Basically, forensic accounting is the utilization of accounting skills to deliver quantitative financial facts pertinent to an issue that's being investigated, challenged, or under legal proceedings. A major characteristic of forensic accounting and fraud investigation is the quest to reestablish a past incident or incidences by delivering financial information aimed at utilization by pertinent participants in certain legal proceedings like criminal or civil cases, mediation, or deposition. There are numerous situations in which forensic accounting may help organizations and individuals in equal measure, such as:

 

Criminal inquiries

 

With some kinds of criminal cases, a forensic fraud investigation may be established, making the involvement of forensic accountants important. As a component a criminal inquiry, an accountant will draw a report and present financial evidence in a way that's professional and to the point.   In the process of investigating fraud committed by an employee or company, the forensic expert will track the funds, figure out and recoup lost assets, obtain forensic intelligence, and carry out due diligence reviews. Additionally, a forensic analytics fraud analysis shall substantiate the validity, type, and scope of fraud under investigation.

 

Legal Proceedings and Company Valuation

 

Forensic accountants will prove vital in any legal proceedings by or against your company, as well as provide answers to valuations issues. As such, introducing the expert early enough to engage closely with your litigation team can be very beneficial. For instance, the accountant may manage to tap into the report from their investigation to get the disputing parties to reach an out-of-court resolution, steering clear of potentially expensive court proceedings. In case the financial contention goes to litigation, your accountant may work with your attorneys in either prosecuting or defending the case.       

 

Professional Testimony

 

It's also possible for a professional focused in forensic accounting to help you as an expert witness when you end up in court following a financial controversy. Such an expert has a deep grasp of your situation, and they can provide a breakdown of your financial records in a clear-cut manner. 

 

Are you party to a financial controversy surrounding a family-owned enterprise conglomerate? If you are, you can resolve the case with the assistance of a forensic accountant. This professional will introduce experience in the examination and testifying in court cases involving complex inter-business transactions between family-owned entities while compiling accurate business valuation reports. And if you're an employee being prosecuted in court over alleged fraudulent expense reporting, an exhaustive forensic audit and expert testimony may be delivered on your behalf to help with the case.     

 

There are several circumstances under which companies and individuals may need the assistance of professionals in the performance of forensic accounting and fraud investigation. In case you're involved in a financial controversy among shareholders, or a fraud case, you can count on forensic accountants.

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