How Do You Distinguish Between A Forensic Accountant & Auditor?
Forensic accountants and auditors have similar jobs, and many forensic accountants come from an auditing background. Both are kinds of accountants. The key difference, however, is that forensic accountants are hired to investigate specific allegations of fraud. There are questions that you can ask to distinguish the two. Ask this question: Is there a specific allegation of fraud in a company? Forensic accountants are hired to investigate allegations of fraud. Auditors generally perform routine inquiries, generally on an annual basis. The Sarbanes-Oxley Act, passed in response to the nation’s large financial scandals and Enron and WorldCom, requires company executives to certify that their financial reports are free of material misstatement and fraud. A material misstatement is is an error or omission large enough to cause an investor to change an investment decision. If there is a widespread allegation of theft or misappropriation, a company may have engaged a forensic accountant. Exam
