Forensic Accounting, Fraud Examination, Fraud Examiner, and Forensic Accountant ?
The Difference
between Forensic Accounting, Fraud Examination, Fraud Examiner, and Forensic
Accountant
Forensic Accounting
Forensic accounting is the use of professional accounting
skills in matters involving potential or actual civil or criminal litigation.
The word forensic is defined by Black’s Law Dictionary as “used in or suitable
to courts of law or public debate.”
Therefore, forensic accounting is actually litigation
support involving accounting. Accordingly, most fraud examinations involve
forensic accounting, but not all-forensic accounting is fraud examination.
For example, an individual hired to value the property in a
minority shareholder derivative suit would engage in forensic accounting even
if the engagement does not involve fraud.
A person who does forensic accounting is Forensic Accountant
Fraud Examination
The term fraud examination refers to a process of resolving
allegations of fraud from inception to disposition, and it is the primary
function of the anti-fraud professional.
The fraud examination process encompasses a variety of tasks
that might include:
- Obtaining evidence
- Reporting
- Testifying
- Assisting in fraud detection and prevention
A person who does fraud examination is Fraud Examiner
Each fraud examination should begin with the proposition
that the case will end in litigation. Thus, when a fraud examiner begins a
fraud examination, he must assume that the case will end in litigation, and
this assumption must be maintained and considered throughout the entire
examination.
If the fraud examiner assumes that litigation will occur, he
will conduct the examination in accordance with the proper rules of evidence
and remain well within the guidelines established by the legal systems.
Source: Module ACFE: Investigation
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