Even though forensic accounting has grown rapidly in the past decade, many people really don’t understand exactly what forensic accountants do. Here is some information about the profession.
- The term ‘forensic’ refers to the application of scientific methods and techniques in the investigation of a crime or a legal issue. Therefore, forensic accounting is often required when an issue is being litigated and a financial argument needs to be decided in a court of law.
- Forensic accountants are specialists at unraveling financial and compliance puzzles for businesses, nonprofits, governmental entities, and individuals, using precise processes and a systematic investigation of data.
- They are usually called on to assist with a search for the facts and for a truthful conclusion after some sort of devious or fraudulent financial activity has taken place.
- Forensic accountants work on bankruptcies, divorces, asset misappropriations, financial statement fraud, contract disputes, damage calculations, shareholder disputes, and a variety of corporate internal inquiries.
- Corporations, charities, and municipalities also engage forensic accountants to conduct proactive fraud risk assessments or to evaluate and bolster their internal controls, so they can prevent or deter fraudulent activity before it occurs.
- Forensic accountants are often certified public accountants (CPAs) but may also have worked for a government agency before retiring and entering the private sector.
Knowing the above, you may realize a forensic accountant could be able to help you. But is it worth it to hire one? Here is how a forensic accountant will add value.
- A forensic accountant who is trained to investigate and solve complicated financial cases combines a depth of specialized expertise with a distinctive outsider perspective.
- They can expand the attorney’s capabilities and provide the resources and facts that support a successful case resolution.
- Leveraging the expertise of the right forensic accountant can help you achieve a more favorable outcome in your case.