Financial forensic accounting firms are the branch of accounting that deals with extensive review of all financial aspects. This also offers a high level of assurance since forensic auditors or advisers will be representing in a legal review. The forensic auditors, who are experts in forensic accounting, will be representing in a court of law to further explain evidence relating to accounting.
Story From: (big4accountingfirms.org)
Enron’s scandal is the biggest accounting scandal that ever happened. This catastrophe has led to several amendments in the accounting policies and procedures. It led to further review on how financial reports should be presented in a way that the intended users would not be misled and confused.This specialized area of accounting requires intensive training and knowledge in the field of expertise. It also requires tones of courage and confidence. There are instances when the life of a forensic auditor will be in danger because his work may threat someone else. Forensic auditors play a vital role in a court hearing especially in cases pertaining to the legality of the accounting policies and procedures, the reliability, and accuracy of financial reports. They serve as witnesses who swear to tell everything according to their knowledge, analysis and expertise.
Forensic accountants, people who study forensic accounting, played a vital role in the discovery and establishment of the Enron scandal. They were the ones who scrutinized and carefully reviewed the evidences pertaining to accounting. They appeared in court and were able to testify that the accounting loopholes were used by Enron to hide the large amounts of liabilities and able to portray a promising financial status. With the help of the forensic accountants, it was easier for the court to prove that Enron and all others responsible for it are guilty. This has also paved way to better accounting standards to be followed by the firms.