Business Project Plan The Forensic Accounting

Question: Describe about the Business Project Plan for The Forensic Accounting. Answer: Research background, problems and its aims The forensic accounting can be defined as the implementation of the specialized knowledge related to the accounting, auditing and investigating the economic situation of any business organization or government authority. In the recent years it is observed that the incidents of fraud in private organizations as well as in government organizations are increased (Pedneault, Silverstone, Rudewicz Sheetz, 2012). Therefore the big business organizations are proactively trying to check up the economic situation of the organization to avoid any possibility of economic fraud in the organization. There are several examples of economic frauds like the WorldCom scandal in the year 2002, to the Mossack Fonseca scandal in the recent times that caused economic loss for the business organization as well as for the governments (Imoniana, Antunes Formigoni, 2013). Therefore it can be said that the economic frauds are still an issue that needs to be addressed by both the business organization as well as government authorities. Again with the emergence of the e-commerce for doing business also increased the probability of economic frauds in both public and private sector (Rezaee, Lo, Ha Suen., 2016). Although the transactions that are performed are audited under the internal as well as the external auditors, yet there is a chance of fraud in this business processes. As opined by Othman et al. (2015) the numbers of the financial or economic frauds are increasing everyday in the whole world, the forensic accounting is getting more important for the accounting and auditing of the financial statements of the organizations. Therefore the organizations should try to implement the forensic accounting in their accounting processes in order to find out any financial crime that is happening inside the organization. Moreover the forensic accounting can provide litigation support to the organization as well as the quantifying the economic damages of the organization due to a fraud. The forensic accounting helps in investigation of the criminal activities related to the economy of the organization, resolving the partnership and stakeholder disputes related to the business. As an investigator the forensic investigator needs to be able in working under regulatory environment and with a desired degree of accuracy (Pedneault, Silverstone, Rudewicz Sheetz, 2012). Also the forensic accountant must possess the ability to reconstruct the destroyed, missing or the deceptive accountancy related information so that the actual loss in the business or the social harm can be estimated accurately depending on the different econometric models and opportunity cost scenarios. Research Questions The research attempted to address the following questions, a) How and to what degree the presence of a forensic accountant can prevent the economic fraud in the organizations. b) To what extent the existence of the external auditor can help in detection and prevention of the frauds in the business organizations as well as government organizations. References Imoniana, J. O., Antunes, M. T. P., Formigoni, H. (2013). The forensic accounting and corporate fraud.JISTEM-Journal of Information Systems and Technology Management,10(1), 119-144 Othman, R., Aris, N. A., Mardziyah, A., Zainan, N., Amin, N. M. (2015). Fraud Detection and Prevention Methods in the Malaysian Public Sector: Accountants and Internal Auditors Perceptions.Procedia Economics and Finance,28, 59-67 Pedneault, S., Silverstone, H., Rudewicz, F., Sheetz, M. (2012).Forensic accounting and fraud investigation for non-experts. John Wiley Sons. Rezaee, Z., Lo, D., Ha, M., Suen, A. (2016). Forensic Accounting Education and Practice: Insights From China.Journal of Forensic Investigative Accounting,8(1).