the financial framework in the US. Forensic accounting includes accounting, auditing and other…
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Download file to see previous pages sic accounting in the current financial crisis situation which has once again raised concerns amongst stakeholders as major US corporations are having financial difficulties and have already declared bankruptcies. The act of accounting manipulation in order to maintain interest of shareholders in companies is more likely to happen in addition to increase in other types of frauds. Therefore, forensic accountants are more than ever in the spot light for their role to tackle bigger challenges which lie ahead of the current recession.
In this research paper different aspects of forensic accounting will be discussed and its relevance as a determining factor to the outcome of accounting frauds and scandals that erupted in the previous recessions that left their trails on the US economy. This report is not limited to the US economy but it also relates to the role of forensic accounting and its due consideration provided by the regulatory frameworks of other countries by carrying out a thorough research and supplementing the report with inquisitive insight into the profession of forensic accounting and the challenges which are confronting this profession in the qualm of the current global recession and fears of yet again a stream of cases involving accounting manipulation emerging tearing down what is considered to be strictly regulated reporting framework. The reason for selecting this area of research is that cases of frauds and accounting manipulations are already on the rise as companies try to survive and retain shareholders interest in them.
The older version of forensic accounting could be traced back to 1817 when a case involving bankruptcy was being investigated in the US court and the formal use of term ‘ forensic accounting’ appeared in the article published by Maurice E. Peloubet (Crumbley, 2001). Today forensic accounting is considered to be one of the most important and highly valued branches of the accounting profession. There are a large number of ...Download file to see next pagesRead More
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