Forensic Accounting: How can it help

Forensic accounting uses state-of-the-art scientificThe forensic accountant helps during divorce
methods to solve legal accounting problems. Thecases by resolving issues on the division of assets.
forensic accountant is a highly trained professionalIn many cases the division of property is
with knowledge pertaining specifically to matterscomplex.
related to property crimes.There may be issues of pre-nuptial agreements,
A forensic accountant can help with problemsalimony and child support disputes, and hidden
related to fraud; with civil disputes, and in maritalassets. The forensic accountant is especially
or family law cases.important when one or both spouses are
How forensic accounting can help companiesself-employed. In such cases, an auditor is often
If a company suspects fraud and misuse ofnecessary to trace all possible assets of the
funds, a forensic accountant can investigate theparties involved. Whenever there is a dispute over
problem. Their presence and activity can also helpincome, assets, business valuation, or other
in preventing and deterring such crimes andproperty valuations, a forensic accountant can
mismanagement.help in finding a solution.
The forensic accountant will analyze the businessIn probate cases, forensic accountants can again
structure of the company and search records forhelp in disputes arising over valuation and property
possible fraud and misconduct. They will trace alldivision among an estate’s heirs. If the
assets looking for irregularities and other clues.deceased owned one or more businesses, for
Companies benefit from use of a forensic auditorexample, assigning a value to these businesses
because of their special training and experience incan be difficult without a legal expert.
rooting out possible criminal actions. TheirAdvantages of forensic accountants
efficiency in these matters saves companies time,As professionals, the forensic accountant is
energy and money. The forensic accountant alsoconsidered an expert in cases of legal property
has expertise in planning and implementingdisputes. They bring to bear all the latest
strategies to prevent fraud or misuse of funds inknowledge in accountancy and auditing standards,
the future.business and financial reporting systems, and
Civil disputes and forensic accountingevidence gathering, interviewing and discovery
Forensic accountants help resolve accountingmethods. They are trained at testifying in court
problems in civil disputes including:and are familiar with legal procedures and
• Tort or contract related damages and lossesrequirements.
• Breach of contractForensic accounting is necessary whenever there
• Compensation and business interruptionis some accountancy problem that must be
claimsresolved legally, but is either too difficult or too
• Personal injury claimscostly to be handled without professional help.
• Company acquisition claimsWithout proper knowledge of the law, and
• Warranty claimsforensic accounting techniques, failure in these
• Business and share valuationcases is a distinct possibility. Courts are very strict
• Professional negligence claimsin procedural matters and only accept high
Auditors work both in calculating and solvingstandards for evidence – areas best suited
accountancy problems and testifying in court.for experienced professionals.
Marital and family disputes