What is the main purpose of forensic accounting?

The primary focus of forensic accounting is to investigate financial discrepancies and fraud. Forensic accountants use their accounting skills and investigative techniques to analyze financial data, uncover fraudulent activities, and gather evidence for court cases or other legal proceedings. This includes everything from assessing discrepancies in financial statements to tracing illicit funds. Their work often requires an understanding of legal concepts, making their expertise particularly valuable in legal disputes, regulatory investigations, and criminal cases involving financial misconduct.

In contrast, the other options relate to broader financial tasks rather than the specific investigative aspect of forensic accounting. Evaluating a company's profitability, managing tax obligations, and analyzing stock market trends are important financial responsibilities, but they do not directly address the investigative and evidentiary components that define forensic accounting.