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Forensic means “Suitable for use in legal context.” If an accounting process is done with the purpose of presenting it in a court of law or for a legislative move, it is categorized under forensic accounting. Since every contract or agreement needs legal back up, this branch of accountancy is an integral part of all business related transactions. Regulations for forensic accounting are drafted by the highest court of law in the country and are followed by any organization or individual in applicable scenarios.
The scenarios of usage include insurance claims, royalty contracts, legal suites involving accounting evidences and fraud enquiries. The accounting scenarios are categorized as civil involving breach of contracts or damage claims while criminal accounting is often related to an aftermath or enquiry of fraud.
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