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> Demand of Global Economy and
International market.
Over
Ø view
ØForensic accounting have been around for nearly 200 years
ØFound in 1824
ØFBI decided to use forensic accountants and employed
nearly 500 such agents during World War II.
ØFirst institutions to use the services IRS (International
Financial Statistics)
ØGAAP ( General Accepted Accounting Principles) and tax laws
became widespread and mandatory.
ØCompanies that manipulated accounting rules to boost their
earnings in a stock market gone wild.
ØThe year 2002 the annals of accounting history as
the Year of Truth
Ø when companies disclosed billions of dollars of financial
fraud.
ØSEC issued earnings restatements between the years 1997
and 2002.
ØThe FASB ( Financial Accounting Standard Board) and
the SEC ( Security and Exchange Commission ) scrambled to
find solutions to the problem of such ubiquitous financial
fraud.
Forensic
Accounting
ØForensic accounting is
hardly a new field in
accountancy.
ØForensic accountants as
preventative measures as the
demand for trustworthy
financial statements increases
in the wake of the recent
"Forensic accounting", provides an accounting
accounting
Ø
scandals.
analysis that is suitable to the court which will
Ø
form the basis for discussion, debate and
ultimately dispute resolution.
Satyam scandal
Conclusion:……………………….
The importance of the forensic
accountant’s role in the detection of
fraud is continuously growing. Armed with
combination of skills, these financial
detectives are today important assets
to modern legal teams. In the backdrop
of increasing levels of frauds, the
demand for forensic accountants is bound
to substantially increase in the future.
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