As businesses progress, they might become a part of legal disputes. This may be due to illegal or wrongful activity in the industry or any other reason.
As the business ecosystems are becoming increasingly complex, there are more and more chances of companies becoming a part of legal disputes. This is where Forensic Accounting in Dubai comes to the rescue.
What Does One Mean by Forensic Accounting in Dubai?
Forensic Accounting in Dubai can be defined as the process in which an examination of business accounts is conducted. The results of this examination are then presented in a court of law.
Different activities are utilized to examine the business, such as Company Audit, Financial or Company Accounting, and other investigative skills. For example, a forensic accountant has training in the field of both Finances as well as investigative techniques.
This will allow him to understand the business's financial jargon and learn about fraud or embezzlement in the company. After the examination, they will produce a report detailing all the various findings of the accountant or team of accountants.
These findings will be further used in a court of law to either prove malpractices or to acquit a company of such allegations. Mainly there are two different types of Forensic accounting procedures:
1. Litigation Support Services
Here the accountant will calculate the total damages each party experienced and help settle the dispute outside the court. In addition, the accountant can act as an expert witness if the argument reaches court.
2. Investigative or Fact-Finding Services
In this accounting, the accountant must understand the business activities and uncover fraud or embezzlement.
What Are the Different Techniques for Forensic Accounting?
Accountants use various investigative techniques worldwide to discover a business's vital points. Some of these techniques are as follows:
- One of the simplest yet effective techniques of investigating is conducting background checks. With company background checks, the accountant can see past transactions and deals, which can tell much about the company.
- Gathering information from trustworthy sources is another simple yet effective solution for understanding the nature of the business. However, it is to be kept in mind that information received only from reputed, and trusted sources should be taken as there is a guarantee that information from such sources will be correct.
- One of the complex investigation techniques is to go undercover and find the information first-hand. One can go undercover physically or use any electronic means to do this snooping and monitor and track the target emails.
What Are the Reasons to Implement Forensic Accounting in Business?
There are significant reasons why forensic accounting should be implemented for businesses.
- First, they provide awareness for the business and help avoid fraudulent activity.
- In case an asset has been misappropriated, forensic accounting can help in remedying the situation.
- It can help combat growing threats such as Terrorism and counterintelligence.
- It provides greater insight into the present and helps to understand your business.
To read these reasons in detail, read the blog "Reasons to Implement Forensic Accounting in Business."
JAXA Forensic Accounting Services in Dubai
At JAXA, we aim to design 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 we assure our clients of providing reputation building, maximizing credibility, and standing out from their competitors. We hold ISO 9001-2015 certification and follow the International Financial Reporting Standards (IFRS) to central professionalism in our deliverables, which 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 Services in Dubai, cash flow forecasts, and projection reports satisfying your requirements, which will help your business grow further.