BUS 4068 Unit 1 Assignment 1 Meet Investigative Accounting
Meet Investigative Accounting
Mary, the controller for My Citizens Company, has discovered some issues with the company’s inventory. Although she is uncertain whether it’s due to theft, she notices that certain records are missing from the books without any explanation. Unfortunately, the internal auditors have failed to justify the missing documents.
Given the lack of evidence indicating fraud, involving the police may not be a viable option. Progress can be made in resolving the case with concrete proof of a crime. However, Mary realizes that forensic accounting could be instrumental in reconstructing the missing records and determining if any ongoing fraudulent activities occur.
Forensic accounting can assist in detecting fraud and support the police in investigating such cases. Moreover, it can benefit Mary by ensuring the storage of valuable backup data in an off-site location, offering added security.
In the realm of forensic accounting, the firm can be involved in various areas, including criminal investigations, resolving shareholders’ and partnership disputes, handling personal injury claims and motor vehicle accidents, managing business interruption and other types of insurance claims, conducting business and employee fraud investigations, addressing business economic losses, and handling cases of professional negligence.
Forensic accounting firms may require external assistance from private investigators, forensic document examiners, and consulting engineers to carry out these tasks effectively. Each specialist brings a unique skill set that helps uncover hidden assets, forged documents, or tampered digital records. In the event of suspected fraud within the company, contacting the internal audit team is crucial. They can provide valuable insights into potential accounting discrepancies before external auditors uncover them. Early collaboration with legal counsel is also essential to ensure that any investigation aligns with legal standards and maintains the chain of custody for evidence. This proactive approach helps ensure the collection of appropriate financial reports and enables the organization to comply with laws and regulations related to internal audits.
