The Object Of Forensic Accounting Investigation: Accounting Evidence Analysis

With the soaring of economic crimes as well as the civil economic disputes, the financial accounting evidence becomes increasingly important in the decision-making of the counts. However, due to the lack of professional knowledge, it is hardly for the plaintiff and the judicial institutions to make the precise judgment towards the accounting-related issues. This concern gives birth to the forensic accounting. The major concern of forensic accounting is the investigation regarding the accounting information given. It also facilitates both parties in litigations. Therefore, such accounting information is one of the most important aspects of forensic accounting and the analysis of accounting evidence is the main focus of the paper.The paper includes five parts. After the introduction of some forensic accounting principles, the paper further discusses the definition, characteristics, category of the accounting evidence and justifies the close relation between the accounting evidence and forensic accounting. Based on the characteristics of accounting evidence, the paper provides the basic principles of collecting accounting evidence which are objectivity, legality, independency and prudence. In addition to this, the paper analyses the method of collecting, keeping and confirming accounting evidence. To be adopted by court as evidence of proving economic facts, the accounting evidence must possess the proving ability. Such proving function would make difference only when there is a complete evidence chain and all the accounting evidences are systematically combined.Another part of the paper is about the electric accounting evidence which is quite arguable regarding its reliability to be adopted. Computer forensic is important in collecting and keeping computer accounting evidence.The final part of the paper focuses on the legal level of the accounting evidence and provides some suggestions in relation to the policy of"expert witness" and judicial appraiser. The paper suggests setting up a system of combination of accounting expert witness and judicial appraiser. Compared to other countries, the paper provides the suggestion of compulsory responsibility of providing accounting evidence, which aims to improve the efficiency and impartiality of accounting evidence applied in litigations.