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As businesses are growing, so is the transactional data that they are accumulating.
In the absence of a streamlined oversight, the transactional data, along with other information can be easily formulated to cater malicious activities.
Courtesy of them, through this blog, I shed a light on the importance of forensic accounting.Importance of forensic accountingFollowing are the many importance as to why Manoj Pahwa and Associates, a team of chartered accountants, consider forensic accounting to the most important aspect of business:Complex litigation procedures: When dealing with legal proceedings to deal with financial disputes, corporate lawyers, more often than not are not able to provide specialized attention to accounting.
In this regard, a forensic accountant steps in to decipher the complicated financial issues and communicate them in a way which is understandable by both the lawyers and the client.Large government investigations: Forensic accounting is not limited to investigation into private limited company or a firm, it’s also important in government investigations.
The forensic accountants can play a major role and following complex money trails that can span over several departments and individuals depending upon the scale of corruption.
They can create a simple report highlighting the complexity and relay it to the concerned officials who can then use that information to put the department in focus.Risk management and prevention: The increase of complexity in large businesses and the government’s financial matters has made corporate and governmental bodies to gravitate towards forensic accountants.
