Forensic accounting<\/a> described as the integration of accounting, auditing and investigative methods to conduct an investigation into a company’s fiscal reports. Forensic accounting provides a financial analysis suitable for court. Forensic accountants are both a finance expert and a professional investigator who trained to look behind the accounting figures and deal with the business reality of a situation. They are frequently used in fraud cases by businesses, law firms, law enforcement agencies, investment companies and insurance agencies.<\/p>\n Alan Zysman, a noted forensic accountant since 1987, states, \u201cForensic accounting provides an accounting analysis that is suitable to the court which will form the basis for discussion, debate and ultimately dispute resolution\u201d<\/p>\n In today\u2019s complex financial markets world with very complex financial instruments trading around the globe, investment firms, banks, hedge funds<\/a> regulatory bodies and exchanges are often victims of financial crimes such as money laundering, employee theft, embezzlement, spoofing, price manipulation and insurance or securities fraud.<\/p>\n Forensic Accounting in trading can help a company investigate price fixations, stock market manipulations and at times even manipulation of the financial figures by the company\u2019s Board to window dress the financial statements and profit and loss account figures to hide real facts from the shareholders and investment community, for the funds misused or misappropriated by the top management.<\/p>\n The real need for Forensic Accounting came in 2001-2002 with huge corporate financial frauds coming to light, like Enron, and World com.The forensic accountant should be well versed with all business and investment laws (MIFID II<\/a>) at national and international level as financial fraudsters have become more intelligent in their activities exploiting loopholes in the statutes and laws across major financial centers.<\/p>\n The forensic accountant in trading and investments uses all modern techniques and tools in gathering all the data necessary and relevant for his purpose. The various techniques and tools include data mining, finger print identification, order book analysis, laboratory analysis, forged cheques and altered cheques identifying tools, electronic surveillance, email communications etc.<\/p>\n Forensic accounting also requires a great deal of creativity, since one must often explain complex financial concepts (derivatives, forex, cryptocurrencies) to an audience that lacks basicaccounting knowledge. It is not surprising that the American agency, the Federal Bureau of Investigation (FBI)confirmed that \u2018one key element was the creation of a standardized, professional investigative support position known as the forensic accountant in 2009\u2019.Forensic Accounting in Trading<\/h3>\n
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