In the present day forensic accounting plays a huge role in many of the court cases publicized by the media. With the spotlight on the profession, this is a good opportunity to discuss the following topics: 1) Five skills that a forensic accountant needs to possess.
2) The role of a forensic accountant within a courtroom environment.
3) Analyze the legal responsibility a forensic accountant has while providing service to a business.
4) Examine two cases where forensic accountants have provided vital evidence in a case, summarizing their importance to the case.
The word forensic is defined as relating to the use of science or technology in the investigation and establishment of facts or evidence in a
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This is not to say that forensic accountants can only be effective when employed by the state or regulatory commissions to conduct investigations. Private firms will often employ forensic accountants to both protect themselves from financial blunders, and to protect their financial interest when dealing with other entities. In order to be effective in this role, the accountant must possess a general understanding of the legal and regulatory environment as it applies, as well as a working knowledge of the industry and markets they are working within. (Tucker 2011) This understanding and professional experience will often be subjected to review during formal hearings, and as Avram S. Tucker says in The Numbers Tell a Story, it “is often of great interest to the court, weighing heavily in its acceptance of that expert's opinion.” Often the admissibility of an “expert” testimony, on which an entire case may rest, will be dictated by their level of relevant experience.
A forensic accountant has a lot resting on his or her shoulders. They have legal responsibilities to the firms which employee them. This starts with the need for them to have contextual understandings as outlined above, and continues with the requirement that they can adapt, think, and develop skills that are on a level different