Is It Time to Regulate Forensic Accounting?
Les Cahiers du Chiffre et du Droit, 3, 104-111, 2015
9 Pages Posted: 3 Jan 2016
Date Written: November 30, 2015
Abstract
Both in US common law or in French codified law, Forensic Accountants aim to serve justice by illuminating technical, financial facts in the context of a dispute or a trial.
According to the American Institute of Certified Public Accountants (AICPA), Forensic accounting services..."generally involve the application of specialized knowledge and investigative skills possessed by CPAs to collect, analyze, and evaluate evidential matter and to interpret and communicate findings in the courtroom, boardroom, or other legal or administrative venue. More simply in a litigation context, the term forensic means to be suitable for use by a court of law. Forensic accounting services include dispute resolution, litigation support, bankruptcy support, and fraud and special investigation." French Forensic expertise is called "Expertise comptable judiciaire." The main difference is due to the fact that French experts are chosen by the judge to help him, whilst US experts are chosen by litigants. Beyond the procedural specificities there is much in common between the two practices: quantification of damages, business valuation, fraud investigation, and knowledge of the rules of evidence and procedure are the main specialized knowledge of both US and French Forensic Accountants.
Keywords: forensic accounting, regulation
JEL Classification: M4, M40, M41, M49
Suggested Citation: Suggested Citation