Reviewing critical analysis on forensic accounting Essay

The undermentioned paper is about the critical analysis between two documents. For this intent the documents selected are related to forensic accounting. This assignment high spots this importance of forensic accounting by comparing and contrasting two documents on the same subject. The paper titled as “ Forensic Accounting as an Fact-finding Tool ” will be name as “ paper A ” and the 2nd paper holding rubric as “ A Model Curriculum for Education in Fraud and Forensic Accounting ” will be called as “ paper B ” in this assignment the analysis and after this.

Overview

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Investors, business communities and portion holders are over valuing Forensic Accounting than of all time before. Forensic Accounting probe has become of import to the investors, concerns and to the populace. This importance of Forensic Accounting is punctually because of the black failure of large concerns such as Enron, WorldCom and Adelphia etc ( Reference required ) . The black concern failure ( in form of Enron, WorldCom, Adelphia ) of the early twenty-first century have been uncovering since after. So there is a demand across much of the concern for a best grab of the range and accomplishments of accounting research worker in the signifier of Forensic to forestall such monolithic frauds in the hereafter. Accounting. Some high corporate dirts like Enron, World com and Adelphia demonstrate and in demand to forestall, to discourage these monolithic frauds ( Repetition ) .

Most people seems to be fighting and want to cognize, how could these monolithic frauds have happened, how these frauds can be prevented, if non prevented wholly what should be go oning to the hereafter concern? Who should take the duty to discourage and look into these frauds? What methods are effectual? What should an research worker ( hearers ) , directions and corporate managers look for?

In this respect FORENSIC ACCOUNTING INVESTIGATON had a mere importance to observe these jobs, discourage future go oning, look for new criterions and study information. But still hearers have much to be trained and larn approximately comparatively new regulations and ordinance of forensic accounting.

We live in a station Enron, World com, Adelphia and much more epoch. It had given us that we thought on new statute laws and ordinance to beef up corporate governess and new inadvertences of the hearers. So that the investors maintain trust and have assurance on corporate information ‘s.

Investors are looking to directions, hearers and corporate managers and anticipating from them ( directions, hearers, corporate managers ) to maintain the company honest profitable and act responsibly. For these grounds Government regulative and company boards ( Public Company Accounting Oversight Board PCAOB ) reviewing and seeking the demand for a the new fraud criterions continuously.

Some of the definition of forensic accounting and fraud taken from different books are as under.

Forensic Accounting

Harmonizing to Hoopwood, Leiner and Young ( 2008 ) “ Forensic accounting is the application of probe and analytical accomplishments for the intent of deciding financials issues in a mode that meets criterions required by tribunals of jurisprudence. ”

Fraud

Hoopwood, Leiner and Young ( 2008 ) defines fraud as “ Fraud is the consequence of misleading, knowing actions or inactivities ( including doing deceptive statements and excluding relevant information ) ”

The associates of Certified Fraud Examiners ( day of the month ) defines fraud as “ the usage of one ‘s business for personal abuse or misapplication of the using organisation ‘s resources or assets ” ( Howard Silverstone, Michael Sheetz 2nd erectile dysfunction. ( 2007 )

Introduction TO THE PAPERS

Paper A describes the demand of forensic accounting as a major tool to discourage and observe white collar offenses. In this paper the writers highlights their positions of some corporate dirts like Enron, WorldCom and Adelphia. They besides mentioned the intelligence study of how terrorist used the international banking system to fund their activities ( money laundering ) . So it is for this ground the paper attracts our attending to raise consciousness of fraud and forensic accounting. To back up their point of position they talked about a theoretical account course of study built at West Virginia University in 2005 for fraud and forensic accounting. In this paper the research workers talked a small of this course of study and the methods of how course of study was built. Apart from this to separate between the fraud and forensic accounting the writers gave some definition of fraud and forensic accounting.

“ Paper B ” illustrate the attempts made in preparing and making classs and course of study for fraud and forensic accounting by the West Virginia University. The undertaking was supported by the National Institutes of Justices ( NIJ, rating bureau of the U.S Department of Justice ) . The chief purpose of the undertaking was to construct up guidelines for pupils, pedagogues, employers and professionals to understand the cognition, accomplishments and abilities required for their success in this turning field of fraud and forensic accounting. “ The theoretical account course of study guidelines were developed in three phases ( 1 ) representing a planning panel to steer the undertaking and choosing the members of proficient working group of capable affair experts ( 2 ) developing the course of study guidelines and ( 3 ) field proving those guidelines. ( Marry jo et Al ( 2008, p505 ) ” For this purpose two interconnected groups were formed, a planning panel which have 14 members and proficient working groups which include 32 members. These members were from across the state, stand foring professional ‘s services suppliers, corporate and industry stakeholders, the legal community, regulative stakeholders, jurisprudence enforcement, authorities, professional organisations, and faculty members. The course of study formed was the combined attempts of these 46 experts which took two old ages to develop.

INTERSTING ABOUT THE ARTICLES

There is being increasing improper fiscal activities. In order to drag these fiscal offenses, hearers and comptrollers must hold accomplishments, tools and cognition to recognize them. These documents show the class of such cognition and tools required and a theoretical account course of study which was ordered by the Institute of Justice to maintain the trust of investors and have assurance on corporate information. It is reviewing to observe that the course of study was built affecting many governments across the state. It non merely speak about the professionals hearers but it besides involve the pupils to guarantee that the degree of come ining in the field of forensic accounting and scrutinizing have the accomplishments, cognition tools and abilities needed to get down work in this specialized country of forensic accounting and fraud. This paper besides put frontward our attending to the interrelatedness of forensic accounting, scrutinizing and fraud and the demand to work in such a important field. The strength of these documents is that it brought in our attending that the range and work required in the field of Forensic Accounting, Auditing and Fraud. But the informations used by the writers is merely an account of the attempts made in theoretical account course of study. Nothing is new in this paper and no literature has been used.

IMPORATANCE OF THE PAPERS

These documents are so of import in this respect that it do a nice part to knowledge in the explaining of theoretical account course of study and the necessity of forensic accounting as a tool. These documents besides demonstrate the relation among forensic accounting, scrutinizing and fraud. These documents besides create chance for research workers to hold a expression penetration in the forensic accounting and the demand of more research to get the better of white neckband offense and increased the effectivity of scrutinizing.

WHAT MOTIVATES THE AUTHORS TO WRITE THIS ARTICLE NOW

Well the timing of “ paper A ” is rather interesting. It was published in August 2006 ; shortly after the theoretical account course of study was introduced in December 2005.But it is rather debatable that the writer did non utilize any literature. It is hard to understand why they merely explain the demand of forensic accounting and did non give the item of the course of study issued by the National Institute of Justice in “ paper A ” ?

“ Paper B ” was issued in November 2008.Again here no literature was used. It looks like that this paper is the extension format of “ paper A ” . Its here a inquiry of inquiring why there is a demand now to explicate the course of study after three old ages? Why did non the writer give the inside informations in the first stage ( i.e. in Paper A )

Apart from this some of the concern failure in the form of Enron, WorldCom Adelphia and other highlighted the demand to spread out comprehensive hazard direction programmes to cut down inefficiencies and the demand to supply fraud and forensic accounting specializers. As a consequence the demand for greater fraud consciousness and to concentrate on white neckband offense has grown. Otherwise there is an progressively demand of comptrollers and hearers in the field of forensic accounting to happen out fiscal use, cipher concealed assets, find out estimation of losingss. These were some of the facts that the research workers wrote these documents now to increase the consciousness to work in the field of forensic accounting and fraud as a specializers.

WHAT IS THE RESEARCH PROBLEM/QUESTION

Fraud is a challenge in concern now a yearss. The demand to track white collar offenses is necessary for concern and its interest holders and for the stockholders to hold faith on the concern. Illegal concern and fiscal offenses need to maintain path. Perpetrators are maintaining records of their concern to bring forth net incomes, financess and avoid sensing and prosecutions.

Experts are necessary to undertake them. Understanding of effectual Forensic accounting, fraud and auditing can assist in catching these offenses and can cut down the hazard to concern.

As fiscal offenses, white collar offenses, direction fraud, abuse of fiscal statements are increasing. Accountants must hold preparation, accomplishments and tools to understand these offenses. Apart from these huge corporate frauds like Enron and WorldCom the mundane concerns demands an effectual and discouraging bar of fraud.

For such fortunes Governments, concerns and stakeholders need the criterions to discourage such frauds and forensic accounting can assist in cut downing the administration hazard and undertaking fiscal offenses.

So the research chief inquiry ( job ) is the demand of effectual information and instruction in forensic accounting, fraud and auditing.

Theory OR THEORETICAL APPROACH UNDERPINS THE RESEARCH

This is something remains looks like a job to the research documents, although the writers did good in explicating the procedure of theoretical account course of study in which it was built. No literature reappraisal is used a base of the documents which is a important portion of the research to get down. The lone base used by the writers in these documents is explicating of the attempts in the procedure of constructing the theoretical account course of study. The research workers did non set any mentions at the terminal of the paper except National institute of justness web site at the beginning of the paper which put the credibleness of the paper in uncertainty. It seems like an account of the procedure in which the course of study was built.

KEY MOTIVATION LITERATURES ON WHICH THE STUDY DEPEND

This is the weakest portion of the documents with no literature. It is hard to state the motive literature on which the survey depend. In fact it is a affair of inquiring why the writer did non utilize any literature in these documents.

RESEARCH METHODS

These documents are descriptive type which illustrate that the National Institute of Justice Development to construct up a theoretical account course of study for forensic accounting and fraud. The writer explains the procedure and development done in the readying of the theoretical account course of study. In fact the lone strength of these documents is the informations aggregation from the National Institute of Justice. The writers have focused merely on one channel of the informations aggregation which is rather clear in the documents that merely one web site of National Institute of Justice has been used as a mention. No other mentions were found in the documents about informations aggregations.

Choice OF SAMPLES

Well the sample used by the writer in “ paper B ” was study and were the pupils from West Virginia University in March 2004. The paper provinces of a field tested theoretical account course of study at West Virginia University which is likely the strength of the paper. Eighteen ( 18 ) pupils were successful in the field tested theoretical account course of study. But the writer did non stated that how many pupils really took portion in the field testing.

The class was revised and the field trial took topographic point once more in summer 2005 at West Virginia University.This clip two different groups were selected to pattern professionals as a cogent evidence of construct for the theoretical account course of study. As a consequence the theoretical account course of study was modified in the terminal of 2005 and so it was presented to public remarks and finalising in December 2005.But once more the writer did non mentioned any specific Numberss of the groups. There are some concerns that Why the writer used an old sample ( 2004/05 ) . Why the writer did non travel for a study at Institutes where the course of study was taught? Why the writer did non utilize interview from professionals and qualified pupils who win after giving exams after 2005 boulder clay 2008?

Critical Analysis

The writers did a really difficult work in explicating the work done and attempts made in theoretical account course of study in the documents particularly in “ paper B ” . Yet there are some inquiries which are required to be answered. In this respect some of the analyses on both the documents are as ;

Why the research worker did non utilize any literature in both the documents.

Why the research worker did non explicate the theoretical account course of study at more item in “ paper A ” .

Why there is a demand to explicate the course of study after three old ages ( in paper B )

Why the research worker did rely merely on one web site.

Paper B was published in 2008 so why the research workers relied on old study of 2004/05 ( field tested theorey ) .

Why they did non give the figure of the sample they used in two different phases ( in Paper B ) .

To cognize the success of the course of study why the research workers did non utilize any study at the institutes where Forensic Accounting and fraud probe ( or such classs which were given in the theoretical account course of study ) were taught to the pupils after the course of study was built.

Why the research workers did non take interviews from professionals who studied at institutes after the course of study was made.

Why the research workers did non take the interviews from the employers.

Decision

These documents are so of import in this respect that it brought consciousness to the research workers to research in the field of fraud and forensic accounting and grab white collar offenses. These documents were focused on the attempts made by the planning groups and proficient groups ( West Virginia University ) to convey a course of study which helps in cut downing malpractice in fiscal statements and pinpoint white collar offenses. It helps a batch in turn toing twenty-four hours to twenty-four hours challenges faced by the employers, directions, hearers and corporate administration and how to manage and cut down these challenges.

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