Accounting is one of the core fundamentals and the basic way to determine what a business thinks and acts. The action of any business can be measured by looking into its book of accounts. Today, the branch of accounting is not limited to solving balance sheet or profit and loss account. Along with the simultaneous increase of technological development, the illegal proceedings that take place in a company can be traced. The accounting services domain has extended its reach into the deeper analysis that gave birth to various accounting forms, and one such form is ‘Forensic Accounting’. Business entities, be it a small or large organization, are slowly adopting these forms as it provides multiple benefits to a business entity. If you own a business entity, it becomes essential for you to know regarding the different developments that can benefit your company to a great extent. This article will take you through the entire domain of Forensic Accounting. Let’s proceed by understanding the basics…
What Is Forensic Accounting?
In general, the term ‘forensic’ deals with the application of scientific methods to initiate an investigation dealing with any crime. The same techniques and processes are adopted by the accounting department to resolve the accounting issues that a company goes through. This branch of accounting helps business entities to look into core matters, figure out any reasons for mismatch, and fix them. The need for forensic accounting has been reaching widely due to the benefits that it provides to corporations, which you will read later in this article.
Forensic audit is a process conducted by a forensic investigator. A certified fraud examiner handles the disputes and takes necessary steps to sort them wherein he combines the accounting knowledge along with the investigating skills while supervising the company accounts. Certain functions that are carried during the investigating process involves:
- Forensic research to trace funds and recovery of assets
- An in-depth analysis of financial data
- Prepares reports based on the analysis conducted
- Generate analytical data for litigation purpose
Apart from the introductory process, certain core procedures are involved in a forensic audit.
Procedures Involved in Forensic Audit
- Federal Regulations Procedure
- Litigation Support Procedures
- Investor Protection Procedures
- Fraud Detection and Prevention Procedures
- Report Creation Procedures
- Re-calculation and Re-Performance
The procedures are to be applied accordingly at each step so as to clear the conflicts that arise in the accounting books. By opting for forensic accounting, you will be able to obtain the benefits stated below.
Benefits of Forensic Accounting
- Minimizes losses
- Improves efficiency
- Reduces exploitation risk
- Averts legal problems
- Solves contractual disputes
- Helps in criminal investigations and defense
- Aids in the formulation of economic policies
- Improves brand reputation
- Leads to sounder investment decisions
- Simplifies litigation and business valuation
JAXA Forensic Accounting Services
At JAXA, we aim at designing the best financial structure to deliver a high cash-flow framework system. We provide a wide range of services that include:
- Financial data analysis
- Evidence Analysis
- Compiling information
- Tracing illicit funds
- Damage Assessment
- Due Diligence Reviews
- Business Valuation
- Report Generation
We are a financial consulting firm based in Dubai, and assure our clients in providing reputation building, maximizing the credibility, and standing out from their competitors. We hold ISO 9001-2008 certification, and follow the International Financial Reporting Standards (IFRS) to main the professionalism in our deliverables that made us one of the top audit firms in Dubai. Currently, we hold more than 750+ clients at a global count that includes multinationals, limited liability, offshore companies etc. At Jaxa, our forensic experts provide you the forensic accounting related services, cash flow forecasts and projection reports satisfying your requirements and that will help your business to grow further. If you are looking forward to initiating the process, do contact us. We’d be happy to assist you.