Growth of Computer Forensics
Source: Accounting Today Computer forensics has grown from virtually nothing a few years ago to an important niche today in many CPA firms, including Rachlin, Cohen & Holtz, The field involves the use of computer techniques to retrieve deleted files, recover information from encrypted or damaged files, or analyze data whether related to accounting matters or not. It is useful in cases such as: v Improper use of trade secrets and proprietary information by employees. v Destruction of intellectual property. v Collusion with vendors. v Asset misappropriations and improper disbursements. v Labor and employment issues including sexual harassment and age discrimination. v Collections because of the discovery of hidden assets. Much of the discovery relates to memos or e-mails that people thought they had deleted, but that still resided on their hard drives. In one case, two parties had agreed on a settlement of an outstanding loan through the offsetting of debts. The creditor removed the accounting entry that recognized the settlement so the debt still appeared on its records. It then sued to collect the debt though it had previously been settled. Computer forensics discovered the alteration of the records. A computer forensics expert not only discovers and retrieves evidence, but also helps the client and the attorney interpret the meaning of the information. The computer forensics expert must, therefore, have a background not only in computer forensics, but also in business, accounting, and law. The growth in computer forensics is the result of the use of electronic discovery by lawyers. The Federal Rules of Civil Procedure will soon include provisions for electronic discovery, so even though computer forensics is now being used, it is going to become pervasive. From Accounting Today, June 2005. Click on the following link for the complete article:
http://www.webcpa.com/article.cfm?articleid=13192&;pg=acctoday