FORENSIC ACCOUNTANTS
THE ESSENCE OF FORENSIC ACCOUNTANTS IN AUDIT ENGAGEMENTS
T
here is a misconception that forensic accounting and forensic auditing are the same thing. Auditors loosely define forensic accounting as the use of accounting principles and investigation techniques to identify fraud and theft. Forensic accountants qualify to testify in court and are instrumental in building legal cases.
KEMI MONGOADI MATHATHO
MBA, CFE, IAT(SA) SQR Audit Director
With the growing complexity of the business environment and the growing number of business-related investigations, forensic accounting professionals are increasingly asked to assist in the investigation of financial and business-related issues.
Improving infrastructure of internal control and accounting systems There have been many instances where forensic accountants are called in to determine the possible causes of the collapse of companies or SOEs who are involved in the reporting of financial statement misrepresentation. Global companies like Enron, Xerox and many state-owned entities like ESKOM, and SAA have harmed the reputation of their appointed auditors. In effect, shareholders, most especially the taxpayers, are financially affected. In order to mitigate fraud and theft, and to restore public confidence, entities can take steps to improve the infrastructure of their internal control and accounting systems.
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Advancing Auditing &Accountability
www.saiga.co.za
