Businesses lose a substantial amount of money to fraud each year, making preventing and detecting theft important to their livelihoods. Forensic accountants have a vital role to play in protecting a company's finances, but many people aren't aware of the type of work that they do or the benefits they provide. The experienced team at Tudor Wilson & Associates CPAs located in Honolulu, HI, discuss some basic information about forensic accounting.

The Basics of Forensic Accounting

What Is a Forensic Accountant?

Forensic accountants combine their auditing, accounting, and investigative skills to assist with investigative accounting and litigation support. They conduct forensic analysis of financial information, research to identify assets and trace funds, and prepare accounting data for legal proceedings. Forensic accountants are employed by government agencies, banks, and insurance companies to assist in cases of fraud and theft.

Why Are Forensic Accountants Important?

Forensic accountants help companies develop a deeper understanding of their finances, working to minimize losses and maximize revenues. They improve efficiency by examining and investigating a company's financial processes and identifying more effective solutions. Forensic accountants also reduce the risk of fraudulent activities occurring, helping companies avoid legal problems and improve their reputation.

How Are Forensic Accountants Different than Traditional Accountants?

Forensic accountants monitor for employee embezzlement and fraud committed by vendors and customers, going beyond the responsibilities of traditional accountants. While accountants prepare and examine a company's financial records, forensic accountants perform more investigative work. They conduct investigations and apply their accounting background to uncover evidence of financial wrongdoing.

The knowledgeable accountants at Tudor Wilson & Associates CPAs expertly perform a variety of consulting and tax services to their individual and business clients. Give them a call at (808) 592-2000 to speak to a CPA. You can also visit them online for more information about their forensic accounting services.