What is Forensic Accounting?

Forensic accounting is a form of investigative accounting which examines financial records in order to find evidence for a lawsuit or criminal prosecution.

How Does Forensic Accounting Work?

Forensic Accounting is sometimes referred to as forensic auditing.

Forensic accounting integrates an understanding of accounting principles with investigative techniques to determine whether the actions behind financial records and statements are suspicious.

Individuals certified to perform forensic accounting produce findings used in legal proceedings concerning fraud, embezzlement and financial disputes.

Why Does Forensic Accounting Matter?

Forensic accounting is a valuable investigation technique that allows information found in a company's financial statements and transactions to be presented in a way that is suitable for court.

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Paul Tracy
Paul Tracy

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 3 million monthly readers.

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