The field of forensic accounting is used to solve cases involving property including fraud. Forensic means something related to solving crimes or other legal matters scientifically, and should not be confused with medical or genetic forensics.
A forensic accountant uses the best accounting techniques to provide reports and testimony that is suitable for submission in court. Also called forensic auditing, this form of investigation is used for cases ranging from fraud and construction, to civil and marital disputes.
Forensic accountants or auditors are sometimes called to provide expert testimony in court in addition to their investigative reports. They may also be asked to provide litigation support in which case they offer advice and other services to attorneys.
The first thing a forensic accountant does in an investigation is to collect all evidence and secure all relevant documents and other evidence. They will then pour through the records including bank statements, tax records, hard drives, memos, e-mails, correspondence, and ledgers looking for signs of fraud or other irregularities. Once they have examined the records, they will usually conduct interviews of parties and witnesses involved in the case. They will question them about irregularities and may look for inconsistencies in statements and other clues that can help them in solving the case. A forensic accountant may obtain warrants and subpoenas in criminal cases to obtain evidence or to force people to submit to interviews.
When all the evidence examination and interviews are complete, the investigator will then work through the financial history step-by-step attempting to trace to the point where the assets were lost. Once they have finished their analysis, they will prepare reports that include graphs, tables and other addendum, and that are submitted to the court. If the attorneys or judge have further questions, the forensic accountant may be called to testify as an expert in person.
In addition to investigative work, forensic accountants also give litigation support to attorneys who need advice on financial matters. Types of litigation support can include calculating damages and losses.
In civil cases, forensic accountants will work to resolve matters such as business and share valuations, warranty and negligence claims, and breach of contract disputes. In marital and family law cases, the accountant analyses all assets including those that may be undisclosed or difficult to value. They will also distinguish separate property from community property.
Businesses will also hire forensic accountants to help investigate possible misconduct before any charges are made. They may also ask the forensic accountant to help with programs designed to deter fraud or other misconduct as a preventative measure. In some cases, forensic accountants are used to mediate or arbitrate in alternative practices for resolving disputes.
The forensic accountant is often also a Certified Public Accountant or possesses other licenses or certifications. They generally use advanced accounting and auditing procedures, including software accounting programs, during their investigations. Of course, they must also be trained in legal matters from litigation to evidence gathering and legal interviews. The investigative accountant, then, must be trained both in investigative accounting and legal processes. Some forensic accountants are also skilled in non-court matters such as corporate fraud prevention.
A forensic accountant uses the best accounting techniques to provide reports and testimony that is suitable for submission in court. Also called forensic auditing, this form of investigation is used for cases ranging from fraud and construction, to civil and marital disputes.
Forensic accountants or auditors are sometimes called to provide expert testimony in court in addition to their investigative reports. They may also be asked to provide litigation support in which case they offer advice and other services to attorneys.
The first thing a forensic accountant does in an investigation is to collect all evidence and secure all relevant documents and other evidence. They will then pour through the records including bank statements, tax records, hard drives, memos, e-mails, correspondence, and ledgers looking for signs of fraud or other irregularities. Once they have examined the records, they will usually conduct interviews of parties and witnesses involved in the case. They will question them about irregularities and may look for inconsistencies in statements and other clues that can help them in solving the case. A forensic accountant may obtain warrants and subpoenas in criminal cases to obtain evidence or to force people to submit to interviews.
When all the evidence examination and interviews are complete, the investigator will then work through the financial history step-by-step attempting to trace to the point where the assets were lost. Once they have finished their analysis, they will prepare reports that include graphs, tables and other addendum, and that are submitted to the court. If the attorneys or judge have further questions, the forensic accountant may be called to testify as an expert in person.
In addition to investigative work, forensic accountants also give litigation support to attorneys who need advice on financial matters. Types of litigation support can include calculating damages and losses.
In civil cases, forensic accountants will work to resolve matters such as business and share valuations, warranty and negligence claims, and breach of contract disputes. In marital and family law cases, the accountant analyses all assets including those that may be undisclosed or difficult to value. They will also distinguish separate property from community property.
Businesses will also hire forensic accountants to help investigate possible misconduct before any charges are made. They may also ask the forensic accountant to help with programs designed to deter fraud or other misconduct as a preventative measure. In some cases, forensic accountants are used to mediate or arbitrate in alternative practices for resolving disputes.
The forensic accountant is often also a Certified Public Accountant or possesses other licenses or certifications. They generally use advanced accounting and auditing procedures, including software accounting programs, during their investigations. Of course, they must also be trained in legal matters from litigation to evidence gathering and legal interviews. The investigative accountant, then, must be trained both in investigative accounting and legal processes. Some forensic accountants are also skilled in non-court matters such as corporate fraud prevention.
About the Author:
Christopher Williams is a Forensic Accountant and has a wealth of knowledge about the forensic accounting industry. For more information about forensic accounting please visit http://www.begbies-traynorgroup.com.
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