Forensic Accounting Essays (Examples)

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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 be capable of translating what they find into understandable evidence for the courtroom setting. In order to do this, "forensic accountants are trained to look beyond the numbers and deal with the business reality of the situation" (Zysman, 2012). Forensic accountants may perform a variety of different functions, including: forensic investigations, forensic audits, internal audits, and external audits. A forensic investigation is any investigation aimed at producing evidence for the courtroom. A forensic audit is an audit that is conducted….

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)

esearch 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….

The forensic accounting done on Koss reveals the importance for a business's auditing firm's responsibilities. It also shows that an auditing firm is liable to face legal charges for failing to find a fraud in their accounting activities in a business.
The forensic accounting carried out on Koss revealed that the Vice President Sujata and the former Senior Accountant, Julie Mulvane, engaged in a range of accounting fraud cover ups of Sujata's embezzlement from Koss (Singleton & Singleton, 2010). The investigation revealed that the yearly amounts stole from the company were significant for the amounts were relative to sales and shareholder's equity. The forensic audit also revealed that the lack of adequate internal controls by Koss and Michael Koss, Mulvaney was able to hide substantial embezzlements by Sujata. Internal controls at the time required Koss to approve invoices for payments of $5,000 or more. However, these systems did not prevent….

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 financial fraud. The goal of forensic accountants is to fight financial crimes within the contemporary business environment. (Patil, 2011). Typically, a forensic accountant assumes an important position in the investigating services, legal services and regulatory services within a financial environment. In performing their roles, forensic accountants attempt to identify the gaps in accounting information, internal control and compliance of a business organization. In the light of the corporate scandals, especial the Enron Corporation and WorldCom scandals, that swept the financial….

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 (Storey & Morganson 2010).

The government's case against Goldman Sachs concerned Abacus 2007-AC1, one of 25 investment vehicles specifically created to allow its clients to "bet against the housing market" (Storey & Morganson 2010). This "initially protected Goldman from losses when the mortgage market disintegrated and later yielded profits for the bank" (Storey & Morganson 2010). Ironically, one of the initial marvels of the credit crisis was the degree to which Goldman appeared to emerge unscathed, in contrast to its rivals.

"Goldman….

Forensic Accounting
PAGES 4 WORDS 1070

Ethics Forensic Science
Legal and Ethical Issues in Forensic Science

hen most people think about the conviction of criminals, scientific evidence provides some of most credible evidence available. Scientific evidence is generally considered to be fail-safe by a majority of the public. However, this is not always the case. There are many errors that can occur during the scientific accumulation of the evidence. Furthermore, there are also some cases in which the evidence is purposefully altered to provide leverage for either party in a trial to further their personal ambitions. There are also cases of negligence in which the evidence was simply not handled to the appropriate standards. hatever the case may be, when peoples' lives are on the line, there are clear legal and ethical requirements for forensic scientist that must be upheld at all times. This analysis will focus on a few examples of unethical or illegal behavior that occurred….

Fraud and Forensic Evidence
Fraud to Trial Process

The case study presents a very interesting criminal act, the use of re-directing payers to a mock PayPal, an online payment processing company, where the criminals were then able to capture the PayPal username and their corresponding passwords to access their PayPal accounts. This unusual activity was noticed by a PayPal fraud investigator who noticed there were several accounts that were being opened under the same last names. To that end, after one of the merchants reported being directed to the mock PayPal site, the fraud investigator looked into a report from a PayPal merchant. The initial gathering of e-evidence was by the fraud investigator who used two freeware network-discovery tools that were able to trace the accounts in question to a specific IP address. At this time, they also found a connection to a fake PayPal server address and a shipping address in….

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 in presenting the evidence against cross examination and scrutiny. The forensic accountants were highly valued for their objectivity in the way evidence was presented.

Accounting, auditing, investigation, business, and understanding human behavior enabled forensic accountants to gather evidence for prosecution of fraud in court cases involving fraudulent accounting practices. These are vital skills forensic accountants are required to maintain. Forensic accountants must maintain competency, due care, objectivity, integrity, confidentiality, and proper conduct at all times, whether working with a client or….

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 regulators and investors (which resulted in the eventual bankruptcy of the firm). This is illustrating how forensic accounts overlooked or ignored key areas that could have uncovered fraudulent activities. As a result, one could argue that the lack of ethics and the close relationship with company executives helped to perpetuate these abuses. (Healy, 2003)

Insider Trading

Another type of fraud that is most prevalent is insider trading. This is when executives will have specific knowledge of the financial situation surrounding the firm….

Justification of a Forensic Unit
Our Agency has just received $3 million grant from the federal government because of the efficient method that the unit employs in running the department. Additionally, the City Council has agreed to continue assisting the unit with additional funding at the end of the three years provided the department is productive and serve the citizens well. However, the department requires presenting a different budget from the previous budget. This proposal will create a new budget for the forensic unit to describe where all the funding will be allocated. The budget will consider the specialized personnel for the unit because smooth running of the unit depends on the specialized personnel.

Mission Statement of the Specialized Unit

The specialized forensic unit will deliver highest quality forensic services to all our customers, and our unit will deliver accurate service through analysis and the state of art technology. We will accomplish our….

skills that a forensic accountant needs to possess and evaluate the need for each skill.
Over the last several years, the role of forensic accountants has been continually evolving. This is because there have been a number of cases surrounding their ability to identify and prevent possible frauds. As a result, various skills must be utilized in the process that will help to improve the effectiveness of actuaries. These include: good communication, the ability to work well with others, determination, the ability to simplify information and investigative intuitiveness. The combination of these factors is allowing forensic accounts to identify and detect possible fraud. When this happens, the negative impact of these activities can be limited. (Davis, 2011)

Good communication is an important skill because it requires talking with different parties during the process of conducting any kind of investigation. This means collaborating on various ideas and identifying potential red flags. The….

This role is in response to clients' demands for a single trustworthy individual or firm to meet all of their financial needs. However, accountants are restricted from providing these services to clients whose financial statements they also prepare." (U.S. Department of Labor, ureau of Labor Statistics, 2009)
1. Public Accounting

The work entitled: "The Reality of the CPA's Role" states that modern CPAs work "behind the scenes as trusted advisors in nearly all significant business decisions. Successful accountants display the ability to think strategically and creatively and to be problem solvers and business advisors." (Douglass, 2006) Douglass states that the views of the CPA are widely varied "...whether from the viewpoint of the investing public or from the perspective of the companies that engage CPAs to audit their financial statements or perform other functions. In fact, many people not involved in the business management or accounting profession may perceive CPAs as….

career interest is accounting. Accountancy is the process of evaluating the financial information about business entities to users such as the managers of the shareholders (Elliot, & Elliot, 2004). Accountancy falls into three areas: accounting, bookkeeping, and auditing.
I choose accounting since it will give me a solid employment with a lucrative wage and this is what is important to me. I have also learned that it can be fun in the investigative way if I se it as such. The work conditions are fine -- not too tedious and best of all I can structure them at my convenience. I can work either for an institution or be self-employed. Chances for advancement also depend on myself and, best of all, I can find global opportunities in any and every business..

• Career goals and career strategy

The kind of job that I am most interested in is working in a prestigious….

Accounting Careers
Accounting is a common function in virtually every organization, irrespective of size and industry/sector of operation. The function is generally concerned with documenting business transactions and preparing financial statements. The accounting field offers numerous career paths. These include financial accounting, managerial accounting, internal auditing, tax accounting, financial analysis, payroll clerking, and forensic accounting (Bureau of Labor Statistics [BLS], 2015; American Institute of Certified Public Accountants [AICPA], 2017). Though related, each of these careers is unique in its own way. A financial accountant is involved in making and receiving payments, recording transactions, and preparing financial statements. Closely related to financial accounting is managerial accounting. While a financial accountant prepares financial statements for use by outsiders such as shareholders and lenders, a managerial accountant prepares financial records for internal use. The work of a payroll clerk is to ensure employees are paid accurately and on time. The clerk prepares, processes, and….

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 to narrow down the literature and funnel the topic into the main financial analysis area.

According to Musvoto, (2011), "Studies in accounting measurement indicate the absence of empirical relational structures that should form the basis for accounting measurement. This suggests the lack of objectivity of accounting information. Landmarks in the development of finance theory indicate the use of accounting measurement information as a basis for their development. This indicates that subjective accounting information is incorporated in finance theory. Landmarks in finance….

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7 Pages
Essay

Accounting

Forensic Accounting Is a Special Subsection of

Words: 2063
Length: 7 Pages
Type: Essay

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…

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3 Pages
Research Paper

Accounting

Forensic Accounting in Practice Over

Words: 876
Length: 3 Pages
Type: Research Paper

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…

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6 Pages
Term Paper

Accounting

Forensic Accounting Skill Set for

Words: 1680
Length: 6 Pages
Type: Term Paper

The forensic accounting done on Koss reveals the importance for a business's auditing firm's responsibilities. It also shows that an auditing firm is liable to face legal charges…

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6 Pages
Term Paper

Accounting

Forensic Accounting in Practice

Words: 2031
Length: 6 Pages
Type: Term Paper

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…

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5 Pages
Research Paper

Economics

Forensic Accounting Goldman Sachs Securities Fraud Case

Words: 1655
Length: 5 Pages
Type: Research Paper

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…

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4 Pages
Term Paper

Criminal Justice

Forensic Accounting

Words: 1070
Length: 4 Pages
Type: Term Paper

Ethics Forensic Science Legal and Ethical Issues in Forensic Science hen most people think about the conviction of criminals, scientific evidence provides some of most credible evidence available. Scientific evidence is…

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2 Pages
Case Study

Education - Computers

Fraud and Forensic Accounting Investigation

Words: 531
Length: 2 Pages
Type: Case Study

Fraud and Forensic Evidence Fraud to Trial Process The case study presents a very interesting criminal act, the use of re-directing payers to a mock PayPal, an online payment processing company,…

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5 Pages
Research Paper

Accounting

Forensic Accountant Must Possess Accounting

Words: 1557
Length: 5 Pages
Type: Research Paper

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…

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8 Pages
Essay

Accounting

Forensic Accountants and Their Role

Words: 2417
Length: 8 Pages
Type: Essay

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…

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4 Pages
Research Paper

Criminal Justice

Forensic Unit Justification

Words: 1272
Length: 4 Pages
Type: Research Paper

Justification of a Forensic Unit Our Agency has just received $3 million grant from the federal government because of the efficient method that the unit employs in running the department.…

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6 Pages
Essay

Accounting

Skills That a Forensic Accountant Needs to

Words: 1770
Length: 6 Pages
Type: Essay

skills that a forensic accountant needs to possess and evaluate the need for each skill. Over the last several years, the role of forensic accountants has been continually evolving.…

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14 Pages
Term Paper

Accounting

Public Accounting Corporate Accounting and

Words: 3822
Length: 14 Pages
Type: Term Paper

This role is in response to clients' demands for a single trustworthy individual or firm to meet all of their financial needs. However, accountants are restricted from providing…

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6 Pages
SWOT

Accounting

Career Interest Is Accounting Accountancy Is the

Words: 2443
Length: 6 Pages
Type: SWOT

career interest is accounting. Accountancy is the process of evaluating the financial information about business entities to users such as the managers of the shareholders (Elliot, & Elliot,…

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2 Pages
Essay

Accounting / Finance

Career Options in Accounting

Words: 634
Length: 2 Pages
Type: Essay

Accounting Careers Accounting is a common function in virtually every organization, irrespective of size and industry/sector of operation. The function is generally concerned with documenting business transactions and preparing financial…

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8 Pages
Essay

Economics

Finance Management Accounting the Topic of Finance and

Words: 2385
Length: 8 Pages
Type: Essay

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…

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