Forensic Accounting Specialists

Due to the complex nature of forensic accounting work, extensive experience is needed to investigate fraud and uncover past transactions and events. A forensic accountant requires strong investigative skills and knowledge of the legal system. 

Forensic Accounting Explained

Also known as financial forensics, there are two broad areas of forensic accounting – investigation and litigation support.

Investigation

A forensic accountant may be commissioned to investigate whether a theft, fraud or embezzlement has occurred and how. Forensic accountants need to be suspicious of every individual and transaction they are investigating.

A forensic accountant usually studies a situation after the fact while a fraud auditor’s role is to provide control so that theft or fraud is less likely to occur.

Litigation Support

Using their accounting knowledge and skills, a forensic accountant applies their experience to legal issues. They must have knowledge of the courtroom to be able to testify as an expert witness. A forensic accountant may be used to quantify damages sustained by a party in a legal dispute and may help in resolving disputes before they reach court.

The forensic accounting process may include the following steps:

1. Investigate and analyse financial evidence
2. Use computer programs to assist in interpreting and presenting evidence
3. Prepare documentation of findings in reports and exhibits
4. Appear in legal proceedings as expert witness, if called upon

To appear in Court to testify as an expert witness and prepare visual aids, a forensic accountant must be familiar with legal concepts and procedures.

When Forensic Accounting is Required

There is a variety of situations where forensic accounting services are required including when:

• A financial claim has been made
• Evidence is necessary for a prosecution
• Assessment of risks

Who May Commission a Forensic Accountant?

A variety of public and private organisations may need the services of a forensic accountant including government agencies, police, insurance companies, banks and private companies such as law firms.

These organisations may call on a forensic accountant to investigate:

• Money laundering
• Proceeds of crime
• Bankruptcy and insolvency
• Losses and economic damage from breach of contract
• Disagreements in company acquisitions
• Business Valuation
• Tax fraud
• Hidden asset in a divorce case
• Economic damages calculations
• Professional negligence
• Asset recovery

Forensic accountants may also be used in a proactive role assisting internal audit departments in writing procedures for an audit and advising audit committees on fraud deterrence and investigation.

Forensic Accounting Expertise

If your organisation is looking for a forensic accountant, look for one with strong experience in all facets of the role - financial, legal and investigation. You will want peace of mind that your forensic accountant can complete a thorough analysis and provide reliable, accurate documentation suitable for use as evidence in a Court of Law.

More information on Forensic Accounting Experts

If you think that your company requires assistance in business matters such as these, it is advisable to speak to an expert or an agency for information on choosing a capable forensic accounting expert to resolve your business issues.