Forensic Accounting to Detect Accounting Fraud

ENGLISH FOR WRITING PURPOSES

CAN FINANCIAL REPORTING FRAUD BE DETECTED USING FORENSIC ACCOUNTING?

ABSTRACT

This paper discussed the deception occurred in financial reporting statements which continually increased the demand for forensic accounting within the corporate world to help auditors detected and prevented fraud within companies by utilizing fraud methodology and detection techniques through a simulation procedures. Since Malaysian companies are still new and inexperience in managing business and its accounts, forensic accounting was needed to uncover theft, fraud or waste through careful, systematic scrutinization of a company or individual's financial records as it could recognize patterns to indicate the account falsification and manipulation and deletions in records compared to traditional technique. Lastly, new accounting accreditation standards and the revise education became supplement to develop forensic auditing skills.

1.0 INTRODUCTION

1.1 Statement of problem

Nowadays, problems with fraud happen everywhere and anytime regardless who and what reasons they are committing it. There are many types of fraud occurred among workforce since fraud is not only confined to large companies but also it can be perpetrated within a small organization. Generally, fraud may defined as (Dictionary.com, 2007) a misrepresentation or concealment with reference to some fact material to a transaction that is made with knowledge of its falsity or in reckless disregard of its truth or falsity and with the intent to deceive another and that is reasonably relied on by the other who is injured and therefore, financial reporting fraud specifically be defined as international embezzlement or theft of funds from a company or the international misstatement of financial accounts balances in purpose of getting a good perception from people outside that a company is doing better than it really is. As the main purpose of every single business is to maximize their...