Last Updated on June 14, 2023
Forensic accounting is becoming an increasingly popular service, as many companies realize it is in their best interest to ensure the validity of their accounts pre-empting legal involvement. In this post, we will go over the most popular types of forensic accounting services that these specialists handle. We will also discuss why each service may be important for businesses, and discuss the overlap between services.
How Do Forensic Accountants Investigate?
Forensic accountants use several sophisticated techniques to investigate suspects and evaluate prospects. This can involve modern-day sleuthing techniques such as analyzing the media presence of people to verify claims, conducting interviews with their subjects and others, scrutinizing and double-checking account documents for discrepancies and inconsistencies, and more.
Types Of Forensic Accounting Services
Forensic accounts offer a wide array of services, depending on the needs of their client or law enforcement. This can range from working on dramatic criminal investigations with high-profile subjects to mitigating risks for lenders and debtors, A concise list of many of the services offered are as follows:
Risk Assessment & Prevention
When endeavoring to prevent fraud, FAs offer their services to banks to evaluate borrowers, enterprises, and sometimes criminals. These services sanction banks to maintain their integrity and prevent financial loss and privacy. To assess risks for bank transactions, FAs must assume responsibility for analyzing documents provided by banks on the financial favorability of prospective borrowers.
Criminal Investigation
Forensic accountants often work with government agencies to uncover criminal activity in the financial sector. The variety of criminal investigations that FAs may be involved in is numerous, including primarily fraud and embezzlement that can be associated with bankruptcy, divorce, securities, tax evasion, and more. Banks and governments have lost billions of dollars as a result of fraudulent operations, and FAs are part of a growing solution to help fight against this malfeasance.
Preparing Financial Evidence
In instances where forensic accountants unearth criminal activity, they have the difficult task of consolidating relevant financial evidence for court cases and lawsuits. This paper trail of evidence is critical in case resolution, and for the best outcome for their clients and any agencies they may partner with. Due to the growing rise of cyber fraud in criminal cases, the financial evidence FAs are responsible for is often digital and versatile, and may involve not only legal and account documents but also social media posts and incriminating correspondences between malefactors.
Dispute Resolution Service
In disputes such as divorce and insurance claims, FAs will often work diligently on behalf of an individual or entity they are representing. This type of case can extend and is not limited to corporate valuation disputes and professional negligence claims as well.
Pre-Emptive Audit Service
For companies that prefer to verify the integrity of their employees and accounts internally, FAs are a great option to proactively maintain best practices as a business. FAs may be able to spot troubling outcomes before they become of serious legal concern, and keeping a forensic accountant on staff will ensure that a company is demonstrating the spirit of cooperation to the fullest extent with government agencies.
Do Forensic Accountants Carry Guns?
Forensic accountants aren’t required to carry a gun, nor are they issued weapons by the FBI.
Timothy Gallagher, an FBI section chief, has stated “They do everything an agent does except for execute arrest warrants and carry a gun.”
Conclusion
There are many types of forensic accounting services, and this post should provide you with some idea of the versatility that FAs can offer for your business. Don’t let yourself be a victim of fraud. Let us show you how our forensic accounting services can help you get justice and protect your bottom line.
