Abstract
Financial statements are one of the key sources of information for stakeholders of companies. Therefore, financial reporting aims at presenting an objective and transparent state of an enterprise. In order to protect the interests of all stakeholders of companies, whether external or internal, the role of financial accountants is very important, which is related to the detection of fraudulent activities in the financial statements. Forensic accountants with the knowledge they possess in the field of accounting, auditing, management and other skills, have the ability to clearly understand the irregularities and injustices that occur within the company. Fraudulent actions are most often a case of using an enterprise management strategy to gain benefits to the interests of other marketers that surround it. The aim of the paper is to show the significance of the role of a financial accountant in detecting fraudulent actions in the financial statements. The subject of this paper is to investigate the possibility of fraudulent actions and to look into the specific role forensic accountants have in this process.
Highlights
Financial statements are one of the most important results of the accounting function of the company, which makes them an important and indispensable source of information
No financial statement can provide a complete picture of the company, if it is viewed and analyzed separately from other statements. „The purpose of accounting is to record, and communicate to interested users, the effect of economic events or transactions on an entity‖ (Ross, 2016).On the other hand, financial statements can be used to obtain unlawful benefits from certain individuals in the company
Forensic accountants use different methods and techniques to succeed in identifying and evaluating fraudulent actions that are the result of inadequate financial reports
Summary
Financial statements are one of the most important results of the accounting function of the company, which makes them an important and indispensable source of information. No financial statement can provide a complete picture of the company, if it is viewed and analyzed separately from other statements. „The purpose of accounting is to record, and communicate to interested users, the effect of economic events or transactions on an entity‖ (Ross, 2016).On the other hand, financial statements can be used to obtain unlawful benefits from certain individuals in the company. Fraudulent actions in financial statements play a major role in publishing transparent and sound financial statements. The scientific discipline concerned with the detection of fraud in the financial statements is forensic accounting. Forensic accountants use different methods and techniques to succeed in identifying and evaluating fraudulent actions that are the result of inadequate financial reports
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