The Study Of Forensic Accounting Litigation Support In China

Forensic Accounting is a new branch emerged in modern society, along the development of economics and legislative works. It combines accounting and the study of law, also requires professional understandings and techniques in Economy, Banking, Financing and so on. Indubitably Forensic Accounting plays a more and more important role in the modern economy. Forensic accounting was early born in the late1970s to the early1980s in America and soon became the20-top-most#1career nationwide, and its demand for forensic accounting specialists increases intensively in UK, US, Canada and other countries. Forensic accounting has great practicality, its development and progresses come from an well integrated economical-legislative system, in turn, forensic accounting returns significant refinement to the system overall. The development of Forensic Accounting is rapidly climbing among the developed countries, but is currently at the beginning stage in China, where started its research platform in the late20th century.Forensic accounting is on the hinge of Law and Accounting, the Forensic Accounting Litigation Support (FALS) meaning the services provided by Forensic Accountant Specialist. Due to the obscure ground-rule in assigning involved responsible parties, the increased amount of financing lawsuit cases, the ever more important financial-accounting proof and records, and the demand of lawsuit efficiency-improvement, the legitimacy and equitability of the FALS provided by the specialists has become impossible to ignore. It is for these reasons, this Thesis extended the research and discussion of relevant topics in FALS, to put forward some theory support and advices, for the FALS businesses and its regulations.The paper mainly focused on normative research and analysis on every aspect of forensic accounting’s litigation support, such as its essentials, contents, features and existing problems. The research combined accounting and litigation together and assessed the newly mixed entity. The outline of the thesis included the introduction, the theory analysis, the discussion, the problem studies and finally the settlement strategy. The paper consists five sections and their summaries are as below:Section1is the introduction, talked about the research background and the significance of the research impact, also the relevant literature review, the research methodologies and the fundamental construction for the paper.Section2gave the basic theories that provided a good introduction to FALS. Firstly about its concept, its main body, its client, businesses and programs; FALS is about the standards taken during the claim-process, the information involves all possible litigious perspectives and special accounting professions. Secondly it analyzed the relationships between the forensic-accounting and the claim-support. Lastly from the theoretical view analyzed the FALS.Section3reviewed the present situation and existing problems of the FALS. It gives an anatomy of FALS in China, based on the history of FALS in China and its factual regulations. In China, we are facing many problems because we are at the beginning stage in researches, theory studies, and practical experiences. This could be reflected from the incomprehensive regulations in FALS. Furthermore, inconsistent performance raised questions toward the independence and neutrality of the Forensic Accountants. The contributing factors (of the mentioned previously) including:different specialists hold different perspectives on the measuring standards, limited existing FALS business experience and other perspectives that demanding the improvement of Forensic Accounting knowledge. This section analyzed the reason behind all, including the insufficient supervision of FALS specialists, the difficulties in controlling the multi-dimensional losses and the factors contributed to such losses, the limited research and analysis in FALS theories, the shortage in advanced-trained FALS people, the un-unified standards in FALS techniques, and so on.Section4used Enron as a case study, from the FALS’s contribution in this case, to provide referencing materials that can hopefully guide the FALS development in China.Section5reviewed the problems in FALS applications in China and promoted some suggestions including:fortify the Forensic Accountant Licensing Regulations, establish unified Professional Forensic Accountant Appraisal/Evaluation system, improve the trainings offered to accounts, the profession management and regulations, and elevate the FALS business recognition.This thesis strives to summarize the problems of FALS in China, and put forward applicable strategies based on analyzing the causes behind. The thesis itself is not perfect and welcoming further improvement. From the continuous research in FALS theories and practices, more and more improvement could be expected in the FALS regulations and FALS businesses.