Explain forensic accounting and fraud examination methods that could be used to investigate the alleged fraud.

timer Asked: Mar 3rd, 2018
account_balance_wallet $55

Question description

8-10 pages (excluding title page, abstract, references, or appendices)

You are being considered for retention as a forensic accountant by a federal prosecutor in a financial statement fraud case of the magnitude similar to that of a well-known, former American energy, commodities, and services company based in Texas. To demonstrate your forensic accounting mastery and fraud examination knowledge, prepare a report that addresses the following elements that you believe would be critical to the pending litigation:

  • Explain forensic accounting and fraud examination methods that could be used to investigate the alleged fraud.
  • Assess the applicable rules governing the collection and admission of the types of evidence that are likely in the case.
  • Analyze strategies for litigation support as a consultant, expert witness, or fact witness.
  • Evaluate accounting approaches that could be used to compute the value of damages or the impact of the alleged fraud.
  • Identify the elements of a forensic fraud investigation report, and explain how they could be used to support case preparation.
  • Assess remediation strategies that could be used in the event the litigation is successful.

Tutor Answer

School: Duke University

Hey, could you give me 8 more hours?
Hey, I've attached the answer, please confirm, thanks


Forensic Accounting and Fraud Examination
Student’s Name


Forensic accounting refers to an engagement process that involves collecting evidence
which is required to prepare the report of an expert or the statement from a witness. The person
collecting the evidence is required to act as an expert witness during the lawful proceedings. The
process also involves forensic auditing and also incorporates other techniques used during the
investigation such as interrogating the suspects and witnesses, recovering of important computer
files, and physical searches of the premises (Kranacher, Riley, & Wells, 2010). The two
functions of forensic accounting are; take legal actions on advisory services and investigative
services. Forensic accounting requires accounting knowledge and investigative skills,
calculations of economic damages, evaluation of assets in a business and provision of support.
On the other hand, fraud examination refers to the discipline that involves resolving
accusations and claims of fraud from accounting hint, tip or complaints. The process requires the
fraud examiner to obtain evidence in form of documentary, interviews, write the reports obtained
from the investigation, testify to the findings, and assist in the detection and avoiding fraud. The
examiner should be well acquainted with the proper acquisition of evidence legally and should
be able to write a lucid, accurate and unprejudiced report which mirror the results obtained from
the fraud examination. His work is to collect evidence and not ultimately judge and thus is
expected to give evidence before the authorities of the judiciary. The fraud examiner should also
be able to recommend the suitable procedures and policies that will be used to prevent fraud.

Both direct and indirect methods will be used in this case. The methods help in
understanding and comprehending what happened to the income for the case under scrutiny. The
direct method can also be referred to as Transaction Method. When using this method of forensic
accounting, the work of the accountant is to examine canceled invoices or checks, public records,
and notices, agreements, and contracts (Kent, 2018). If necessary, interviewing management or
employees may also be crucial. Conversely, the Indirect Method that will be used for this case is
the Net worth and the Bank Deposit Method. Net worth Method calculates the full amount of
assets and then subtracting the sum of liabilities of a company (Pasco, 2012). The number
obtained is the net worth of the company. The method is used in comparison with the reported
income over a period of time. Unreconciled differences lead to forensic accounting and fraud
The Bank Deposit Method is used to analyze the sum total of deposits over on...

flag Report DMCA

Top quality work from this guy! I'll be back!

Similar Questions
Hot Questions
Related Tags

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors