V Corporate financial scandals like the often cited

Enron and WorldCom cases of the last few

years is a wake-up call to the accounting
profession and has rejuvenated the interest in
forensic accounting.
V Ôs certainly not a new field.
V Ôs as old as the time it was not called forensic
accounting.

Y
 Ã Ôn ancient Egypt, forensic

accountants who checks the Pharaohs¶ grain,
gold and other assets were called the µeyes
and ears¶ of the Pharaohs.
V Pertaining to, connected with, or used in the
courts of law or public discussion and debate.
V Forensic accounting is closely related to the
legal process and has the potential to be
involved in proceedings in the civil and criminal
courts
V Whereby, forensic accounting provide an
accounting analysis to assist in legal matters
which will form the basic for discussion, debate
and ultimately dispute resolution.
V MForensic and investigative accounting is the
application of financial skills and investigative
mentality to unresolved issues, conducted
within the context of the rules of evidence«..´
[Bologna and Lindquist (1987)]
V 6ost of them assume that forensic accounting
and auditing are the same.
V The things that make forensic accounting and
auditing is differ Ã
½ uditing is the persistent process engaged
by the company to give an opinion on the
true and fair view of the financial statement
½ Forensic Accounting is aimed at detecting
any fraud or irregularities that happen in the
company and is carried out on demand by
the company.
V Why the forensic accounting is rarely being
use in 6alaysiaÃ
½ Ôt will be quit costly if the issue were brought
to court and where it involved forensic
accountant as an expert witness
½ There is no mandatory requirement set by
the regulatory authorities on the company to
conduct forensic accounting
½ There is no specific act or guidelines on
forensic accounting practices in 6alaysia
V The cause that make forensic accounting is not
popular in 6alaysiaÃ
½ 6oney laundering activity is not significant
in 6alaysia as the cases detected were small
½ The system that place by the Central Bank
is considered complete and able to detect
any money laundering transaction
½ The role of whistleblower is important to
divulge the corruption in the organization
½ Forensic accountant needs cooperation from
whistleblower to clarify the issue
¦ apid development in technology is factors that will
contribute to the demand of forensic accounting.
¦ Business have become more complex and thus any
irregularities or fraud in transaction is hard to detect by
regular staff.
¦ As a consequence, the auditing proses is insufficient.
¦ Ôt is important because of attracting an investor inside
or outside this country.
¦ Thus, forensic accounting is a suitable tool to offer
the highest level of assurance
º Forensic accounting is seen as an important tool that
will assist investigator not only to prosecute crimes
such as bribery but also other criminal wrongdoing
such as fraud, money laundering and other white
collar crimes.
º As commercial crimes are becoming sophisticated
and organised, cops need to upgrade themselves
with the latest knowledge to tackle such cases.
º White collar criminal should be given special attention
not only by the police but also bodies like Ônland
evenue Board and Central Bank of 6alaysia.
ë
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