As seen above, forensic auditing involves a wide spectrum of engagements that particularly revolve around investigative work. The investigation includes financial malpractices and fraud investigation. Yet further, forensic accountants are invited as expert witness in the event the investigated fraud is subjected to judicial proceedings. Forensic accounting on the other hand refers to specific progressive procedures carried out to produce evidence (Gerson, J., Brolly and Skalak, 2011). It is a procedure that involves auditing techniques to identify and gather evidence to prove the nature of the fraud and develop the context of the fraudulent activity.
o Providing assistance with examination for discovery, including the formulation of questions to be asked regarding the financial evidence. o Co-ordination with other experts. o Reviewing the opposing expert's damages report and reporting on both the strengths and weaknesses of the positions taken. o Providing attendance at trial while hearing the testimony of the opposing expert and also providing assistance with the cross-examination. Forensic accountants become involved in the assessment of economic loss damages in personal injury; assessment of damages in commercial disputes; business valuations for family law and commercial disputes; family law superannuation valuations; professional negligence claims; fraud investigation and fraud risk assessment; and business interruption
It is an interesting topic because it educates on how to prevent, detect, and deter fraud from occurring (Krancher, 2011, P. 14). Fraud examination is not only used to review the financial data, but also involves using techniques such as interview, financial analysis, obtaining evidence, public searches, and forensic document examination. Most importantly, fraud examination involves finding evidence for a specific allegation; whereas, unlike auditing, professional skepticism is used to make an opinion about financial statement and other related information. Finally, categories of fraud are the third most interesting topic because it teaches how to identify the type of crime or fraud occurred. To name a few, asset misappropriation, corruption, and financial statement fraud are major categories of crime.
Accounting profession is related to sensitive information of each individual, their clients such as social security or bank account numbers. To be ethical in accounting can give a power to accountant to maintain trust between their clients which cannot be abused. Poor ethics in accounting results a lag in
I find it difficult to believe that the managers were not aware of the reoccurring fraudulent activities. A bank’s work environment is highly commensurate with that of a sales environment. Banks often have sales objectives aimed at credit cards, lines of credits, mortgages, and more. Therefore, with my experience working in the sales industry, I imagine that there are unattainable sales goals that are set and managers create pressure onto the employees to hit unrealistic sales goals. The agency problem plays a significant role since managers know that if their branch hit their sales goals it looks good to upper management, thus creating job security with the company.
Forensic Technicians are responsible for many tasks, these include: • Keeping records and preparing reports detailing findings, investigative methods, and laboratory techniques. • Collect evidence from crime scenes. • Testify in court about investigative or analytical findings. • Use photographic or video equipment to document evidence or crime scenes. • Visit morgues, examine scenes of crimes, or contact other sources to obtain evidence or information to be used in investigations.
The nominated officer (within UK financial institutions is usually the Money Laundering Reporting Officer (MLRO)) is responsible for evaluating the suspicious activity and report this to the Financial Intelligence Unit (FIU) within the National Crime Agency (NCA). Failure to disclose such incidents is an offence for the employees and the nominated officer of the regulated firm. The authorised disclosure form relating to any suspicious activity commonly known as a ‘SAR’ (Suspicious Activity Report) is completed, and it is submitted to the National Crime Agency (the “NCA”). Section 104 of the Serious Organised Crime and Police Act 2005 (SOCPA) brought in an amendment to the Proceeds of Crime Act 2002 (PoCA). This added a condition that legal obligations to report remain only if: ● the identity of the person is known ● there is knowledge of the whereabouts of the laundered property ● the information that is available would assist in identifying that person, or the whereabouts of the laundered property.
Through the use of computer simulation models, it shows how a combination of CEO’s selfishness, financial incentive, shareholders’ expectations and subordinate silence as well as CEO’s dishonesty can do much to explain some of the findings highlighted in recent high-profile financial accounting scandals.” Cecchini et al. (2010) provided a methodology for detecting ‘management’ fraud using basic financial data based on ‘support vector machines’. A large experimental data set was collected, which included quantitative financial attributes for fraudulent and non-fraudulent public companies. They concluded that “Support vector machines using the financial kernel correctly labelled 80% of the fraudulent cases and 90.6% of the non-fraudulent cases on a holdout set. The results also show that the methodology has predictive value because, using only historical data, it was able to distinguish fraudulent from non-fraudulent companies in subsequent
Table of Contents Abstract: 3 Introduction: 3 Functions of an Accounting Information System: 4 Literature Review: 4 The Role of Financial Statement in Managerial Decision Making: 6 Accounting Information System related to Decision-making process: 7 Accounting Information on Decision-making Process: 7 Conclusion: 9 References: 10 Abstract: This paper discussed the extended normative model and supported through a longitudinal study. It is exploring the roles of Accounting Information Systems in an organization facing financial stages. Many teams suffer the various crises in different types. For example, Managerial, Marketing, and Production, financial. It follows systematic and traditional based decision-making concept such as game
Age Diversity in the Workplace Diversity at workplace is one of the prominent issues in today’s world. It is the challenging issue that managers face to manage at the workplace. But it gives the highest output if properly managed. By managing the workplace diversity, companies can increase the overall efficiency that results in higher output. Besides, it enhances the image of the company to become ‘Employers of Choice’.