The Basics Of Forensic Accounting: What You Need To Know
On first glance, the term “forensic accounting” sounds like a mix of the show Criminal Minds and the movie The Accountant. While we can’t quite claim something so exciting, we can claim that forensic accounting is every bit as important.
A forensic accountant is like a bloodhound, sniffing out inconsistencies in economic activity, acquisitions, valuation, and other aspects of a person or company’s finances.
In this article, we’ll discuss the role of a forensic accountant and why you should only hire the best.
Litigation and Investigation
Forensic accountants generally work in litigation support or investigation. Litigation support is the compilation and presentation of the facts of economic material related to pending or existing litigation. For example, if a high-ranking executive has been using shady methods to skim money from the company, a forensic accountant would compile all of the evidence to be used in a court of law.
Investigation involves determining whether criminal activity has occurred and compiling evidence. A forensic accountant could be used to search for fraud or embezzlement, or in a divorce case to find hidden assets.
If you didn’t think accountants were cool, you obviously never been introduced to forensic accounting.