What is Forensic Accounting?
Forensic accounting, sometimes called investigative accounting, is the application of accounting concepts and techniques to legal problems. Forensic accountants investigate and document financial fraud and white-collar crimes such as embezzlement. They also analyze complex financial transactions and estimate losses and damages. [Source: http://legal-dictionary.thefreedictionary.com/Forensic+Accounting]
Forensic Accountants also provide litigation support to attorneys investigating financial wrongdoing from Plaintiffs and Defendants. They provide a critical view of complex financial transactions, including books and records that have been in existence, and are relied upon by others to make decisions that could result in damages.
There are two types of Forensic Accountants:
- Consulting Expert – Performs investigative accounting, evidence gathering financial analysis, and witness interviews without the intent to testify. In Texas, this person is also a private investigator licensed by the State.
- Testifying Expert – Prepares a review of evidence gathered by the Consulting Expert and the law firm, analyzed the evidence and renders opinions and conclusions in a written report, and is prepared to testify at deposition and trial.
The expert may be a Certified Public Accountant, Certified Fraud Examiner or a Specialist, with particular knowledge in their area of specialty, i.e. a retired IRS Special Agent or FBI Special Agent.
The Forensic Accountant can assist the lawyer in the:
- Preparation of request for discovery
- Preparing questions for depositions
- Performing background searches
- Pre-litigation asset searches
- Render a report if the client wants one
Forensic Accounts are useful in cases involving:
- Income Tax Matters
- Minority Shareholder Derivative suit
- Intellectual property
- Money Laundering
- Bankruptcy Fraud
If you require any type of expert witness services or further information on expert witness analysis contact Chief Investigator Edmond Martin of Sage Investigations, LLC at 512-659-3179. Let our 26 years as an IRS Special Agent and the firms CPA experience serve your needs.