Study On Forensic Auditing

Trust is the foundation of the market economy while the system of trust running normally depends on the law. As the creation of the market economy and the protection of the trust system, auditing is no longer enough for its duties with the developing of the society. There's a great need for the more powerful force to deal with morals risk and contrary choice in the economic world. It causes the power of justice to intervene in the end. As the final power of the protection for the society, the system of justice is no longer able to protect equity and efficiency, while facing the realities that economic activities get more and more complicated and professional. It is in need that other subjects play a role in justice activities. Prompted by the need of the society, it is an inevitable trend that accounting, as the general language of economy, should mix with the law. It would come up a new subject and new theory-forensic auditing.In the beginning of a new subject, there are usually a lot of opinions that contradict each other. But contradictory statements would lower the functions of the theory to guide to practice and even make it like a game. It is necessary to study the new subject systematically for theory and practice development.Though in these two years, there are many studies concerning how accounting serves for justice activities. It is in hot discussion how to establish a new study in this area and to find a position for this new study. But there are few to try to establish a complete theory and the name of the new subject is still in dispute.Because the system of this theory is too large and my ability is limited, it only states what to be forensic auditing, introduces how to become a forensic accountant, describe for who and where the forensic accountants to work, discuss how to administer the profession of forensic auditing in this paper.I think forensic auditing is a collecting and examining evidences, making and expressing the conclusion to the users in (possible) economic litigation or debate, conducted within the context of rules. Forensic auditing is mixture of accounting and law, a kind of subject of auditing. Forensic accountants have special knowledge, comply with their professional morals and rules and are certified to qualifications offorensic auditing. They can work for the court, government and private sections in litigation support, fraud investigation and prevention, financial transactions analysis. If the field of forensic auditing wants to develop, they need organize a trade union under the public oversight and make a specialized body of standard.