Forensic accounting involves analyzing financial records to investigate fraud, embezzlement, or hidden assets. It has two parts - investigative accounting and litigation support. Forensic accountants investigate and analyze financial evidence, develop tools to assist with analysis and presentation, communicate findings in reports and exhibits, and testify as experts in legal proceedings. The field emerged because auditors could only check for compliance, not detect fraud. Forensic accountants now provide litigation assistance related to quantifying economic damages. Specialization in this niche field has become important due to corporate scandals, demands for transparency, and fast business development.