| Forensic accounting involves looking beyond the | | | | of projects that may rely on forensic acconting |
| numbers and grasping the substance of situations. | | | | and finance expertise at the same time, |
| It's more than accounting, which resemble more | | | | 1. Insurance fraud -a. Insurance agent has a lot of |
| of detective work. | | | | access to personal information of his customers. |
| Forensic accountants are financial detectives who | | | | A common fraud scheme found is agent faking |
| audit, investigate and ascertain the accuracy of | | | | the application for his customer to withdraw a |
| financial reporting documents, often in connection | | | | lumpsum loan or some amount of insurance claim |
| with anticipated or ongoing legal action. They are | | | | on the insurance policy.b. People falsify claims to |
| responsible to analyze and highlight any curiosity | | | | insurance companies for compensation. |
| or issues on these financial data, chiefly for the | | | | 2. Construction audits -a. This is to ensure the |
| purpose of investigating white-collar crimes. They | | | | construction company adhere to the quality of |
| work closely with businesses, nonprofit | | | | the materials they have committed for the |
| organizations (including government and | | | | constuctions per the written contract.b. So as to |
| law-enforcement agencies), estates, individuals and | | | | protect those whom has borrowed the housing |
| others who require forensic-accounting services. | | | | loans from. The last amount of the banking loan |
| The forensic accountant may provide assistance | | | | for any construction should only be released to |
| in areas such as:o Investigating and analyzing | | | | the developer/constructor company if the |
| financial evidence;o Quantifying damages related | | | | constructor is at least 90% completion. |
| to income and other losses;o Fraud investigations | | | | 3. Royalty audits - forensic accountant to help |
| of real estate transactions, mortgage lending, and | | | | settle the dispute where in some cases, a |
| business and asset issues in divorce;o Providing | | | | worker, usually a performer, or an artist is owed |
| assistance to counsel in the analysis of financial | | | | royalties for the showing or airing of his work. |
| records in connection with a partnership dispute;o | | | | 4. Matrimonial disputes - Divorce settlements |
| Calculating economic damages related to wrongful | | | | often brought in the skill of a forensic accountant |
| death;o Assisting counsel with financial investigation | | | | to assure both parties get fair settlement, s far |
| in connection with loss of collateral; ando Assisting | | | | as property, and child custody are concerned. |
| counsel and shareholders in connection with | | | | 5. Bankruptcy audits - Investigate cases of |
| misrepresentations affecting business valuations. | | | | bankruptcy, review and present fair conclusion |
| Forensic audits need to be carried out frequently | | | | and judgement if the bankruptcy declare is exact |
| so as to make sure consistent investigations are | | | | and genuine. |
| carried out without fail. Here are some examples | | | | |