Question

Define circumstantial evidence and describe why this type of evidence is so useful to a forensic accountant during an investigation.

Answer 1

Circumstantial evidence are those evidence which are the proof of a fact by the other events that are to the main event and provides the necessary information which is a form of evidence to the suspected events which gives the direction by the other interfering event

Forensic accounting is done based on some evidences that attracts this accounting are:-

•If there is any fraud in financial statementsor asset misappropriation

•If there is any litigation support to the transaction like fact finding, transaction testing

•If there is any dispute analysis like proper claim has been made or not

•To check the bankruptcy that the information is correct or not or the valuation of asset are correct or not.