Distinguishing Forensic Accounting and Fraud Examination

School: Purdue Global University - Course: NU 450 - Subject: Accounting

Unit 1 Assignment AC465 Adrianna Lujan Purdue Global

ASSIGNMENT 1 Assignment 1 Identifying and combating fraudulent activity frequently involves two distinct fields of expertise. Expertise lies in the areas of forensic accounting and fraud examination. Even though the two terms are sometimes used interchangeably, there are significant differences between them. Both industries face difficulties in identifying and combating fraud, and their approaches to the issue differ. According to Liodorova & Fursova (2018), fraud examination generally focuses on detecting and preventing fraud. Forensic accounting, on the other hand, is primarily concerned with examining financial data and providing expert evidence in fraud-related court cases. To better understand how these two fields contribute to the fight against financial fraud in this circumstance, it is essential to comprehend the primary distinctions between them. The primary goals of fraud examination are investigation and prevention (Sow, Basiruddin, Mohammad, & Rasid, 2018). This involves looking at financial data and gathering evidence to look for signs of fraud. Interviews, document evaluation, and financial data analysis are often assigned to fraud examiners in order to locate suspected fraud. However, the primary focus of forensic accounting (Kaur, Sood, & Grima, 2023) is on the financial aspects of fraud. Using their understanding of finance and accounting, forensic accountants look at financial

ASSIGNMENT 1 data to find any fraud. They could also testify as an expert witness in court cases involving fraud. Another difference between the scope of fraud examination and forensic accounting work is that forensic accounting focuses on specific instances rather than larger organizational issues. A fraud examination is an investigation of an alleged instance of fraud or misbehavior, such as embezzlement or a financial statement fraud. The primary objective of the fraud examiner is to locate the fraud, gather evidence, and suggest measures to mitigate its effects and prevent future frauds of a similar nature.