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Disadvantages Of Forensic Accounting

explanatory Essay
955 words
955 words
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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 …show more content…

In this essay, the author

  • Explains that businesses hire accounting firms to handle important financial tasks that they may not have the capacity, expertise or objectivity to conduct themselves. accounting firms specialize in auditing, business advisory services, tax accounting, bookkeeping and forensic accounting.
  • Explains that auditing firms cater to public companies required to comply with securities and exchange commission regulations, while private small business may also benefit from these types of services.
  • Explains that tax accounting firms conduct tax planning, compliance and preparation for individuals and companies. tax planning involves minimizing the tax liability and overall tax burden for your business.
  • Explains that bookkeeping firms help small businesses by performing basic day-to-day accounting functions such as payroll, accounts receivable, account payable, and bank reconciliations. they may also implement and operate their own accounting system.
  • Explains that forensic accounting involves the use of accounting skills to uncover fraud and other illegal activities.
  • Explains that the "crisis of credibility" arose from the number of companies that restated their previously issued financial statements due to accounting irregularities and fraud.
  • Explains that the consolidated financial statements have been prepared in accordance with the international financial reporting standards (ifrs) and the requirement of uea federal law no. (2) of 2015.
  • Explains that external auditors are responsible for auditing the company's financial statements and providing reasonable assurance that they are presented fairly and in conformity with gaap.
  • Explains the risk of material misstatement, which is assessed by auditors at the assertion level and the financial statement level.

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

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