Forensic Accounting is HOT!
U.S.
News & World Report has
described forensic accountants as "the bloodhounds
of bookkeeping who sniff out fraud and criminal transactions in corporate
financial records." It also spotlighted forensic
accounting as one of the "20 hot job tracks of the future"
and one of eight "careers to count on." (U.S. News and
World Report, 2/18/02, pp.46-48, 50)
WHAT
IS FORENSIC
ACCOUNTING?
Forensic
accounting
is the application of accounting principles, theories, and techniques
to facts of hypotheses at issue in a legal dispute. The field encompasses
every branch of the accounting discipline. Forensic accountants have
the knowledge and skills to detect, investigate and prevent fraud and
white collar criminal activity.
Forensic
accounting is often segregated into two practice areas: Investigative
Accounting and Litigation Support.
- Investigative
accounting involves investigations of criminal matters. Investigations
typically involve employee theft, securities fraud, insurance fraud,
and theft of intellectual property.
- Forensic
accountants provide litigation support by serving as consulting
or testifying experts on fraud-related matters. Such support might
include estimating business interruption losses, conducting business
valuations and ascertaining the cause of audit failures.
WHAT
DO FORENSIC
ACCOUNTANTS DO?
Forensic
accountants assist in resolving civil disputes and criminal prosecutions
involving financial crimes and assist in fraud prevention, asset location
and recovery. Forensic accountants often work with other experts such
as private investigators, forensic document examiners and attorneys
to review facts and develop litigation strategy. They prepare reports
summarizing their findings and may also testify as expert witnesses
in court. Typical engagements include investigations of employee theft,
financial statement fraud, professional negligence, business disputes,
marital disputes, and business valuations.
