The term forensic, if you look it up in a dictionary, comes from Latin and means belonging to, used in, or suitable to courts of judicature. Forensic science then is the application of a broad spectrum of sciences to answer questions of interest to the legal system, typically in relation to a crime or to a civil action.
Forensic accounting is a special practice area of accounting that describes engagements that result from actual or anticipated disputes or litigation. Forensic accountants must follow strict rules and procedures in their assignments as the results of their work generally must be admissible as evidence in court. They must understand not only business information and financial reporting systems, accounting and auditing standards and procedures, but also evidence gathering and investigative techniques, and litigation processes.
As a part of their work, they are frequently called as expert witnesses before courts. Forensic accountants are also increasingly playing more proactive fraud risk reduction roles by designing and performing extended procedures as part of the statutory audit, acting as advisors to audit committees, even testing and designing anti-fraud programmes for their clients.
