Question

Forensic means "suitable for use in a court of law." How does that have anything to do with accounting?

a) Forensic accounting involves investigating financial discrepancies.
b) Forensic accounting is not related to the legal system.
c) Accounting and forensics have no common ground.
d) Legal professionals conduct forensic accounting.

Answer 1

Forensic accounting is a discipline where financial expertise is applied to legal issues, involving the investigation of financial discrepancies for use in legal proceedings.

Step-by-step explanation:

Forensic accounting involves investigating financial discrepancies that are suitable for use in a court of law. This field of accounting relates to legal matters in various ways, such as uncovering financial fraud, valuForensic means "suitable for use in a court of law." How does that have anything to do with accounting? It's quite straightforward: forensic accounting is the branch that meshes financial expertise with legal inquiries. The role of a forensic accountant can entail conducting examinations into financial documents, identifying embezzlement or money laundering, and ultimately serving as expert witnesses in court. Therefore, the correct answer to the question is 'a) Forensic accounting involves investigating financial discrepancies.'