Forensic accounting Contrast the financial statement auditor's consideration of fraud to that of a forensic accountant
A financial statement auditor is focused on drawing conclusions relative to the fair presentation of financial statements in accordance with GAAP utilizing the concept of materiality. The financial statement auditor samples population and tests balances and transactions after consideration of certain risks.
Forensic accounting is auditing in the sense that procedures are performed in situations where fraud has already been discovered. Forensic professionals not only determine the extent of the fraud, but also focus on the finding the individual who perpetrated the fraud. This form of professional services assists the courts in building a case against the person committing the fraud by giving the details of the audit findings.
Unlike a financial statement auditor, forensic accountants will examine 100 percent of certain populations. They do this to determine the full extent of the fraud. Financial statement auditors may expand their procedures if fraud is suspected or detected, but they follow the concept of reasonable assurance.
A financial statement auditor uses testing and procedures, utilizing sampling and analytics to perform an audit. The forensic accountant, on the other hand, utilizes inquiry and interviews to perform extensive procedures.
The scope and nature of the financial statement audit is always the assertions related to the financial statements under audit. Forensic accounting ranges to more specific engagements from financial reporting fraud, to hidden assets, court testimony and divorce cases.
The deliverable of a financial statement is the written report, or opinion related to the audit of the financial statements. The end product of forensic accounting is a summary of evidence gathered and testimonial evidence for court cases.
Arguably, the skills of both the financial statement auditor and the forensic accountant must be similar in nature. Such skill-sets should include interviewing and listening skills, data gathering and analysis, accounting, auditing and computer skills. The notable differences in skills are those of objectivity for the auditor and the need for reconstruction of balances and electronic data for the forensic accountant.
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Carolyn Steel posits that modern urban residents do not have _______________
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What will be an ideal response?