Importance of forensic accounting in the process of making decisions by the top management

Abstract

In modern business conditions, more and more attention is paid to the introduction of forensic accounting into the regular operations of the company and its development, in order to achieve more efficient and effective controls of all organizational parts in the company. In this context, it is necessary for the top management to be innovatively disposed to apply new solutions that will facilitate the company's operations and through the application of which it will achieve better business results. Forensic accounting is effective not only for detecting and preventing fraud in financial statements and accounting, but also for assessing the damage to the company on that basis. The introduction of forensic accounting is a complex and not at all cheap process that practically begins with the decision of the top management to change the previous accounting policies to a new one, in which there will be an implemented system of forensic accounting. The paper analyzes the connection between forensic accounting and top management, as well as the importance of this special accounting for business decision-making. The aim of the work is to show the usefulness of applying forensic accounting activities, as part of making valid decisions of top management, in the process of regular business operations of the company, which is reflected in raising the level of security of financial reporting and the overall security of the company's operations.