The importance of forensic accounting profession in detecting accounting errors and frauds

Developments in the economic and technological fields in the world have caused changes in the structure and policies of the enterprises and facilitated the businesses to operate on a global scale by increasing their business volumes. This development and change have brought some positive effects for businesses as well as some negative effects. One of these negative effects is that the erroneous and fraudulent transactions observed in the accounting records of some businesses are performed much more professionally. The members of the judiciary and the researchers of crime science are insufficient in resolving the commercial business processes and the related financial crimes that have become more complex with the increasing technological possibilities. This inadequacy has created the need for a new, different, solution-oriented and professional field that works with professional methods. Forensic accountants who have sufficient training, experience and knowledge can respond to the need arising in this sense. Forensic accounting has been applied thoughtfully in the world, especially for the last 40 years. It is a profession that covers many disciplines such as accounting, law, audit, statistics, psychology and information technologies, deals with the solution of legal problems that have been submitted to courts, and deals with the detection, prevention and solution of crimes such as fraud and irregularity. Although forensic accountancy profession has a long past in many countries, it is a new business area in Turkey. In this study, first of all, accounting errors and frauds frequently made in the accounting profession will be mentioned. Later, the concepts of forensic accounting and forensic accounting profession will be examined, and the scope, characteristics, fields of activity and importance of the profession will be explained. Finally, some information about this issue in Turkey will be provided.