Fraud is a concern for any business that hires employees, accountants or other hired professionals who have access to business receipts of income or funds. Basically, all businesses are at risk of fraud to some degree.
Fraud is most often done in the form of fraud or skimming, acts that can be difficult to detect, even in a small business setting.
Forensic accounting is a financial service that concentrates on identifying or preventing fraud in a business setting; forensic audit conducted by forensic accountants focus on identifying ways in which the business is vulnerable to fraud or identify fraud is being done.
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Embezzlement is the most common form of fraud in a business setting. Without the help of a forensic audit, fraud often may continue for a long period of time, add up to significant financial losses for the company against the fraud being carried out.
If tried, civil fraud cases are often settled out of court, which means that people who commit fraud was able to walk free and commit fraud again.
When a forensic accountant conducts a forensic audit, he investigated business financial records in the search for patterns that could indicate embezzlement or skimming.
Forensic accountants also perform detailed background checks of staff, because those who commit scam often have a past of doing so.