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What is Forensic Accounting

What is Forensic Accounting?

Show Me the Money How to find hidden assets

When someone owes you money there are times when getting paid can be a problem. Roland Investigations finds hidden funds and does full asset searches. This is especially helpful when you suspect someone of hiding funds to make it appear like they cannot afford to pay their debts. You may need this for collecting on divorce cases, court judgments recovery, liability cases, and several other reasons. There are times when a case goes to court the lawyers involved may opt to employ a forensic accountant. Roland Investigations can find assets hidden by a plaintiff, but the purpose of a Forensic accountant is to prepare and present the financial information to the jury and judge. The forensic accountant digs into accounting practices and discovers if there was something illegal about the methods used. Let’s learn a little more about forensic accounting.

Forensic Accounting: What Is It?

Forensic accounting is a unique field of work that combines the functions of basic accounting with the investigative properties of the legal system. It requires a mastery of several different skill sets, as well as an ability to interpret the broader meaning of numbers in the context of an investigation. Here, we will break down the major functions of a forensic accountant.

When is Forensic Accounting Needed?

In most cases, forensic accounting is called for when a court or other regulating body wants to investigate the accounting practices of a person or business. A major part of the forensic accountant's job is to take numbers and spreadsheets and put them in a real-world context to determine whether a financial crime has been committed, including fraud or embezzlement. However, there is a wide range of non-criminal proceedings which might also require the help of a forensic accountant. For instance, bankruptcy disputes over unpaid compensation may bring a forensic accountant into a civil case. Forensic accountants are often brought in by insurance companies, local and federal investigative bodies, and even public accounting firms. In the most extreme cases, forensic accounting has brought down several international criminal enterprises engaging in security fraud, hiding of assets, and money laundering.

What Are the Forensic Accountant's Responsibilities?

A forensic accountant is qualified to sort through all applicable accounting records, provide a complete analysis, and even make recommendations to a court based upon their opinion. In order to do this, they must compile all evidence in a way that can be easily presented during a court hearing or other legal proceeding. This requires the ability to identify potential crimes and demonstrate the potential financial gain of the individual or business. In some cases, it also means tracing the ownership of a particular asset as it moves between individual or entities and recovering any missing assets that may have been lost or hidden. In many cases, it also requires a thorough knowledge of software applications to run simulations, sort through numerical data, flag accounting errors, and create meaningful reports for legal teams. Forensic accountants may also be asked to appear in court to testify on their findings.

Forensic accounting is a complex job that requires the meticulous care of an investigator as well as a capacity for advanced-level math and legal principles. Forensic accountants must be able to navigate a wide range of computer applications while also feeling comfortable speaking in front of a panel of experts, the judge, juries and legal teams. The complex information needs to be put together in a way that is understandable to those who are important to the outcome of the case.

By Roland Investigations 8-12-2019

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