Disadvantages Of Forensic Accounting

Question 1:

Businesses hire accounting firms to handle and to control the important financial tasks that they may not have the capacity, expertise or objectivity to conduct themselves. Accounting firms typically specialize in areas such as: auditing, business advisory services, tax accounting, bookkeeping and forensic accounting. The type of accounting firm you hire for your small business depends on the nature of your business requires and needs.

Audit Auditing firms generally cater to public companies required to comply with Securities and Exchange Commission regulations, private small business may also benefit from these types of services. Having a third party provide assurance that your financial statements present accurate information greatly improves chances of getting a loan. Banks view scrutinized

Bookkeeping firms help these businesses by performing basic day to day accounting functions such as payroll, accounts receivable, accounts payable and bank reconciliations. These firms may also help implement and operate your own accounting system, allowing monitoring expenses and revenues, identifying trends and tracking budget items. By outsourcing these functions, you can focus on the core operations and growth of your business.

Forensic Accounting

Forensic accounting involves the use of accounting skills to uncover fraud and other illegal activities. These specialists possess expertise in reviewing financial statements, computer systems and other accounting information to uncover embezzlement, tampering and other financial wrongdoing. During court cases involving monetary impropriety, an employer or law enforcement agency may call on a forensic accountant to testify as an expert witness. Forensic accountants may also help set up fraud detection and prevention systems for your business to mitigate financial risk from your