"Forensic Accountants Must Display the Attribute of Trustworthiness

question 22

Essay

"Forensic accountants must display the attribute of trustworthiness." Explain why trust is important in any forensic accountants' professional relationships.

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Definitions:

Bad Debts Recovered

Income received from previously written-off accounts receivable that have unexpectedly been collected.

Bad Debts Expense

The cost associated with accounts receivable that a company is unable to collect, considered as a non-recoverable loss.

Allowance Method

An accounting technique used to estimate and account for doubtful debts, reducing accounts receivable to a more realistic value.

Allowance for Doubtful Accounts

A contra-asset account that reduces the total receivables reported on the balance sheet to reflect the amount expected to be uncollectible.