Fraud in the Financial Statement: the Need for a Paradigm Shift to Forensic Accounting

Social indemnity of frauds in recent decades from the financial losses and public confidence aspects on the health of economic system has been extremely heavy. This outcomes, incurred many and heavy costs on corporation and causes to reduce public trust an ultimately reduce investments in the capital market. This facts and events need to change the pattern of accounting and auditing the basis of court accounting is followed. According, present Article planed to review how the change to the court accounting and improvement process of the court accounting and also to survey wether teaching of this type of accounting could reduce frauds in the financial statements and increase reliance to the audifed financial statements. Findings shows that shifting paradigm in court accounting may increase the chance of prevent and defect frauds in the financial statement. Also the review of researches in other countries has shown that integration and inclusion of court accounting in accounting education programs can be useful to orientation reduce future frauds. This findings requires to change in the context of International Accounting Standard No. 240 (ISA 240) and Iranian Auditing Standard No 240 that cause to increase the scope of responsibility of auditors. Changes that can reduce the occurrence of fraud and scams.