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What Is a Forensic Accountant & What Do They Do? March 1, 2018

Corbin, Whitley
What Is a Forensic Accountant & What Do They Do?, Corbin, Kentucky

While certain companies use fraud auditing to prevent theft, forensic accountants are called upon after criminal activity has occurred. When financial crimes like theft, security fraud, identity theft, and others take place, these accountants perform a thorough investigation to find evidence of criminal activity, which can then be used in court. Use the following guide to learn more about this specialty.

Forensic Accountant Investigations

forensic accountantAs soon as a company suspects fraud, theft, or embezzlement, they can call a forensic accountant to begin investigating. From there, the accountant will look for evidence to determine if criminal activity took place. The investigation typically involves an assessment of the company’s accounting systems and bookkeeping to see if the numbers are accurate.

They also investigate several civil disputes for both businesses and individuals. For businesses, they may get involved in breaches of contract, valuations, and acquisitions and mergers. Forensic accountants are also used in divorce cases to find assets either spouse may be hiding.

Providing Litigation Support

After a thorough investigation and gathering of evidence, forensic accountants will use the information in pre-trial negotiations to resolve disputes outside the courtroom. If the dispute goes to trial, a forensic accountant can serve as an expert witness, providing testimony and factual evidence of criminal activity, as well as quantification of the economic damages sustained by the aggrieved party.

 

If you suspect your company has been the victim of employee theft, fraud, or other financial crimes, rely on a forensic accountant to begin investigating immediately. Working with a certified public accountant (CPA) year-round, however, is critical in preventing such criminal actions from occurring. At Cloyd & Associates, PSC in London, KY, you’ll find everything from payroll services and bookkeeping to tax planning and tax return preparation. If you find yourself in a legal dispute following theft or fraud, they’ll provide you with the litigation support you need. Visit their website to learn more, or call (606) 864-8110 to speak with one of their experienced CPAs today.

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