Forensic Accounting
Forensic accounting is the practice of employing accounting techniques to detect and uncover financial fraud and other related crimes. Forensic accounting is a subspecialty within the larger umbrella of accounting which includes auditing, tax and advisory services. Those practicing forensic accounting often play an important role in the investigative stages of a case by providing expert testimony in the court.
At its core, the primary objective of forensic accounting is to detect financial wrongdoing, such as fraud or embezzlement, and provide proof to the court that the individual or company accused is culpable. The perpetrator of such crimes can range from individuals to corporations and government entities.
Forensic accounting often involves spending extensive amounts of time investigating and reconstructing financials, tracking funds and interviewing witnesses. Forensic accountants are often tasked with the responsibility of locating hidden funds. They must search through the company’s systems and documents to determine how funds were diverted or misused.
Forensic accountants often use the same investigative skills and techniques employed in arson, drug trafficking and organized crime investigations as they search for and sort through financial records in order to identify potential problems.
Once they have identified the potential problem, they must then proceed with the task of determining the motive and method behind such financial crimes. This phase of the investigation requires the forensic accountant to imagine themselves as the criminal right in need of understanding their motivations in committing the fraud. In some cases, it even requires them to think like the criminal in order to better understand the criminal’s thought process.
Forensic accountants are also called upon to provide analysis and advice on financial and legal matters. They may be asked to weigh in on the investigative process or even offer advice on the best course of action for an organization to resolve a legal matter.
Forensic accounting is an important field which has seen a great rise in demand in recent years due to the prevalence of white collar crimes. Forensic accountants must be highly detail-oriented and be able to think critically in order to uncover financial fraud and other crimes. As such, it can be a highly rewarding and fulfilling profession for those with the aptitude and desire to serve justice.
