MERITS AND DEMERITS OF FORENSIC ACCOUNTING | ADVANTAGES AND DISADVANTAGES

MERITS OF FORENSIC ACCOUNTING
The following are the merits of forensic accounting:
1.      Forensic Accounting provides expert witness in a competent court of jurisdiction on matters of high technical relevance.
2.      Forensic accounting is also helpful in personal injury claims and motor vehicle accidents in quantifying the economic loses resulting from a motor vehicle accidents and personal injury sustained in the factories.

3.      It is used to prepare with the objective of presenting evidence in a professional and concise manner
4.      Forensic accounting assists in carrying out criminal and specialist investigation for governmental, corporate,professional and private authorities and regulatory bodies such as Nigerian Police Force (NPF), Rapid Respond Squad (RRS), the international police (inter-pol), Nigerian Drug Law Enforcement Agency (NDLEA), Economic and Financial Crime Commission (EFCC) and Independent Corrupt Practices and other related Offences (ICPC)
5.      Forensic accounting is useful in carrying out inquiry in such a manner that the outcome will have application in court of law.
6.      It is helpful in fraud examination and provision of concrete evidence in report writing.
7.      It serves as basis in dispute resolution in legal matters
8.      It provides accounting and auditing analysis.
9.      Forensic accounting is used in quantifying economic damages and calculation of economic loss resulting from breach of contract.
10. It is used to provide documentary evidence and support in financial crime litigation.
11. It is used to reduce instance of business fraud and abuses.

DEMERITS OF FORENSIC ACCOUNTING
The following are the demerits of forensic accounting
1.      It involves a wide range of investigations
2.      It requires specialized knowledge in accounting and auditing
3.      It is only used in criminal matters and financial crime offence
4.      It involves too many approaches in resolving dispute in the court.
5.      Forensic accounting requires special skills such as investigation, accounting and auditing skills.
6.      It is not economical to carry out forensic accounting   
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