BOOK REVIEW: FORENSIC ACCOUNTING

Irwin Professional Publishing, 221 pages

Review by Alexander A.H. Bohtling, CPA, retired from Deloitte and Touche LLP

The term "forensic" is explained in the book as pertaining to, connected with, or used in courts of law, or public discussion and debate. This book explains in substantial detail, the part a forensic accountant takes in investigating financial fraud, and the procedures used in performance of this type of work.

Besides a preface, the book consists
of three parts--perspective of forensic accounting; practical aspects of forensic accounting; and principles of forensic accounting.

Among other things, it explains the services that can be furnished by forensic accountants and the temperament, skills and qualifications needed.

The principles of forensic accounting are well explained, as are the investigation and the gathering of evidence. Separate chapters explain "on book" and "off book" accounting and financial fraud matters.

The author explains that the extent of fraudulent accounting has been increasing in recent years, especially in the computer area. Computer fraud, he explains, frequently is much larger than that in noncomputer accounting and is expanding in number and amount. Specific types of accounting fraud are illustrated, and the methods of coping with them are outlined.

Separate chapters explain the techniques of interviewing and interrogating people who appear to be involved.

The author explains that forensic accounting assignments involve four distinct phases: problem recognition and review planning, evidence collection, evidence evaluation, and report findings.

The importance of evaluating the company's organization and its internal controls is stressed, and the part a forensic accountant provides in litigation services is well covered.

The author, William T. Thornhill, has worked for two of the Big Six accounting firms and subsequently started his own firm, specializing in litigation support, forensic accounting, and fraud investigations.