What is Forensic Accounting?
Forensic accountants are often called in to testify in legal cases involving divorce, bankruptcy, reorganization, or insolvency.
Forensic accounting is additionally used in fraud cases, shareholder/partner disputes and contractual disputes, insurance claims, credit card fraud, embezzlement, securities fraud and risk consulting.
Professional forensic accounting is a diverse new tool to meet a growing need for everything from re-establishing financials after a natural disaster (such as a hurricane or tornado) to divorce and business partner disputes. Forensic accounting offers an accounting analysis that is acceptable in the courtroom. It can form the basis for discussion, debate, and dispute resolution.
Forensic accountants are involved in litigation support, as well as investigative accounting. A forensic investigation may be grounded in disciplines like accounting, medicine, and engineering.
A forensic accountant may help with disaster relief by determining the circumstances of business interruption loss. For example, in 2010, our firm used forensic accounting to determine BP claims and whether the companies can show causation.
Forensic accountants combine investigation, auditing and accounting to deliver a specialized approach to the subject at hand. They collect and analyze financials for the purpose of shedding light on discrepancies in a courtroom or boardroom.
This information is based on facts, assumptions and representations as stated and authorities that are subject to change. We will not update this information for subsequent legislative or administrative changes of future judicial interpretations.
LEGAL NOTICE AND DISCLAIMER: The information within this web site is for informational and educational purposes only and is not tax advice and should not be used as such. The facts of each individual situation can have significantly different outcomes when applying tax law. The hiring of a CPA is an important decision not to be based solely on advertisements.