Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
This means laying out for the jury and the judge the role of different parties and how this contributed to illegal activities. It is at this point when everyone can understand the full context of the case. (Singleton, 2010) (Golden, 2011)
Analyze the legal responsibility a forensic accountant has while providing service to a business.
The legal responsibility of a forensic accountant is to determine when fraudulent activities have taken place and report them to stakeholders. Moreover, they play a role in establishing different safeguards which are preventing this from happening. The combination of these factors, is illustrating how they are at the forefront of protecting the accuracy of the financial information provided by the firm and its practices. (Singleton, 2010) (Golden, 2011)
Research two (2) cases where forensics accountants have provided vital evidence in a case. Summarize the cases and the importance of the forensic accountant's role during each case.
Two cases where forensic accountants have provided crucial evidence are with Enron and the Bernard Madoff scandals. In the case of Enron, no one knew who was responsible or the role of different individuals. This was shocking as the company had reported false information about their earnings and it was the 6th largest corporation in America (based upon market share). Forensic accountants played a role in determining where the fraud took place and the perpetrators. This led to...
(Fox, 2004)
As far as Bernard Madoff scandal is concerned, forensic accountants identified how the Ponzi scheme worked and what allowed it to continue for 18 years. This was after it was announced that this respected Wall Street financer and former CEO of the NASDAQ. Told his son a how the family business was nothing more than a con. Actuaries played an important part in determining what enabled the scheme to continue for so long. At the same time, they have been instrumental in helping the trustee to identify and go after key assets. (Lewis, 2011)
Conclusion
Clearly, forensic accounting can assist firms with mitigating risks. This is because it provides procedures for identifying and preventing fraudulent activities. Moreover, it gives executives the tools to deal with these threats when they are small. In the future, this helps firms to increase productivity and protect their brand image.
References
Fox, L. (2004). The Rise and Fall of Enron. Hoboken, NJ: Wiley.
Golden, T. (2011). A Guide to Forensic Accounting Investigation. Hoboken, NJ: Wiley.
Lewis, L. (2011). Con Game. New Brunswick, NJ: Transaction Publishers.
Pedneault, S. (2012). Forensic Accounting. Hoboken, NJ: Wiley.
Forensic accounting is a special subsection of accounting that goes beyond the typical job description of an accountant. Forensic accountants use their work in courtroom and other legal settings to help. Their primary roles are litigation support and investigative accounting (Zysman, 2012). To do this, forensic accountants combine accounting, auditing, and investigative skills. However, conducting investigations is only one component of a forensic accountant's job description; they also have to
roles of forensic accountants in preventing and detecting fraud within a business community. The paper highlights the requisites and basic responsibilities of a forensic accountant. The paper also makes references on the special cases where forensic accountants have assisted in fraud detection and prevention. Overview of Forensic Accounting Forensic accounting is the specialty area of accounting used to train an individual to develop the special accounting skills to detect and prevent
Goldman Sachs Forensic accounting Fraud at Goldman Sachs The recent recession and financial scandal brought to light many unethical, illegal, and quasi-legal practices of the major investment firms. One example of this was the Goldman Sachs securities fraud case, in which the firm was accused of creating and selling bundled mortgage investments in an instrument that was intended to fail and which the company' bet against' with a desire to make a profit
Assets in the investment portfolio were overvalued. Financial transactions were structured to report smaller amounts of debt and create the appearance of greater cash flow. Financial results were represented in a false and misleading manner. Forensic accountants also played an important role in the Enron case by doing audits and investigating accounting practices to gather evidence of how the fraud was performed. They played vital roles in the court room
Finance/Management Accounting The topic of finance and managerial accounting inclusively, are broad and incorporate a critical skill set in the modern day business student. Finance involves corporate and investment finance and managerial accounting is complimentary as it involves cost accounting and essentially stresses cost management. Together, these topics provide a comprehensive financial analysis skill set yielding capability in solving the day's most critical business financial quandaries. The literature review will seek
In the late 1990s, this was not a problem as the stock was continuing to climb to all-time highs. However, once the economy began to slow, is when this strategy backfired by forcing them to issues more stock to cover these losses. As shares were declining, many investors became weary of continuing to participate in these activities. (Healy, 2003) In late 2001, these activities were brought to the attention of