Forensic Accounting

The criminal justice system is a series of institutions and practices within the government who are directed towards the preservation of social control, mitigation and deterring of criminal activities, (Law Criminal; Lawyer 2008). Forensic accounting fits firmly in the middle of the criminal justice system. Forensic accounting is the application of accounting principles to legal issues. Forensic accountants are accountants who are authorized for the legal review of business affairs and offer the highest level of assurance, (Buckhoff, T. and Schrader, R. 2000).

The Most Important Skills

Forensic accountants perform jobs in a scientific approach, hence the information they find are done using scientific methods. They then interpret the findings in a systematic manner. West Virginia University director of forensic development Max Houck defines forensic accounting as "the science of using accounting to identify and develop proof of money flow." The court system can not function without forensic accounting assistance. Forensic accountants are highly trained to unfold all legal activities that include but are not limited to divorce settlements, corporate fraud, and other white collar crimes. When fraud is suspected and criminal investigations are pursued, forensic accountants are generally called into action. Forensic accountants aid in litigation. Forensic accountants plan roles in reconstruction, measurement and probate asset identification. In order to be a forensic accountant, they should have the following skills: analytical skills, good communication skills, vocational skills, mathematical and bookkeeping skills, integrity and patience. All these skills are needed in order to trouble shoot while going through the information to ensure they are collecting the correct data. The most important skill is the ability to do math and handle bookkeeping. Math and bookkeeping skills are needed to be able to understand and compare financial figures. Forensic accountants should have good written, oral, and interpersonal communication skills because they should be able to communicate to explain their findings to the litigators. Excellent communication is also needed in order for a forensic accountant to testify as expert witnesses in the courtroom. They must be persistent and patient because collecting data can be very time consuming. A high level of integrity is required because people rely heavily on the correct information during settlement cases. If forensic accountants don't possess integrity then the judicial system would have never been able to prosecute Al Capone. Through these skills they develop a foundation in which to create a picture from all the missing pictures. Fraud detection considered by many to be one of the most important aspects of forensic accounting and this finding places fraud detection among the more important activities in the forensic accounting field. Academics were entirely consistent about their view that fraud detection is the most critical enhanced skill in forensic accounting. These results may also show that academics view the field of forensic accounting through a narrower lens or think forensic accounting is fraud detection rather than through a wider lens that sees the breadth of specialized forensic accounting services available.

Role in Courtroom Environment

Forensic accountants' roles in a courtroom environment are essential to winning a case. The first stage of forensic accounting is usually the investigation of the criminal act. This is where the forensic accountants' process begins. Forensic accountants are contacted and typically an accused individual is arrested after the necessary investigations have been carried out which connects the person to that particular crime. Arrests are usually carried out by police office upon presentation of a warrant legalizing the arrest such that the suspect is held in custody awaiting the court hearings, (Law Criminal Lawyer, 2008). Forensic accountants also considered consultants help in the investigations against corporations. They aid in different types of litigations. Special investigations that include compliance of contracts often involve forensic accountants. Their role is to analyze financial records to hopefully uncover the truth of illegal activities and gather evidence to present to the litigators. They also review documents to identify the loss and work as mediators or arbitrators during settlement discussions. Forensic accountants help litigators understand financial aspects of evidence, obtain documents that assist and support the denial of a claim. They help to form questions to be asked during the 'Examination for Discovery.' Again forensic accountants testify as expert witnesses in the court of law. Several cases both high and low profiles would not have been successful had it not been for the assistance of forensic accountants. Forensic accountants are taught to be open minded and objective to finding the true meaning in all evidence. They examine financial data in regard to criminal activities such as fraud, embezzlement, money laundering, and illegal transactions. They find information from bank accounts and financial records. They determine whether there were illegal or fraudulent activities using their knowledge of law and accounting. Although they report their finding to a court of law, they always interpret their findings to their own clients first. For example, they play major roles in investigating insurance claims, and divorce settlements such as the divorce of Sir Paul McCartney and his then wife Heather Mills. Forensic helped determine how much money Sir Paul McCartney was worth before the lawyers were able to reach a divorce settlement. This assured both parties that they were playing on fair ground. Forensic can also be independent consultant who would be used to aid a small business owner who may suspect that their bookkeepers are embezzling funds. The importance of the roles and primary objectives of a forensic accountant during an investigation will also be evaluated while proving forensic accountant during an investigation