Forensic accounting is the art of auditing specific to fraudulent activities possibly are occurring or have occurred in a business. Here the focus is not the fair presentation of financial statements but the reliability of them due to fraud. Fraud does not only mean stealing cash out of the business it also means misrepresentation of financial statements. I.e. the cashier forges the endorsement of the company checks and cashes them into his pocket. This is stealing (misappropriation of assets) the cash of the company. In another case the company accountant capitalizes marketing expenses. This is also fraud called misrepresentation of financial statements. Both of them are fraudulent activities. Forensic audits can be done any time and the focus could be a specific account or accounts.

Forensic accounting is a branch of professional accounting, as it is affiliated with professional accounting institutes, anddespite its existence on the ground for a long time, it was not officially adopted until 1946 when (Maurice E. Peloubet), apartner in the accounting company (A New York) for accounting, published an article in the accounting magazine entitled(Forensic Accounting) and since that time the term Forensic accounting has been developing significantly in the accountingliterature, especially after The financial crises that occurred in the twentieth century and the bankruptcies suffered by majorcompanies such as (Enron & Tyco) as a result of corruption and financial fraud that occurred in them have differed viewsof Researchers in the definition of Forensic accounting has been defined (Okoye&Ndidika,2009: 39) as the area ofspecialized practice in accounting that describes financial obligations resulting from an actual or anticipated dispute thatserves to provide sustainable accounting analysis to the judiciary that will form the basis for discussion and eventual disputeresolution. (Leiner & Young,2008:3) agrees , describing Forensic accounting as the "application of investigative andanalytical skills for the purpose of resolving financial matters in a manner that meets the standards required by the courts".In light of the above, it is clear to us that Forensic accounting focuses on the issue of accounting analysis in resolving legaldisputes, which means that the Forensic accountant, unlike the traditional auditor, has the ability to analyze and investigatein order to provide appropriate solutions.

It is an Investigation profession, which reads behind lines, to find what exactly happened, and discover manipulation in financial records. then predue report to judiciary, In order to resolve commercial conflicts.