Forensic accounting is a type of accounting specialized in the discovery, disclosure, and attestation of fraud and crimes in the development of public and private functions. The forensic accounting firms in India are linked to the legal investigation to facilitate the administration of justice by providing evidence to become evidence in court, as it can be an effective tool for the investigation when a crime is committed, but it also serves control and prevention.
Forensic accounting service in Delhi is not necessarily designed to find a criminal act, but also to clarify the truth of the facts or to exonerate an innocent suspect or an entity that has been accused of fraud to obtain financial benefits.
Errors and irregularities
Errors are unintentional; errors based on misunderstanding or poor interpretation are regularly outside the scope of internal control.
Specifically, the error is an incorrect but unintentional action caused by problems of a mathematical, conceptual, comprehension, or other nature. For their part, the irregularities are produced intentionally; anything that can happen unintentionally can be deliberately attempted.
Reasons and causes of fraud
Frauds in the business environment usually occur due to deficiencies or omissions in internal control systems, often presenting that companies do not take all the necessary measures to prevent fraud, and unfortunately many times they learn afterward, after suffering embezzlement.
People do not perpetrate fraud if they are not presented with the opportunity to do so, one of the conditions that favour this, weak or non-existent organizational internal control systems, also having to consider the hierarchical level that the possible fraudster occupies in a company since if you have power, your wrongdoing is more likely to succeed.
It is also important to bear in mind the possibility of collusion, one of the criminal forms that most violates an internal control system.
Fraud is on the rise in multiple sectors of society, both in the private and public spheres, the latter being one of the most affected by deficiencies in control systems. This dire reality must force organizations to adapt to the changing profile of fraudsters, which is constantly changing, given that we are, among other circumstances, in a technological era where cybercrime has had an adequate breeding ground, so they must rethink priorities to reduce fraud.
Forensic accounting is a specialized branch of investigative accounting that is used in the criminal field, and that it serves to investigate and support the reconstruction of financial facts in fraud investigations, to determine the economic damages caused and the responsibilities of the case.
The essential objective of an external and independent audit is to determine the reasonableness of the figures in the financial statements of the company under examination, and not to determine or investigate whether there was theft or fraud.
In contrast to the above, forensic accountants investigate, analyse, evaluate, interpret, and based on all this, testify, and provide evidence, to convince judges, juries, and others, regarding the financial information about which the existence of criminal acts is estimated or presumed.
To avoid facing situations like the presence of fraud in your company, it is recommended that forensic accounting firms in India should be contacted as soon as possible.
This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise. AKGVG & Associates does not intend to advertise its services through this.