You may have heard the term “forensics” before, but have you ever heard it used to describe accounting? It sounds strange at first, but the truth is that forensic accounting is an extremely important field that can help huge companies and individuals take an investigative look at their financial past. Let’s take a closer look at this investigative financial career.
Banks, insurance companies, police forces, government agencies, and even public accounting firms may hire a forensic accountant for their services. Forensic accountants bring together financial evidence, develop computer applications to manage the collected information, and communicate their findings with reports and presentations.
Forensic accountants use their accounting, auditing, and investigative skills to determine what event actually took place in terms of a financial setting. Some of their duties may include:
- Investigating and analyzing financial evidence
- Assisting in legal procedures, like testifying in court as an expert witness and preparing visual aids to support the evidence in the trial
- Calculating and quantifying losses and economic damages, whether suffered through tort or breach of contract in civil disputes.
- Business valuation
Litigation support deals with the factual presentation of economic issues that are related to existing or pending litigation. In this process, the forensic accountant quantifies damages sustained by the parties involved in any kind of legal dispute. They can assist the clients in resolving disputes before they reach the courtroom.
If the dispute does go to the courtroom, the forensic accountant may testify as an expert witness. For example, a forensic accountant may be involved in a case dealing with compensation and benefits disputes. Their knowledge of the courtroom is what sets them apart from typical tax accountants.
The investigation portion of forensic accounting deals with determining whether or not a criminal offense has occurred. For example, a forensic accountant might have a case dealing with identity theft, insurance fraud, employee theft, or securities fraud, which is the falsification of financial statements.
Forensic accountants also deal with civil matters like finding hidden assets in a divorce case, breach of contracts, tort, disagreements of company acquisitions, and more.
The United States Census Bureau data shows that the median household income for New York City is about $50,711. No matter who you are or what your circumstances may be, you may utilize forensic accounting if you feel that you are in need of those type of services. Contact us today for more information on how we can help you.