Forensic Accounting Theory And Analysis Of The Application

Forensic accounting is a new growth area in accounting by the late of 20th century. It uses accounting, auditing and other techniques in investigation, measurement, litigation and alternative dispute resolution (ADR) to help client resolve the legal related financial problems. As a new system arising from the United states, it has became a fact and played a more and more important role in the legal support system. By now,there exist neither agreements about the theoretic frame of the forensic accounting nor the particular analysis about the cases and practices. So this essay is trying to explore and explain these problems.The author firstly generalizes the basic issues of forensic accounting on the theoretical level. On this basis, this essay put emphasis on the origin and analyses the function. At last, it raises an outline to make forensic accounting perfect in China.This essay is divided into six parts, the main content which has been discussed by each chapter is listed as followed:The preamble is the basic introduction of the purpose of the essay, the method of discussion and the answers to the issue on discussion.The first part is just to discuss the basic theory of forensic accounting and to make certain the conceptual framework including objective, hypothesis, rudimental principles, function and report in China.The second part is focused on the history of the forensic accounting. The author conclude that the magnifying of the economic consequence is accompanied by the geometric increasing of the civil action that were induced by the accounting information, forensic accounting should logically be analyses from that circumstences.Also,the essay indicates the function and significance of the forensic accounting are derived from the limitation of traditional methods in contradicting fraud. For instance, Accounting is still inspiring, but it can't be compared to the legal system.With requirement of detecting fraud, the auditing was compelled to carry out the fraud auditing, but it was doomed to be failure because of the auditing methods and cost.All of this has accelerated the amalgamation of the fields of the accounting and the law and also brought on the birth of a new field—forensic accounting.In the third part, the author mainly introduces the functions of forensic accounting .Firstly, based on the investigation provided by the author to the practice in foreign countries such as the United states, Canada, UK, Australia and so on, forensic accounting should have such functions like investigation accounting, loss measurement and litigation support. Secondly, the essay just to describe the skills of forensic accounting used in these functions and the procesures it should adopted in details.The fourth part is about our country's existing regulations concerning to the forensic accounting and the relative proposes. Firstly, the existing regulations have nothing to do with this problem with the focuses on specific concerted activities. The author advises how to build up a good system of it and construct the forensic accounting standarded in China.In the conclusion, the author collected all his views and suggestions.The essay combines the normative methods and empirical methods in the research and describes systematically the functions of the forensic accounting.