Frauds, financial scandals in multi-national companies gave birth to accounting expert witnesses. With the law getting stricter on issues related to fraud there has been a steep increase in the demand of accounting experts. Scandals are just the tip of an iceberg. The role of an expert is to scan all the company files and find out what went wrong in their accounts. The experts also keep track of all the insurance claims this is done to confirm that there is no deception.
IT sector in 2009 was rocked by one of the biggest scam of all times- The Satyam Computer Services Scam. The accounts of the companies were falsified. None of the top officials had any access to the accounts. The scam is believed to be above Rs 7000 crore. The scam could have been stopped had the company appointed an accounting expert. The scandal led to the downfall of the company and it was over taken by the Mahindra Group.
The expert can be hired by any company. Experts provide a transparency in a company and above that you can be at peace because you know no fraud is occurring under your nose. They keep an eye on every moment related to accounts. They work like hawks. Any fraudulent activity suspected by them is immediately brought under a scanner and the matter is reported to higher authorities. In case of legal litigation the testimony of an accounting expert witness is treated as valid evidence. Another advantage of having an expert in a company is that they detect malpractices earlier than the audit firms can do and it can be rectified immediately before the matter opens up in public, causing image damage to the company.
If an accounting expert is given the task of counting human hair which is an impossible task, they will return with a perfect answer. They scrutinize each and every detail perfectly. Experts are able to do so because of the training imbibed in them. The training makes them perfect and they see what others can’t when it comes to accounts.
A company can also choose to hire an outside firm for scams detection. This can turn out to be a very costly affair and if anything suspicious is detected by them, it would lead to further investigation leading to more expenditure. It is always better for a company to hire an accounting expert and be free of all tensions.
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