What is a Forensic Accountant

Forensic accountants are CPAs who specialize in resolving any questionable or suspicious financial issues for businesses, nonprofits, governmental entities, and individuals by gathering financial data in an accurate and investigative manner. They are typically asked to assist in the search for facts that would justify any fraudulent activity that has occurred. Their expertise is frequently involved in bankruptcies, divorces, asset misappropriation, financial statement fraud, contract disputes, damage calculations, shareholder disputes, and numerous corporate inquiries.

Related Articles

Forensic accountants are also needed by corporations, charities, municipalities to prevent any future experiences in fraudulent activities by conducting fraud risk assessments and evaluating and strengthening their internal control. 
A certified public accountant is required to work as a forensic accountant (CPA). CPAs will continue to receive additional education, training, and examinations. The American Institute of CPAs (AICPA) certifies CPAs who meet all of the AICPA's qualifying criteria for Certified in Financial Forensics.

The importance of hiring a forensic accountant lies in court cases where when a defendant has been erroneously charged, or when people or entities must prove a case. Forensic accountants provide litigation support to discover and prosecute financial crimes.
Forensic Accountant El Paso

 When should I hire a Forensic Accountant?

Consider the following reasons in hiring for a forensic accountant.
  • Divorce and Marital assets. Finances can be complicated for couples with high net worth value. Especially if the couple is contemplating divorce, a lot of issues will be suddenly discovered such as complex and confusing financial records, obscure assets, far-flung real estate, and private investments. Hence, a forensic accountant is needed to look out for any marital accounts and financial statements. 
  • Mergers and Acquisitions. When a company merges or purchases another, it involves a great deal of financial analysis. Examining financial records by a forensic accountant will prevent possible fraud.
  • Company Audits. Auditing by a forensic accountant will enable the discovery of financial irregularities that may be previously overlooked or dismissed. The methods used by a forensic accountant are not the same method used by a standard accountant’s audit and analysis. It involves a deeper investigation into the financial and IT systems to determine any weaknesses that the company must address to avoid future problems.
  • Contract disputes. The forensic accountant’s role in contract disputes will be the investigation of financial and other records to determine what is owed under the contracted agreement. 
  • Insurance claims. Recognizing the pattern of financial records and determining the true worth of a claim is the role of forensic accountants when dealing with insurance claims. 
  • Embezzlement cases. The possibility of fraud and theft is avoided if a forensic accountant will be asked to investigate especially if a thorough examination is needed that can’t be accomplished by a standard accountant. 
  • Litigation. Forensic accountants are trained to work with attorneys and law enforcement to investigate financial records that will help them to present evidence during litigation. 
  • Inheritance disputes. Forensic accountants can audit large estates so that the minds of concerned parties will be put at rest. 

Have Any Financial Questions?

Whether you’re looking for a forensic accountant or someone to take care of any IRS issues, give our El Paso CPA firm a call and we’ll help you make the right choice for your financial goals! If you have any urgent questions please call (915) 775-1040.

Marcus, Fairall, Bristol + Co., PLLC
Full-Service CPA Firm
230 Thunderbird Dr Ste G
El Paso, TX 79912
Phone: (915) 775-1040
Email: info@marcfair.com
https://g.page/marcfair

Comments

Post a Comment

Popular posts from this blog

Documentation in Accounting

Image
At  Marcus, Fairall, Bristol  the sensitivity of financial data is a top consideration. We have put in place multi-factor measures to ensure the privacy of all of our client files. Safeguarding the privacy of client information is a top priority and these record-handling procedures determine the manner in which we handle, save, and use documentation. Related Articles What Does an Accountant Do? When to Hire a Forensic Accountant How Accounting and Accountants Help Small Businesses What Questions Should I Ask a Business Accountant? Create Standard Operating Procedures A professional company must have a clear procedural system for handling day-to-day tasks. Professionalism necessitates clear data documentation and security procedures. We will create documentation solutions that will allow you to move forwards more efficiently. Your client, employee, patient, and other records are protected, and procedures are streamlined when you use standard operating procedures for record-keeping. Prop
Read more

What is the Difference Between an Accountant and Financial Planner

Image
Accountants would be defined as follows: An accountant is a professional who performs accounting functions such as  audits or financial statement analysis  as well as prepares tax returns and helps those that need tax problems resolved.  As a fairly new specialty, Forensic accountants work with historical records to find answers to questions specified in the project's scope of work.  Typically, these engagements are legal in nature and often Forensic accountants are hired by attorneys. Accountants must  abide by the ethical standards  and guiding principles of the region where they practice, such as the International Financial Reporting Standards (IFRS) or  Generally Accepted Accounting Principles  (GAAP). The most common accounting designations are the  Certified Internal Auditor  (CIA),  Certified Management Accountant  (CMA),  Certified Public Accountant  (CPA), and  Certified in Financial Forensics  (CFF). A Certified Internal Auditor doesn’t need to receive any license in orde
Read more

The Difference between Tax Return and Tax Refund

Image
  What Is a Tax Return? A tax return is a document that you fill out that reports your income, expenses, and tax bill. The document has been submitted to the Internal Revenue Service (IRS). In general, the document will outline how much income you receive, where it comes from, and how much money the IRS withheld for taxes in the previous year. The information is obtained from the W-2 form. Furthermore, the returns include deductions and credits, which usually lower your tax bill. Its complexity is determined by your domestic and financial circumstances. If you have different types of income or life events, you'll need to fill out additional tax forms. Keep in mind that you must file your tax return by a certain deadline; in 2021, that deadline is April 18th. What Is a Tax Refund? A tax refund, on the other hand, is the amount of money that the IRS sends back to you after assessing and revising your tax return. It's more like reimbursing an overpayment you made while filing your
Read more