Forensic
accounting has emerged as a special skill in the context of
financial and accounting control in an organization. It uses
accounting, auditing and investigative skills to conduct a
thorough examination of a company's financial statement and
as a result provides an accounting analysis that is suitable
for litigation. It is considered as a professional assistance
provided by a nonlawyer to a lawyer in a litigation process.
Forensic
accountants are expected to have a good understanding of business
information, financial reporting system, accounting and auditing
standards and procedures, investigative techniques and litigation
process, in order to play an effective role in solving problems.
In today's scenario, apart from analyzing a fraud or an error
already committed, forensic accountants are also playing a
proactive role in risk and fraud reduction by getting involved
in designing and amending statutory audit procedures, advising
audit committees and also assisting in investment analysis
research.
In
the above context, it is imperative to understand the role
of a forensic accountant in the design and implementation
stages of Enterprise Resource Planning (ERP) that basically
serves to integrate the various departments in an organization
for better performance. It is also important to know how a
forensic accountant can make use of various software applications
and the Accounting Information System (AIS) to reduce frauds
and errors in various processes. |
