In recent years, this term has come to represent a myriad of services under the umbrella of “investigative accounting”. Essentially, forensic accounting is the application of incisive accounting techniques in the critical evaluation of financial records.
The distinction between “auditing” and “forensic accounting” is simple, although increasingly narrowed. Auditing is performed with the ultimate objective of measuring compliance with certain accounting standards. By contrast, forensic accounting is performed with the ultimate objective of achieving financial transparency, of identifying accounting problems and solving them.