Forensic Accounting involves the detailed investigation of fraud or financial manipulation using detailed research and analysis methods. This includes various steps and processes, such as:

1. A detailed analysis of submitted files and documents; e.g., bank statements, financial statements, lease documents, legal documents etc.
2. Conducting research to identify red flags.
3. Preparation of reports based on any red flags identified, including suggestions of next steps.

Forensic Accounting is an important tool both for individuals and businesses for the following reasons:

1. They identify red flags early so that effective measures could be deployed to solve problems.
2. They help protect individuals and businesses from financial loss that occur due to fraudulent activities or manipulations.
3. They are a good way to analyze the books independently to check whether figures are correct or not.