The Research On Mechanism Of Forensic Accounting In Disclosing Accounting Fraud

Forensic Accounting is a new frontier science, which is combined with accounting and law, it is used to detect fraud or provide proofs at law court. With the development of our country's economy, financial statement frauds have been increasing in numbers and they are more and more difficult to detect for their complexities. Now it is impossible to disclose fraud only by internal control or independent audit. The practices of forensic accounting in foreign countries help us to find a new way to prevent and cure frauds. But it is essential to explain how forensic accounting is used to disclose frauds.In this article, the author discusses the mechanism in disclosing financial frauds in three directions. In order to disclose frauds, the first step is to distinguish frauds. It is usually not easy to distinguish financial frauds. So forensic accounting adopts a different new clue that is conducted by fraud theories and analyzes problems in a thief attitude. In the meantime, forensic accountants give weight to innovation and intuition. After a fraud is detected, it is another important step to throw daylight on fraud. In order to disclose frauds effectively, both forensic accountants'techniques in profession and their professional ethics influence the effect of disclosure, another fact is forensic accounting proof especially forensic report. Furthermore forensic accountants can provide litigation support at law court, which compels fraud-makers to bear legal liability, especially to bear civil liability. In our country's system of expert witness, it is not adequate to develop forensic accounting. In order to use forensic accounting as a means in disclosing fraud, it is urgent to make the judicature's appraisal system perfect.