THE ROLE OF FORENSIC ACCOUNTING AS A TOOL IN THE FIGHT AGAINST FINANCIAL CRIMES
DOI:
https://doi.org/10.53555/eijbms.v6i4.107Keywords:
Forensic Accounting, litigation support, investigative accounting, financial crimesAbstract
Financial crime is defined as crime that is specifically committed against property. These crimes are almost always committed for the personal benefit of the criminal, and they involve an illegal conversion of ownership of the property that is involved. Financial crimes can occur in many different forms, and they happen all over the world. Some of the most common crimes facing the financial sector are money laundering, terrorist financing, fraud, tax evasion, embezzlement, forgery, counterfeiting, and identity theft. These crimes are committed every single day, and governments across the globe are constantly prosecuting financial criminals while searching for new ones. Forensic accounting utilizes accounting, auditing and investigative skills to conduct an examination into the finances of an individual or business. Forensic accounting provides an accounting analysis suitable to be used in legal proceedings. Forensic accountants are trained to look beyond the numbers and deal with the business reality of a situation. Forensic accounting is frequently used in fraud and embezzlement cases to explain the nature of a financial crime in court and in unveiling crime in both public sector and private sector. Forensic accountants analyze, interpret and summarize complex financial and business matters. They may be employed by insurance companies, banks, police forces, government agencies or public accounting firms. Forensic accountants compile financial evidence, develop computer applications to manage the information collected and communicate their findings in the form of reports or presentations. This study examined the role of forensic Accounting as a tool to fight financial crimes. The main objective is to examine the role of forensic Accounting as a tool in the fight against financial crimes. The specific objectives include: litigation support and investigative accounting. Survey research design was used because descriptive studies are characterized as simply the attempt to determine, describe or identify what is, while analytical research attempts to establish why it is that way or how it came to be” and data was collected using a 5 point Likert scale questionnaires. In analyzing data both descriptive and inferential statistics were employed. The results showed that forensic Accountants are relevant in investigating crime and they also play a significant part in litigation support. Recommendations amongst others were that professional Accountants should keep themselves abreast with emerging trends in unveiling crime.
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