Study On Several Basic Problems About Forensic Accounting In China

Accounting related lawsuit is not a new thing, and not just arising in recent years. Forensic accounting practices have existed for many years. But business transactions between economic entities are very simple before, so disputes are settled easily when they occurred, and the effect is insignificant. In that time accounting related lawsuits are resolved by law profession circle themselves and accounting profession circle didn't pay enough attention to forensic accounting practices. Going with the modern enterprise's arising, capital market's springing up and large businesses and international companies' expanding, economic entities affect each other and any business' action will result in a series aftereffects. But with the situations of fraud and accounting related legal issues becoming more and more serious, people begin to pay more and more attention to accounting information .Forensic accounting is brought to the stage and the related theoretical research begins to start.But because of the gulf between circles of law and accounting, accounting profession circle didn't seek the solution inside, but turn to America and England. Therefore forensic accounting of accounting circle and judicial accounting of law circle exist simultaneously in China.In the beginning of a new subject, various matters will arise and there are usually a lot of opinions that contradict each other. Contradictory statements would lower the functions of the theory to guide to practice. It is necessary to study the new subject systematically for theory and practice development. Forensic accounting inevitably is confronted with this situation.Though there are many studies concerning how accounting serves for lawsuit 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 accounting, introduces who will to be a forensic accountant, describe for who and where the forensic accountants to work, discuss how to administer the profession of forensic accounting in this paper.