The relationship between forensic accounting and bank internal auditing: Case study

The accounting frauds and corruption incidents of international and large-scale nature that took place in the 1980's (such as Enron, Arthur Andersen, etc.) emphasized the significance of accounting and auditing. As a result, a specialized profession in accounting and auditing, known as "Forensic Accounting" in the United States and translated as "Adli Muhasebe" in Turkish, emerged. In order to prevent the recurrence of such unfavorable circumstances, the Securities and Exchange Commission (SEC) implemented regulations and enacted laws that mandated the employment of forensic accountants in companies. Various studies have been conducted in the literature regarding forensic accounting, which is not yet practiced as a profession in our country. In this study, our aim was to establish the relationship between forensic accounting and internal auditing, with a particular focus on the relationship between forensic accounting and bank internal auditing (bank inspectors), which is considered the oldest and leading sector in the field of internal auditing. By presenting the work of bank inspectors and demonstrating the definition and activities of forensic accounting, we attempted to show their compatibility. It is evaluated that our study will contribute to the definition and description of forensic accounting, as well as to the efforts related to education and professional formation in this field.