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