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Summary: Forensic accounting looks at accounting fraud that occurs within companies based on an employee's opportunity, motives and pressures. Avoid the fraud triangle by keeping an eye on the accounting books with information from a forensic accountant in this free video on forensic accounting.
Mona D'aunno is a senior partner of Compliant Management Group of Texas, and has been involved in forensic accounting for more than 15 years. She has worked in both the public and...read more
"Hello, my name is Mona and today I'm going to be talking to you about forensic accounting. Forensic accounting, what is the most important part of a forensic accountant? It is the fraud triangle, opportunity, motive or pressure and rationalization. What does that mean? Well opportunity, access. To access the company's records as an AP person or an AR person you have the ability to post payments and you have the ability to make up vendors. That is your access. Motive, pressure, the need, why do the fraud in the first place? You need money, you feel that you would never get ahead unless you can just take a little bit right now but you promise to pay it back later. But if you take a little bit right now, you'll be OK. Rationalization. Rationalization to me is justification and justification means you have the right in your mind to steal from where you're working because you only receive 3% salary increase and the cost of living went up to 7. You didn't get the promotion that you were looking for and you felt like you really needed to deserve it. When you look at this, this is what all forensic accounting basic starts out with is the fraud triangle. So that's forensic accounting in nutshell but remember, if you want your company to be financially healthy, take a look at your books. See you soon."
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