No company can eternally have a foolproof system. In this modern time of global links, every ongoing
company is defenseless to loss and failure. Severe matters involving fraud, exploitation, accounting
anomalies, bribery by employees, joint trick by management, and compliance matters are often backed
up by confidence, credibility, and resources. In this article, we will see the important factors of Forensic
Accounting in the UAE.
What is the legal Framework of Forensic Accounting in the UAE?
The legal Framework of Forensic Accounting in the UAE is;
Anti-Money Laundering Law
The Anti-Money Laundering Law is a keystone of the UAE’s Forensic Accounting regulatory framework. It
necessitates financial institutions to execute strict compliance procedures. AML law helps to prevent
and report money laundering and linked financial crimes.
Regulatory Authorities
● UAE Central Bank monitors financial dealings. It also ensures compliance with Anti-Money
Laundering and anti-fraud obligations.
● Financial Audit Authority supervises government financial practices. It guarantees transparency
and spot transgression.
● Securities and Commodities Authority (SCA) normalizes securities markets. It also stops insider
trading and monetary fraud.
Corporate Governance Laws
The Commercial Companies Law and Federal Law No. 2 of 2015, outline obligatory financial disclosures,
corporate governance criteria, and deception prevention measures. These laws obligate companies to
keep precise financial statements. It also enables forensic accounting investigations.
What are the techniques for Forensic Accounting in the UAE?
The most prominent techniques for Forensic Accounting in the UAE are;
- Conducting research
The first technique is to conduct research for the documents made available to the public. They are the
easiest to get. Also, conduct full background checks of a particular company because it helps to see the
past dealings of the business. Public Documents generally include;
● Information in the public database
● The corporate records
● Any legally available information on the internet
- Conduct Comprehensive Interviews
The next best technique is to conduct detailed interviews. It is an important technique that can
transform a reluctant person into a source of appreciated information. It assists in fully knowing and
understanding all the actualities. An interview must be conducted precisely. It must evaluate the gravity
of the situation and prepare the questions conferring to it. - Collect valid Information
Always go to collect the information which is going to be provided by a confidential and trustworthy
source. Data collected by a confidential source or a confidential informant, all the essential precautions
must be taken to hide the individuality of the supposed cause. A forensic accountant has to try to have
as many confidential sources as possible. The reason behind this is that such sources can almost
guarantee an accurate outcome. - Examine Gathered Evidence
Another best technique is to examine the obtained evidence carefully. It can point to the guilty party
and contribute to understanding the level of the fraud committed in the business. Also, this examination
assists in knowing how protected the company is in contradiction of financial scams and executing
numerous severity actions to stop any such future situation. - Conduct Investigation
The best way in forensic accounting is to conduct a thorough investigation. This can be done physically
or by electronic means. It is one of the predictable measures to discover any fraud. It can be completed
by observing and tracking all the official emails and messages. - Going Secret
This is an extreme forensic technique and should be used only as a last option. It is greatest left to the
specialists as they know how and where to conduct the inquiries. It is important to understand that even
a minor mistake while being secret can signal the crook that something is fishy.
Conclusion
Forensic accounting is very important and helpful in ensuring financial transparency and opposing fraud.
The robust legal framework supports the uncovering and preclusion of financial crimes. As businesses
and financial institutions face progressively complex challenges, the demand for forensic accounting
proficiency continues to grow. This makes it an indispensable tool in the preservation of the UAE’s
economy. It is suggested to avail help from the top consultants in UAE such as FAR Consulting Middle
East. Their team is professional to spot the issues and having experience to address them all timely and
effectively.