Forensic accounting is also known as financial forensics or forensic auditing. It is a part of accounting that look into actual or anticipated disputes. Disputes can vary from business-related litigation to marital dissolution.
For monitoring a business activity, the firms already have accountants but while going through the processes precisely; many improper activities are still observed. In this state, Forensic Accounting plays its role. We handle both litigation support and investigative accounting.
This area covers accounting assistance for current or pending litigation.
For a litigation assignment, we…
assist in obtaining the necessary documentation to support or refute a claim;
examine the relevant documentation to form an assessment of the case;
review the damages report by the opposing expert;
assist with settlement discussions and negotiations;
attend the trial to hear the testimony of the opposing expert and provide assistance with cross-examination.
Occasionally, you may need to explore whether fraud or misconduct has occurred, such as employee theft of property or inventory, misappropriation of funds by employees, kickbacks to employees from outside businesses, securities fraud, and insurance fraud.
With Joyce CLA’s investigative accounting services, we bring to bear our accounting knowledge and experience in the field to give you a clear understanding of the situation. When you retain our expertise, we skillfully…
review the situation and offer suggestions for possible courses of action;
assist with the protection and recovery of assets;
coordinate with other experts, including private investigators, forensic document examiners, and consulting engineers;
assist with any necessary civil action or criminal prosecution.
Forensic Investigations Take a Variety of Forms
The services of a forensic accountant are required for a range of investigations across many different industries.
Here are the most common assignments in forensic accounting:
Disputes Among Shareholders or Partners.
The compensation and benefits given to each of the shareholders or partners is one of the more common issues in these cases.
Personal Injury Claims / Motor Vehicle Accidents.
When economic losses from a personal injury or vehicular accident are in question, a forensic accountant is brought in.
Because insurance policies vary greatly in their terms and conditions, such engagements require a thorough policy review to determine the appropriate method of figuring the loss. A forensic accountant can assist from either the insured or the insurer’s standpoint.
Business/Employee Fraud Investigations.
The investigation of employee fraud often requires a determination of the extent of the fraud. It may or may not include the identification of a perpetrator. Many times, such assignments necessitate interviews of staff who had access to the funds.
Usually, when a dispute of this nature arises, forensic accountants must locate and evaluate the disputed assets, be they businesses, property, or fiduciary.
MBusiness Economic Losses.
These kinds of engagements include contract disputes, construction claims, expropriations, product liability claims, trademark and patent infringements, and losses stemming from an alleged breach of a non-compete agreement.