What Is Forensic Accounting?

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Forensic accounting is a specialty that combines accounting and legal knowledge. During a legal proceeding, a forensic accountant can be extremely helpful to a client who is facing criminal charges. Forensic accounting is a type of accounting that meets the highest standards of accuracy and assurance. Most often, this type of accounting is used when a client is involved in a business dispute or litigation. These professionals analyze financial data and identify any irregularities. They can also help in preparing reports that detail their findings.

The aim of a forensic audit is to uncover alleged frauds and their perpetrators. In order to do this, a forensic accountant must be able to identify internal control weaknesses and alleged acts of malfeasance. The resulting report will help law enforcement agencies file criminal charges or the judiciary system prosecute those responsible for committing fraud. Forensic accountants typically work on complex cases involving large amounts of money.

Forensic accountants are also a valuable resource in cases involving disputes between partners or shareholders. One of the most common topics in such cases is the compensation and benefits that each partner or shareholder receives. Additionally, these professionals can help in matters involving economic losses caused by vehicular accidents and personal injury. Insurers often differ in their terms and conditions, and a forensic accountant can help ensure that the insurance company pays what it is owed.

Forensic bookkeepers also investigate misrepresentations in different fields. These can include contracts differences, illegal tax avoidance, or even a payoff or misappropriation. Forensic bookkeepers can even be brought into the courtroom as observers to give testimony about a particular case.

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