FORENSIC ACCOUNTING & INVESTIGATION
Forensic accounting involves the investigation of accounting and financial transactions that are or will become subject to legal proceedings.It is an early step in a potential war, and many times it is the first shot of the was.
The process involves identifying, gathering, analyzing and investigating transactions in a manner where the results can be clearly explained and documented.Guess work is not part of the process, but inquisitiveness is essential in charting the path of what needs to be done.Opinions are presented as an end product or result of the work.The work process should be free of bias or supposed conclusions or leanings.
The end result is a factual and expert presentation of financial and economic issues and possible quantifications of claims or damages that flow from the investigator’s procedures.
The genesis of the process is adversity but some of the conclusions can provide tangible benefits by recommendations of corrective measures that can be implemented to reduce risks of future losses or a tightening of controls.In fact, some of our engagements are not litigation based, but rather are for the purpose to review a company’s processes and procedures to make sure they are being followed and to provide an oversight that they are appropriate for the company and its personnel.
Retaining forensic accountants at a beginning stage in contemplated litigation can result in substantial overall cost and time savings by early identification of issues, scope of discovery, additional areas susceptible to damages and preliminary ball part quantification of damages.It is not unusual for early estimations of potential recoveries to be less than the costs of the litigation, thus curtailing any further actions.
The forensic accountant needs to bring to the process their analytical ability, auditing discipline, persistence, creativity, discretion, organization capability, experience and professional judgment.
Some areas where forensic accountants are engaged are in martial disputes, business partnership disagreements, commercial litigation, loss damages such as from a fire or flood, breach of contracts, royalty and license payments, bankruptcy and pre filing issues, suspected employee theft, falsification of financial reports, insurance fraud and merger and acquisition due diligence audits and preliminary top side reviews.
Non litigation based services: We have a fifteen point program where forensic accountants review a company’s or not for profit organization’s processes and procedures for the sole purpose of offering suggestions to tighten controls, provide greater asset security and to offer suggestions that add value to the company or organization. If you would like further information about this service, don’t hesitate to contact me.
In the event you need or think you might need a forensic accountant, give me a call - early on! Tel: 732 964-9329.