1. Confidentially issue – since the scrutiny of a
company’s financial records is done by an external forensic accountant, the
chances of leakage of confidential matter is always there. It is true that
their code of ethics clearly mentions that forensic accountants and other
members involved in the scrutiny must not engage in disclosing confidential
data to outsiders, but the possibility of disclosure cannot be nullified.
2. It involves a wide range of investigations since the
investigator goes beyond the financial misappropriation only but how it
happened and people behind it.
3. It requires specialized knowledge in accounting and
auditing the services cannot be issued by any body who does who does not
possess the qualities of an accountant or auditor.
4. It is only limited to criminal matters and financial
crime offences.
5. It involves too many approaches in resolving disputes
in the court of law.
6. Forensic accounting requires special skills such as
investigation accounting and auditing skills.
7. It is not economical to conduct forensic accounting
since it involves wide range investigation. It is cost intensive. To mention
but a few above.