Forensic accounting blends auditing, accounting, and investigatory skills to assess financial documents. Forensic accountants often review accounting systems and practices related to criminal and legal investigations.
The field is a branch of general accounting. It takes a holistic view of financial statements and traces the movement of money in order to understand a particular situation.
Forensic accounting involves meticulous record-keeping and often testimony in court. Forensic accountants adjust their methods and goals for each case. They may use both paper- and computer-based investigation techniques.
Forensic accountants rarely make headlines, but the cases they work do. This exciting job requires a level of attention that few people can master. This guide explores this position’s roles and responsibilities. It also details various offices held by those in the forensic accounting field.
Forensic Accountant Duties
Forensic accountants perform a variety of tasks during their investigations. They collect data as they research funds, assets, and similar financial information. Forensic accountants also have knowledge of accounting practices and may offer testimony in court. Responsibilities include:
» Fraudulent Bookkeeping Investigation: Forensic accountants collect accounting records and assess transactions to find misreported and unethical actions. Forensic accountants review corporate, retail, and personal finances. They trace infractions such as kickbacks, misappropriation, and embezzlement
» Anti-Fraud Risk Assessment: Financial accountants look at financial documents and practices to locate areas at risk for fraud. They consider ethics and regulations, and they advise on internal financial controls, response plans, and fraud prevention techniques.
» Due Diligence Contracts: Forensic accountants assess contracts and royalty agreements to identify fraud and abuse. They use background checks to conduct financial investigations into all parties involved. These professionals also perform due diligence responsibilities by taking ethical, legal, and regulatory factors into consideration.
» Litigation Discovery: Forensic accountants collect financial information related to civil and criminal disputes. They gather electronic data, paper documents, and all relevant statements. They also provide legal professionals and authorities with materials at hearings, trials, and arbitrations. Litigation discovery may involve a comprehensive report prepared by a forensic accountant.
» Trial Testimony: Forensic accountants appear in court to testify in civil and criminal matters. Forensic accountants tasked with finding evidence of fraud, embezzlement, and tax evasion may provide verbal confirmation of their findings. Forensic accountants may also offer testimony for plaintiffs or defendants.
» Insurance Claim Investigation: Forensic accountants obtain financial records related to insurance claims. They use these records to determine whether payments made by insurance companies meet policy conditions. Insurance claim fraud detection involves the use of computer software, legal documents, and financial statements to assess false data and misuse of funds.