Understanding What Forensic Accounting Is

When many people hear the term forensics, their minds automatically conjure images of those television shows that feature a crime. However, when it comes to forensic accounting, there is a different kind of crime being told. Forensic accountancy is a growing field that many businesses need.

The term forensics itself means to use scientific methods to investigate a crime. In many cases, a forensic accountant digs in the accounts of businesses to uncover discrepancies. These discrepancies could be as small as mismanagement of funds to larger cases of fraud or embezzlement.

One obvious employer of forensic accountants is the federal government. The Internal Revenue Service uses forensic accountants during audit periods for individuals and companies.  In addition, other agencies such as the department of education and the Federal Trade Commission provide funds to various industries and these industries are held to strict accounting standards in order to maintain funding. Industries found in violation of allocation of funds are often uncovered by forensic accountants. Industries themselves can also employ forensic accountants to ensure that their accounts are accurate.

There are many types of accountants out there, and they all aren’t boring number crunchers as people might suspect. For more about the exciting world of forensic accountancy, call Quality Bookkeeping Services Inc. at 910-452-0480.