The Role of Forensic Accountants in Detecting Frauds in Financial Statements

By

ACKNOWLEDGEMENT

No words can express my appreciation and gratitude to my research advisor _______ through the course of this research, Professor _____has taught me numerous values that extend well beyond the realm of _________ (Your Subject Name). His emphasis on dedication to work and his valuable and practical insights of life are some of the major highlights of my education at The University _________.

DECLARATION

I [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for the academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

Signed __________________ Date _________________

Table of Contents

ACKNOWLEDGEMENTii

DECLARATIONiii

Introduction2

Aims and Objectives2

Significance of the Study3

Research Questions3

Literature Review3

Definition of Forensic Accounting3

Frauds and Omissions as the Causes of Inaccuracy of Financial Statements4

Forensic Accounting and the Role of Forensic Accountants In Detecting Frauds In Financial Statements5

Research Methodology8

Research approach used in this study8

Justification of using mixed method to research9

Secondary data search9

Research Method9

Research design10

Timescale10

Time Scale10

Gantt chart11

Resources12

The Role of Forensic Accountants in Detecting Frauds in Financial Statements

Introduction

Under contemporary conditions of business activity, securing reliable financial information through disclosing financial statements is considered a generally accepted objective. Numerous financial frauds from the past and the beginning of the century have seriously disrupted the trust of numerous users in financial information contained in financial statements. The greatest frauds of the users of financial information and primarily investors have been committed by presenting false i.e. falsified financial statements. The responsibility of preventing, detecting and investigating frauds in financial statements lies in the hands of the management of an enterprise, but also in the hands of other control institutions and mechanisms.

In the last fifteen years, and increasingly today, the accountants that are called forensic investigators or forensic accountants have been engaged in detecting frauds in financial statements. Engaged by the management, owner or other users of financial statements, forensic accountants investigate and document financial frauds or inaccurate materially significant information.

Aims and Objectives

The aim of the paper is to discuss frauds and omissions as the causes of inaccurate financial statements, control mechanisms and institutions responsible for investigating frauds as well as the role and importance of forensic accounting and a forensic accountant in detecting frauds in financial statements.

Significance of the Study

This study is significant in many contexts. The study identifies many aspects detecting Frauds in Financial Statements. In order to perform the given tasks, forensic accountants must have solid knowledge of accounting and auditing, developed capability of good communication -verbal, written and investigative, independence and a considerable degree of knowledge about the usage of information technology in accounting and auditing procedures. Accordingly, the paper will discuss frauds and omissions as the causes of inaccurate financial reporting, control mechanism and instructions responsible for investigating frauds and the place and role of forensic accountants in detecting frauds in financial statements.

Research Questions

The paper will discuss frauds and omissions as the causes of inaccurate financial reporting, ...