Austin Accountants & CPA Advisor

Forensic Accountants

Forensic accounting is accounting that is capable of passing the highest levels of scrutiny in a court of law. Forensic accountants, also sometimes referred to as forensic auditors or investigative auditors, employ scientific working methods which often include the objective verification of financial records designed specifically to uncover deception. 

Most accounting firms, especially the larger ones, have their own forensic accounting departments. The larger firms may also divide their forensic accounting departments into specialist sub-groups dealing with particular areas of forensic accounting, such as bankruptcy, probate, and personal injury and insurance claims.

Categories of Forensics

Forensic accountants are often involved in civil disputes which may fall into various categories. These can include, for example, disputes arising from company acquisitions, professional negligence claims, and the assessment and quantification of divorce settlements.

In terms of criminal law, fraud is one of the key areas in which forensic accountants are required to analyze and present evidence in court. Basically, fraud engagements will entail an assessment of whether or not the figures presented in a set of accounts are real or designed to deceive. Forensic accountants may also be engaged in criminal proceedings when cases of money laundering and the recovery of money arising from criminal activity are involved.

In summary, the focus of forensic accounting is on the scientific analysis of financial records in order to confirm their accountability or valuation in a court of law.