1 forensic investigation/audit
1.1 financial statements
1.2 bank statements
1.3 credit statements
forensic investigation/audit
forensic accountants need advance become rounded forensic investigators or auditors can handle type of situation requiring financial or digital forensic skills. these days white collar criminals high tech extent of using computers defraud , perpetrate financial related crimes in such manner traditional forensic accountant can not able trace. investigation involves e-mail tracing ascertain intent element must exist 1 convicted of fraud. certified forensic investigation professionals have such training. part forensic accountants , part digital forensic experts.
financial statements
financial statements important forensic accountants because must analyze information given on statements , compare information other sources. balance sheet, income statement, statement of owner s equity, , statement of cash flows 4 important financial statements forensic accountants at; however, @ business plans , disclosures in footnotes.
the balance sheet shows financial position of company @ given point in time. lists company s assets, liabilities, , owner s equity while showing resources of company. income statement shows results of company s operations during period of time, revenues minus expenses given time period ending @ specified date. statement of owner s equity, known statement of retained earnings or equity statement, reconciles beginning , ending retained earnings period, using information such net income other financial statements. statement of cash flows lists sources , uses of cash , divides them operating, investing, , financing activities. evaluate company s ability pay bills while indicating if there enough cash routine operations. other financial documents need examined include general journal, general ledger, sales journal, purchases journal, cash receipts journal , cash disbursements journal.
even though forensic accountants need analyze , compare financial statements cases of fraudulent activity not in plain sight. fraudulent activity hidden , manipulated point forensic accountants must dig deep company.
bank statements
bank statements needed in order investigate company. owner s personal bank statements needed company s bank statements. if company 1 wanted investigation conducted suspect employee. therefore, bank statements needed individual being investigated. show how cash coming , out of company. show money going , coming from, clients, , if money has been transferred foreign accountants.
once again, if owner of company performing fraudulent activities discrepancies not in plain sight; owner have foreign accountants no trace them. if evidence of foreign account can found there may evidence on individual has been purchasing account, when opened, how has been deposited, , if there valid reason individual have foreign account open. if company based overseas, alone reason enough have foreign account. however, if individual s personal account , put account under different name (mother s maiden name died 10 years ago) there enough reason believe individual trying hide something.
credit statements
credit statements can show evidence bank statements may not, once again, evidence not in plain sight. forensic accountants must see if there big purchases not match individual s income, instance, new vehicle. credit statements may reveal individual has been taking several exotic vacations on past few years outside of means.
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