Forensic accounting is most commonly used in which sector?

Forensic accounting is most commonly associated with legal institutions because it specifically involves the application of accounting principles to investigate financial discrepancies and disputes. In legal contexts, forensic accountants provide critical analysis that can be used in court cases, such as fraud investigations, bankruptcy, and business valuations.

The work of forensic accountants often results in detailed reports and testimony that are used as evidence in legal proceedings, therefore establishing a strong link between this discipline and the legal sector. While forensic accounting can also be utilized in government agencies, corporate finance, and healthcare to some extent, its primary and most recognized application is within legal institutions where their findings can be directly applied to litigation and law enforcement activities.