Forensic Accounting Profession Research Articles

The Impact of Forensic Accountant Characteristics on Reducing Tax Evasion from the Perspective of External Auditors Working in Audit Firms and Companies in the Republic of Yemen: A Field Study

The study aimed to identify and measure the impact of forensic accountant characteristics on reducing tax evasion from the perspective of external auditors working in audit firms and companies in the Republic of Yemen. To achieve the study's objectives, an electronic questionnaire was used as a data collection tool from a population of 384 external auditors in audit firms and companies using a complete enumeration method. The number of retrieved questionnaires was 329, and the number of questionnaires valid for analysis was 260. The data were analyzed using the SPSS, where multiple regression analysis was used to test the hypotheses. The results of the field study showed a positive impact of forensic accountant characteristics (skills and qualifications) on reducing tax evasion. Skills had a high positive impact on reducing tax evasion, followed by qualifications, especially those holding a CFA certificate. The results also showed no impact of forensic accountant characteristics (experience and behaviors) on reducing tax evasion according to the study population's opinion. The study revealed that the most related dimensions to reducing tax evasion, according to the study population's perspective, are the justifications for tax evasion, followed by tax evasion opportunities, tax evasion capabilities, and then tax evasion pressures. The study recommends the need to establish a specialized professional association concerned with organizing the forensic accounting profession in the Republic of Yemen, adopting the forensic accounting subject within accounting curricula, and activating field training for those performing the duties of forensic accountants.

Revitalizing the Forensic Accounting: An Exploratory Study on Mitigating the Financial Risk using Data Analytics

Risk mitigation and fraud prevention in the present times has more focus on digital metadata, wherein forensic accountants are required to make use of robust IT techniques and tools. Data Analytics has got huge implications for forensic accounting. With the ever-increasing electronic element of frauds in the present age of digitalization, and complexity of financial transactions and instruments, the challenges are growing multifold for the forensic accounting profession. The use of data analytics techniques, which enables the processing of large data in almost no time, simplify the task of forensic accountant to a large extent. It enables the identification of patterns and anomalies with the use of machine learning, deep learning, natural language processing, data mining and similar other statistical techniques. Beneish M-score and the Altman Z-score models are proven effective forensic accounting tools in fraud detection and insolvency prediction. This study has been undertaken to test the effectiveness and efficiency of these forensic tools in fraud detection and insolvency prediction with the case study of Bhushan Steel Ltd. Based upon the findings of the study, it is suggested that these models should be integrated with the data analytics, as these are highly effective and efficient in detection of financial statements frauds and this integration would equip the naïve investor in selection of financially sound company(s) to invest in. Data analytics is thus indispensable in the field of forensic accounting in the present era. Since, there is increased funding by many international funding agencies including the World Bank for empowering the forensic accountants and increasing awareness towards this profession, especially in developing countries; it can be hoped that the integration of data analytics with forensic accounting would gain momentum soon.

The state of forensic accounting: South Africa versus the United States of America

As a multi-faceted emerging profession, forensic accounting is surrounded by some issues, controversies, and challenges among them lack of consensus on the entry requirements and certification of the profession, misconstruction of the innate goal of forensic accounting, and the lack of consensus on the teaching pedagogies of forensic accounting. The claim of ownership of forensic accounting by different professional bodies in different jurisdictions also exacerbates these challenges. With these issues surrounding the profession, this study sought to examine the state of affairs of forensic accounting in a developed economy, USA, and a developing economy South Africa. The comparison was based on the following criteria: certification; the profession issues; constitutional and judicial issues; and legal and regulatory issues. The study employed a desktop literature review methodology involving an in-depth review of relevant and current literature. The paper found that both countries share a similar status of the forensic accounting profession only on the profession issues. Differences were noted on the certification; constitutional and judicial issues; as well as the legal and regulatory issues. To date, the profession is regulated in both jurisdictions but it happened in 2000 in the US and 2013 in South Africa. It can therefore be concluded that the similarity in forensic accounting profession status for the two jurisdictions is based only on the profession criteria with differences existing in the certification; constitutional and judicial; and legal and regulatory issues. The paper recommends more studies on comparing the status of the profession in other jurisdictions because extant literature still alludes to unresolved issues and challenges on forensic accounting in some jurisdictions.

A Research on the Development of Forensic Accounting Profession in Turkey: The Case of Accounting Professionals

Son yıllarda işletmelerde yaşanan hile ve yolsuzluklardaki artışla beraber, sözkonusu bu hile ve yolsuzlukların tespit edilmesi ve önlenmesinde geleneksel denetim yöntem ve tekniklerin yetersiz kalmaya başlaması, hile ve yolsuzluklarla mücadelede önemli bir araç olarak “adli muhasebe” ve “adli muhasebecilik” kavramının ortaya çıkmasına neden olmuştur. Dünyada birçok ülkede bir meslek olarak kabul edilen ancak henüz Türkiye’de bir meslek olarak kabul edilmemiş olan adli muhasebecilik mesleğinin, bu mesleği icra edecek uygulamacılar olarak muhasebe meslek mensuplarınca değerlendirilmesi önem taşımaktadır. Bu doğrultuda bu çalışmada; Nevşehir ilinde faaliyette bulunan muhasebe meslek mensuplarının adli muhasebecilik mesleğine yönelik farkındalık düzeyleri, adli muhasebecilik mesleğinde ihtiyaç duyulan konular ve Türkiye’de adli muhasebecilik mesleğinin gelişmesine yönelik olarak staj konusunda, eğitim konusunda ve mesleki yeterlilikler konusundaki önerileri ortaya konulmuştur. Araştırma sonucunda; muhasebe meslek mensuplarının adli muhasebecilik uygulamaları hakkında farkındalık düzeylerinin yüksek olduğu, adli muhasebecilik mesleğine ihtiyaç duyulan konulardan; “hile ve yolsuzlukların tespit edilmesi” ve “bilgisayar destekli adli incelemeler” konusunda adli muhasebecilik mesleğine daha çok ihtiyaç duyulduğu sonucuna ulaşılmıştır. Ayrıca adli muhasebecilik mesleğinin Türkiye’de gelişimine yönelik öneriler hususunda da “adli muhasebecilik mesleğine yönelik eğitim konusundaki öneriler”in en yüksek katılım sağlanılan öneri grubu olduğu tespit edilmiştir.

Exploring the Current State of Forensic Accounting in Saudi Arabia and Possible Ways of Elevating It to Assist the Government Fighting Corruption

Abstract Corruption occurs when there is a misuse of current resources to maximize personal benefits at the expense of other parties, causing financial problems and preventing the development of emerging economies. Forensic accounting services utilize financial data to solve legal disputes. Saudi Arabia’s government does not tolerate obstacles that impede the realization of its ambitious Vision 2030, a long-term plan for transforming society and reforming the economy. The war on corruption has been observed in Saudi Arabian domestic policy. Whether the forensic accounting profession and the readiness of accountants qualified to conduct forensic inquiries and investigations are effectively accompanied by the government’s fight is probed. This study explores the current state of forensic accounting in Saudi Arabia. Potential means of employing such status to make Saudi Vision 2030 a reality to combat corruption and the ability of forensic accounting to ease the government’s fight are also investigated. A questionnaire was conducted on 181 participants comprising accountants, auditors, judges, accountancy academics, Oversight and Anti-Corruption Authority employees, and any supervisory body in Saudi Arabia. The results show that 46% of the surveyed participants were unaware of forensic accounting, implying that despite its significance and demand for its services, forensic accounting is undersupplied in Saudi Arabia. Thus, it is inferred that the current state of forensic accounting is below the required level. To address this issue, forensic accounting should be incorporated into accounting curricula, accountants should join specialized scholarship programs and seek to be certified forensic accountants. Policy-makers must develop charter institutions and related forensic accounting standards.

TÜRKİYE’DE MUHASEBE-FİNANSMAN ANABİLİM DALINDA GÖREV YAPAN ÖĞRETİM ELEMANLARININ BAKIŞ AÇISIYLA ADLİ MUHASEBE VE ADLİ MUHASEBECİLİK MESLEĞİ

Dünyada ayrı bir mesleki uzmanlık olarak kabul edilmiş olmasına rağmen, Türkiye’de henüz gelişme aşamasında olan adli muhasebecilik mesleğininin, muhasebe eğitimi veren öğretim elemanlarınca değerlendirilmesi önem taşımaktadır. Bu çalışmanın amacı; Türkiye’de Muhasebe-Finansman anabilim dalında görev yapan öğretim elemanlarının; “adli muhasebeye ilişkin farkındalık düzeylerinin”, “adli muhasebecilik mesleğinde ihtiyaç duyulan konular” ve “adli muhasebe eğitiminin engelleyicileri hakkındaki görüşlerinin”, “adli muhasebecilik mesleğinin Türkiye’de gelişimine yönelik önerilerinin” ortaya konulmasıdır. Araştırma sonucunda araştırmaya katılanların “adli muhasebe farkındalık düzeylerine” yönelik ankette yer alan ifadelere 3,51, “adli muhasebecilik mesleğinde ihtiyaç duyulan konular” boyutu açısından 3,96 ve “adli muhasebe eğitiminin engelleyicileri” boyutu açısından 3,51’lik bir oranla yüksek düzeyde katıldıkları görülmüştür. Ayrıca daha önce bilirkişilik yapılıp yapılmadığı ve yaş değişkeni açısından söz konusu görüşlerin anlamlı düzeyde farklılaştığı, cinsiyet, akademik unvan, eğitim durumu, iş tecrübe süresi değişkeni bağlamında ise söz konusu görüşlerin anlamlı düzeyde bir farklılaşma olmadığı sonucuna ulaşılmıştır.

An exploration of accounting students’ attitudes toward integrating forensic accounting in accounting education

PurposeBecause of the increasing number of corruption and financial fraud cases, especially in developing countries, the education of forensic accounting has become important and universities should offer it as part of its curriculum. This study aims to explore the current status of forensic accounting education in Saudi Arabia as a developing country and its adequacy from the perspectives of accounting students in Saudi universities.Design/methodology/approachA questionnaire survey was administered to a sample of accounting students from four Saudi universities. The questionnaire contained five groups of questions aimed at exploring the students’ perception of the benefits of forensic accounting education, their perception of the current status of integrating forensic accounting in the accounting curriculum and their satisfaction with this status, their desire for greater coverage of forensic accounting in the accounting curriculum, their opinion regarding the appropriate approach for covering forensic accounting in the accounting curriculum and the topics of forensic accounting that should be covered.FindingsThe findings of this study revealed a clear weakness in integrating forensic accounting into accounting education in Saudi universities. This weak level of integration does not satisfy most students who believe in the increased demand for the forensic accounting profession in the future and therefore the need to make greater coverage of forensic accounting in the accounting curriculum to acquire the skills that qualify them to work in this profession after graduation. The students expressed that the appropriate approach for covering forensic accounting in the accounting curriculum is to add a stand- alone course that includes all forensic accounting topics.Practical implicationsThe results of this study provide indications to the administrators of Saudi universities to start developing accounting curriculum to integrate forensic accounting topics into accounting education. This will result in an increase in the effectiveness of the role of these universities in achieving the goals of the Saudi Vision 2030 which aims to achieve transparency and combat corruption and fraud in Saudi Arabia.Originality/valueThis study contributes to the existing literature concerning the forensic accounting by focusing on the integration of forensic accounting in accounting education in Saudi Arabia as context that has not previously examined.

The challenges for forensic accouting profession in Vietnam

Around the world, forensic accounting (FA) has become a popular profession to help prevent and reduce financial fraud with functions primarily including fraud investigation, litigation support, complaints, and witness. However, in Vietnam, forensic accounting is still quite strange in both the field of research as well as professional practice. The reason is that the level of interest and understanding of forensic accounting is still limited. The research data includes (i) the current accounting-auditing training program framework of 45 universities in Vietnam (ii) studies on forensic accounting, and (iii) service activities provided by accounting firms in Vietnam. Research results indicate that (i) there are gaps in research on forensic accounting; (ii) there exist conditions indicating the need for forensic accounting development in Vietnam. Accordingly, the study provides two key policy suggestions to promote the development of forensic accounting in Vietnam, starting from (i) overcoming the challenges facing the forensic accounting profession by promulgating regulations and guidelines guide forensic accounting based on the benefits that this profession contributes to society, and (ii) an initial approach is needed to integrate forensic accounting modules in the accounting and auditing training programs of universities in Vietnam.

Quality Assurance Accreditation Standards and the Forensic Accounting Profession in Nigeria

This study examined the level of compliance of the forensic accounting profession in Nigeria with the Quality Assurance Accreditation Standards (QAAS), and the present state of the profession in the country, using both primary and secondary data. Descriptive and inferential statistics were used to analyze the data obtained from 161 respondents. A significant difference was found between the current state of the forensic accounting profession in Nigeria and the requirements of the QAAS. This study found that the profession lacks statutory regulatory institutions which enable legal frameworks in Nigeria. It was also found that the contribution of Nigerian universities to the advancement of forensic accounting is not significant due to insufficiently trained university lecturers and lack of facilities. This led to an acute shortage of qualified professionals in practice and a low standard of service delivery in the field. Many of the existing practitioners lack the requisite skills to function effectively. We concluded that the profession in Nigeria has not provided the expected impact on the fight against economic and financial crimes, and without QAAS in place the profession would remain powerless against the economic and financial crimes in the country. We recommend that the Nigerian Federal Government should create forensic regulatory institutions to ensure that the forensic accounting profession in Nigeria is focused on best practices and complies with the QAAS requirements.

Forensic Accounting: Competencies and Importance of Forensic Accounting Profession and Position In Turkey

Forensic Accounting: Competencies and Importance of Forensic Accounting Profession and Position In Turkey

Forensic Accounting and Fraud Prevention and Detection in Nigerian Banking Industry Introduction

This study examined the role of the forensic accountant in the prevention and detection of fraud in the Nigeria banking sector. The study adopted the Survey research design while the source of data is the primary data and the data sourced was gleened from copies of the questionnaire administered to selected banks. Three (3) hypotheses were formulated and tested using Simple regression at a significant level of 5%, Independent T-test and Oneway Anova. Findings revealed a negative significant relationship between IFRS adoption and foreign direct investment of Nigeria banks. Findings also revealed that between forensic accounting has a significant impact on fraud prevention and detection. In addition, the findings of this study also revealed that there is a low level of the awareness of forensic accounting in the Nigeria banking industry. Consequently, the study recommended that Nigerian Government should provide the enabling environment for forensic accounting profession to thrive in the country by strengthening the legal, educational and political frame work in the country.

What is the ‘good’ forensic accountant? A virtue ethics perspective

PurposeThe aim of this paper is to explore how virtue ethics might inform our understanding about what constitutes “good” practice in forensic accounting. In particular, the paper explores the concept of phronesis (or practical wisdom) as a basis for guiding the application of professional judgement in forensic accounting practice.Design/methodology/approachThe paper draws on a review of relevant literature.FindingsPrior literature has identified a number of technical and personal characteristics and attributes that are desirable in forensic accounting practitioners. Although being ethical is identified as an important characteristic, the question of what constitutes a “good” forensic accountant has not hitherto been investigated. Because of the profession’s multi-disciplinary and highly technical nature, forensic accountants are significantly at risk of conflating ethics with compliance with the law. The paper suggests that an understanding of virtue ethics and especially the virtue of “phronesis” or practical wisdom will help forensic accountants maintain public confidence and quality in their services and provide practical guidance on the exercise of professional judgement.Practical implicationsThe paper suggests that the primacy currently given in forensic accounting literature and practice to a commercial logic, technical competencies and legal compliance risks damaging the professional standing of forensic accountants and, over time, reduces the ability of forensic accountants to exercise professional judgement in complex unstructured situations. Virtue ethics can act as a useful counter point to these threats.Social implicationsA recognition of the need for the forensic accounting profession to collectively develop phronesis would re-establish the primacy of the profession’s public interest logic and maintain public trust and quality in forensic accounting services.Originality/valueThere appears to be no prior literature in forensic accounting which explores the application of virtue ethics in this field. In addition, although virtue ethics has been the subject of some prior papers in accounting per se, the importance of phronesis as a basis for understanding the nature and application of professional judgement has not been addressed.

Forensic accounting: a blend of knowledge

PurposeThe purpose of this paper is to develop an insight into the skill sets that forensic accounting practitioners need to possess to succeed in the practice of forensic accounting.Design/methodology/approachThe present paper is based on a literature review.FindingsForensic accounting education is multi-disciplinary. It encompasses auditing, accounting, statistics, information technology (IT), legal rules and human skills. It is similar to auditing, yet different. Hands-on statistical tools act like an additional equipment for quick delivery of the output when data are large. Proficiency in using IT tools is a must to detect cybercrimes. Human skills are gaining importance because of social engineering attacks. Forensic accountants must be acquainted and updated with the relevant laws. Various investigative skills and knowledge are also essential in forensic accounting.Practical implicationsForensic accounting education can be developed as a separate discipline for proper regulation of forensic accounting profession. In that case, the need for development of separate forensic accounting standards may arise. This issue needs to be dwelt upon by the academia and professional bodies.Originality/valueThe paper will enable the universities/institutes to design the appropriate curricula, assigning due consideration to the required knowledge and skill sets in forensic accounting education.

Forensic Accounting Versus Expertise Practices in Financial Dispute Litigation: The Sample of Ordu Courthouse

The aim of this study is to question judges’ approach from different perspective to forensic accounting profession which emerged to fight financial crime that increased and diversified as a result of abusing information and technology in the world. In the study litigation support dimension of forensic accounting has focused and tried to associate it with expert practices’ current situation which is substitution of it in Turkey. According to the aim the study was carried out with the help of the Civil and Tax Court judges who are responsible for conducting financial dispute case in Turkey and who are the most likely to benefit from the forensic accountancy profession. Data was gathered from a total of six judges, three civil courts judges and three tax court judges, via semi-structured interviews. Interviews were conducted with staff from Ordu courthouse. Obtained data were analyzed by content analysis. According the results it has revealed that judges have no enough information about forensic accounting. They apply to experts very frequently for financial cases but according to them experts do not meet adequately their expectations and they don’t have all qualifications that they must carry. In addition, it has determined that forensic accounting profession is necessary in our judicial system and by implementation of the profession problems resulting from experts like poor quality reporting and long duration of the cases will be decreased.

Professional scepticism in two economies with cultural differences and the public interest: evidence from China and the United States

ABSTRACTAuditors’ professional scepticism is a topical concern for the audit profession and public interest. This study examines professional scepticism among fraud auditors in the forensic accounting profession in China (CN) and the United States (US). Data are collected from 373 and 401 CN and US auditors, respectively, in two economies with cultural differences. The multinomial logistic regression results indicate that both CN and US fraud auditors have higher levels of professional scepticism than general auditors do. There are no significant differences in traits between CN and US fraud auditors. High-ranking fraud auditors have higher levels of professional scepticism than junior-ranking fraud auditors for both CN and US auditors. The results of our sensitivity analysis validate the main results and indicate the findings’ robustness. Results support the normative pillar of the institutional theory (Scott 1995) that asserts actors (fraud auditors) of institutions would share common norms and beliefs in a social system because they are rooted in professional affiliations (accounting bodies) (DiMaggio and Powell 1983). Our findings contribute to the literature in the arena of the interests of the public and the economy.

Should the Forensic Accounting Profession Be Regulated?

Adopting Huber’s (2012) argument that forensic accounting has become a profession, this paper examines whether the forensic accounting profession and the forensic accounting certification industry should be regulated. Several recent studies have uncovered significant problems within the forensic accounting profession and the forensic accounting certification industry. The failure of forensic accounting corporations to disclose either their legal status or the qualifications of their officers and directors, their failure to publish financial statements, and their failure to adopt or enforce a Code of Ethics or Standards of Practice, were among the most significant problems uncovered. The failures of the corporations were exacerbated by forensic accountants’ failure to investigate diligently the corporations that issued their certifications prior to obtaining their certifications. This resulted in a significant number of forensic accountants holding certifications from corporations that were inconsistent with their beliefs that a forensic accounting corporation should be not-for-profit, and their officers and directors should be qualified. Those studies suggested three alternatives for addressing the problems: voluntary action by the corporations, establishing an independent agency for accrediting the corporations and certifications, and regulatory intervention. However, the feasibility of the recommended alternatives was not sufficiently evaluated to be able to arrive at a conclusion for recommending which alternative should be implemented. This paper evaluates the feasibility of alternative solutions. It concludes that the most realistic alternative is for government regulation of forensic accounting in the form of legislation at the state level.This is the final paper in a series of five examining forensic accounting corporations; the directors and officers of the corporations; the Codes of Ethics of the corporations; and the forensic accountants' diligence in research. The papers were published out of order from the way they were written.

Forensic Accountants, Codes of Ethics and Forensic Accounting Corporations

A survey reveals that a significant number of forensic accountants believe it is important that corporations that issue certifications in forensic accounting be not-for-profit and that these corporations have a duty to disclose their legal status. However, there are for-profit forensic accounting corporations that do not disclose their legal status. Not surprising given this failure to disclose, a significant number of forensic accountants do not know the legal status of the corporations that issued their certifications and many incorrectly believe that the corporations that issued their certifications are not-for-profit. The survey also found that, while most forensic accountants believe it is important that forensic accounting corporations have a procedure for enforcing compliance with their Codes of Ethics, many forensic accountants hold certifications from corporations that either do not have a Code of Ethics or do not have a procedure for enforcing their Codes. Recommendations are made for the forensic accounting profession to adopt and enforce a uniform Code of Ethics and for all forensic accounting corporations to increase transparency by disclosing their legal status. This is the working paper version of the paper that was published in Journal of Forensic Studies in Accounting and Business, 5(1), pp. 70-101. Fall 2013.

Better, faster, smarter: developing a blueprint for creating forensic accountants

Purpose – The purpose of this article, which is based on author's study, is to highlight the essential attributes of forensic accountants and to construct the forensic accountant “blueprint” as a reference for forensic accounting education and training. Design/methodology/approach – This study uses primary and secondary data on forensic accounting profession in Indonesia and the USA. Such data were collected by means of literature reviews, in-depth interviews, and a focus group discussion with a number of forensic accounting professionals in Indonesia and the USA. Findings – The author establishes that the “problem-based” nature of forensic accounting requires a unique approach in producing forensic accountants compared to ordinary accountants. The essential attributes that a forensic accountant needs to possess are mentality, method, and experience. “Mentality” consists of elements such as ability to differentiate the right from the wrong, courage to stand up for what is right, ability to withstand pressures from the works, and puzzle solving mindsets. “Methods” refer to the understanding of the fraud investigation process such as fraud detection, evidences, investigation methods, and investigation report. “Experience” as the third attribute is gained primarily through involvement in fraud investigation process in which a forensic accountant utilizes his or her knowledge previously acquired through education and training. Research limitations/implications – Forensic accounting is a problem oriented skill that may differ across countries. Due to the time and financial resource constraint, this study is limited only on two countries and a small number of respondents. For future study, more countries and respondents should be included in analysis to gain a more complete picture on what constitute a forensic accountant. Practical implications – The results of this study contribute to the development of human resource in the forensic accounting profession. More specifically, they serve as a reference in the development of curriculum for forensic accounting education and training especially in Indonesia. Originality/value – This paper sees forensic accountant skill development from the “demand” point of view by highlighting what that the profession expects from a forensic accountant.

Should the forensic accounting profession be regulated?

Adopting Huber’s (2012) argument that forensic accounting has become a profession, this paper examines whether the forensic accounting profession and the forensic accounting certification industry should be regulated. Several recent studies have uncovered significant problems within the forensic accounting profession and the forensic accounting certification industry. The failure of forensic accounting corporations to disclose either their legal status or the qualifications of their officers and directors, their failure to publish financial statements, and their failure to adopt or enforce a Code of Ethics or Standards of Practice, were among the most significant problems uncovered. The failures of the corporations were exacerbated by forensic accountants’ failure to investigate diligently the corporations that issued their certifications prior to obtaining their certifications. This resulted in a significant number of forensic accountants holding certifications from corporations that were inconsistent with their beliefs that a forensic accounting corporation should be not-for-profit, and their officers and directors should be qualified.Those studies suggested three alternatives for addressing the problems: voluntary action by the corporations, establishing an independent agency for accrediting the corporations and certifications, and regulatory intervention. However, the feasibility of the recommended alternatives was not sufficiently evaluated to be able to arrive at a conclusion for recommending which alternative should be implemented.This paper evaluates the feasibility of alternative solutions. It concludes that the most realistic alternative is for government regulation of forensic accounting in the form of legislation at the state level.

Research on Legal Procedural Functions of Forensic Accounting

Abstract Since its emergence in America, forensic accounting has become an utmost concern of scholars in different countries. Since the introduction of forensic accounting into China in the late 1990 s, most scholars have done research on forensic accounting from the perspective of accounting, but few of them have done it from multiple perspectives like legal science. On the basis of localizing forensic accounting in China, creating forensic accounting profession, and promoting the joint development of accounting and legal profession, we should exp lore the basic theory of forensic accounting, such as its values and functions. Forensic accounting is socio-professional activities which blend accounting and law and has its specific values and functions. Its ultimate goal is to safeguard the property of a legal subject. Forensic accounting can implement powerful legal, economic, social, and political functions. This paper explores the legal procedural functions of forensic accounting to provide a basic clew for establishing a forensic accounting function system with Chinese characteristics.