Difference Between Forensic Accounting And Forensic Accounting

1. Explain what Forensic-Accounting is.

Forensic-Accounting is the specialty practice area of accounting that describes engagements that result from actual or anticipated disputes or litigation. “Forensic” means suitable for use in Court, and it is to that standard and potential outcome that Forensic-Accountants generally have to work. Forensic-Accounting encompasses two areas:

Litigation Support

Litigation represents the factual presentation of economic issues related to existing or pending litigation. In this capacity, the forensic-accountant quantifies damages sustained by parties involved in lega1disputes and can assist in resolving disputes before they reach the courtroom. If a dispute reaches the courtroom, the forensic-accountant may

Fraud auditors try to contro1situation before something happens, whereas a forensic-accountant may be hired after the fact. A forensic-accountant is usually hired after a company suspect’s theft, fraud or embezzlement.

2. Distinguish between Forensic-Accounting and forensic auditing.

The role of both Forensic-Accounting and forensic auditing are similar but only the difference is Forensic-Accounting can be used as interna1management investigation while forensic auditing can be done by the external auditing firms.

Forensic accounting, forensic accountancy or financial forensics is the specialty practice area of accounting that describes engagements that result from actual or anticipated disputes or litigation. "Forensic" means "suitable for use in a court of law", and it is to that standard and potential outcome that Forensic-Accountants generally have to work. Forensic-Accountants, also referred to as forensic auditors or investigative auditors, often have to give expert evidence at the eventual trial. The integration of accounting, auditing and investigative skills yields the specialty known as Forensic Accounting. Forensic-Accounting encompasses both Litigation-Support and Investigative