Which of the following best describes the term forensic accounting?
A) It is a discipline that deals with the preparation and analysis of financial statements of companies.
B) It is the use of accounting principles to consolidate financial statements of foreign corporations.
C) It is a discipline that primarily deals with methods of preparation of financial budgets of a company.
D) It is the use of accounting theories, principles, or analyses in a legal action, often through expert witness testimony.

Question

Quizplus · Accepted Answer

Forensic accounting involves the use of accounting principles and analyses in legal proceedings, often through providing expert witness testimony. It focuses on investigating financial records and transactions to detect fraud, embezzlement, and other financial crimes. It may also involve tracing and recovering assets. Option A describes financial accounting, while option B describes international accounting, and option C describes management accounting.

Which of the Following Best Describes the Term Forensic Accounting