Unlike standard bookkeepers and accountants, the investigative approach of a forensic accountant provides an entirely different benefit for companies. Where there are problems in regard to accounting reports not looking right, suspect spending occurring or things (namely money) literally missing, it’s the job of a forensic accountant to find out what’s going on financially. While a forensic accountant isn’t a law enforcement agent or an investigator per se, they can pull together all the needed documentation to validate an investigation being launched and moving forward successfully. And if you’re wondering, yes, what they discover and document can be used in court, under the conditions that it was ethically-obtained information.
Common Applications
Whether in person or remote, forensic accountants are called in where there is suspected fraud or at least problematic manipulation of a company’s finances. To do this, the accountant goes through every transaction, checking the veracity and validity of each one within the targeted activity range. Unlike an auditor, who samples documents and data to make pattern assumptions about the whole for deviations from the rules, a forensic accountant looks at every aspect in detail. It’s a tremendous amount of meticulous work, but the results tend to be extremely conclusive and solid when problems are found.
The most common situations of forensic examination tend to be situations where money is missing. An employee or manager may be suspected of embezzling, but there’s no immediate evidence. Instead, the forensic review goes over every transaction handled by that person over a period of time. Where there is an issue, the forensic accountant can not only find the instance but establish the pattern of behavior with data analysis tools.
Where to Get Help When Needed
For years, one had to go to an attorney’s office for examinations prior to turning things over to an investigator. In these instances, ironically, the attorney would then bring in help from an actual forensic accountant retitled an expert witness. Today, that convoluted path can be circumvented a bit.
Finding a forensic accountant for hire is a lot easier now, since the field has become much more popular as well as widespread. Forensic accountants are available for both in-person work and handling assignments remotely as well. As long as the examiner has access to the documents that need review, a full forensic examination is very possible even through Internet cloud formats. In fact, it’s often easier to manage with electronic copies, comparison, saving originals from working documents and sharing completed reports as necessary.
Bring in the Right Help When Needed
While no one wants to really know that their suspicions are confirmed about something wrong occurring, a forensic accountant can effectively find the truth and in detail as well, effectively documenting what’s needed for the next steps in correcting the problem. This is the key value of a forensic accountant for businesses today.
