Literature Review: Forensic Accounting

Running head: LITRATURE REVIEW: FORENSIC ACCOUNTING
Literature Review: Forensic Accounting
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1LITERATURE REVIEW: FORENSIC ACCOUNTING
Table of Contents
Introduction................................................................................................................................2
Forensic Accounting: Meaning and Definitions........................................................................2
Activities of Forensic Accountants............................................................................................2
Why Forensic Accounting is required in companies.................................................................3
Significance of Forensic Accounting.........................................................................................4
Limitations and Problems in Financial Accounting...................................................................4
Conclusion..................................................................................................................................5
References..................................................................................................................................6

2LITERATURE REVIEW: FORENSIC ACCOUNTING
Introduction
Accounting, as a separate discipline, has emerged as one of the significant
components in the global commercial framework, over the decades. With the international
business scenario becoming more integrated, inclusive and dynamics in the contemporary
period, considerably owing to phenomena like that of Globalisation, commercial
liberalisations, technological innovations and others, the importance of proper accounting
methods and tools are felt significantly in the operational framework of any kind of business
across the globe. This is because much of a company’s efficiency, cost-effectiveness,
profitability and sustainability depends on the presence of suitable and efficient accounting
methods.
However, in the recent period, with the increase in the commercial activities across
the globe and with the increasing technological developments and implementations (like that
of usage of internet), the financial security of the businesses has been becoming one of the
primary issues of concern. With time, the number of accounting scandals, frauds and unfair
activities can also be seen to be increasing in these scenarios. This is turn, has led to the
evolution of forensic accounting and the increased implementation of the same in the
business activities.
Keeping this into consideration, the following section of the report consists of an
extensive review of the existing literary and scholarly work in the domain of evolution,
importance, implication and limitations of forensic accounting, especially emphasizing on the
commercial domain of Australia.
Forensic Accounting: Meaning and Definitions
There exist various perceptions and definitons of the notion of “Forensic Accounting”
as a separate and independent genre in the accouning framework in general international
scenrio. In this context, Pedneault, et al. (2012), describes forensic accounting as an
amalgamation of accounting frameworks and principles, especially in the corporate scenario
with that of the techniliques and activities related to investigation and detection og any kind
of fraudulent or suspicious activities especially in the domians of finanical statements,
records and other financial activities of the companeis, in the contemproary global
commercial scenario. The assertions of the authors, can be seen to be augmented by the
argument put forward by Bhasin (2015), according to whom, the genre of forensic accounting
provides an analysis of accounting which is suitable to the court and which, in case of
contingencies, can help in forming the basis for debates, discussions and resolution of
disputes regarding the financial aspects of the different companies in the contemporary global
scenario.
Thus, from the assertions of the different literary works it is evident that the genre of
forensic accounting holds immense relevance in the financial activities and also in the overall
operational framework of the businesses, especially in the contemporary period of creation of
a global market for businesses, with increasing activities and dynamics in both the demand
side as well as supply side.
Activities of Forensic Accountants
In their elaborate literary work, regarding the development of the genre of forensic
accounting and the increasing implementation of the practices in this domain, increasingly, in
the contemporary business frameworks, Özkul and Pamukçu (2012), highlight the different
activities which are priamrily performed by the forensic accountants, especially in the domain