Question

Which of the following is the best definition of Forensic Accounting?

		The practice of applying defined financial ratios to investigate a companies financial health.
		The use of law enforcement to subpoena financial records to determine unlawful actions.
		The application of investigative and analytical skills for the purpose of resolving financial issues in a manner that meets standards required by courts of law.
		The investigatory arm of the Securities and Exchange Commission.

Answer 1

Answer :

The application of investigative and analytical skills for the purpose of resolving financial issues in a manner that meets standards required by courts of law. (Option C)

Explanation :

Forensic Accounting represents specialized  investigative and analytical skill sets in the area of accountancy & audit which is conducted in application of standards as required by courts of law in order to resolve various financial issues in an organisation.