Forensic Note

Forensic Accounting

Topic 1

Forensic Accounting Practice

* Forensic Accounting and auditors are both concerned with identifying the existence of common risk of factors that results in fraud.

* However, there are differences between audit and forensic accounting.

Differences between audit and forensic accounting

* Audit Standard in addition to the Framework for the preparation and presentation of financial statement are invaluable guidance to forensic accounting.

* Forensic accountants assist auditor in discharging their responsibilities.

Fraud

Definition: Fraud is

* A representation

* About the material point

* Which is false

* And intentionally or recklessly so

* Which is believed

* And act upon on it

* To the victim’s damage

Impact on the fraud victims

* Financial Ruin

* Health risk ranging from depression

* Marital breakdown

* Loss of market confidence

Topic 2

Theft- in section 72, a person steals if he dishonestly appropriates property belonging to another with the intention of permanently depriving the other of it.

* The property must be belongs to other

* Person acted dishonestly

* Person appropriated property

* Person intended to permanently deprive the owner's property

Obtaining property by deception – in section 81, a person who any deception dishonestly obtains property belongs to another, with intention of permanently depriving the other of it, is guilty of an indictable offence and liable to level 5 imprisonment (maximum 10 years)

* Person engaged in a deception

* Person acted dishonestly

* Person obtained ownership, possession of control of property

* Property was obtained as a result of deception

* Property belongs to third parties

* Person intended to permanently deprive the owner’s property

Must prove that the person obtained as a result of the deception. No offence is committed if the property is obtained...