Forensic Accounting Techniques for Solving Countless Issues
Forensic accounting uses high-tech scientific methods to resolve legal accounting issues. A forensic accountant is a highly trained professional with knowledge, experience and expertise in matters related to property crimes. Forensic accounting techniques can disentangle problems related to fraud, civil disputes and marital law cases.
In the business world, by means of forensic accounting techniques suspected fraud and misuse of funds can be traced out. The presence of forensic accountants in companies can help in preventing and deterring such crimes and malpractices. The forensic accountant analyzes the business structure of the company and searches records for possible fraud and mismanagement using the latest forensic accounting techniques. They trace all assets to find out clues required to decipher cases. These accountants can root out possible criminal actions taking place within the company. By implementing forensic accounting techniques and well-planned strategies companies can prevent fraud or misuse of funds.
Forensic accountants can also resolve civil disputes such as:
- Contract related damages and losses
- Breach of contract
- Compensation and business interruption claims
- Company acquisition claims
- Warranty claims
- Personal injury claims
- Business and share valuation
- Professional negligence claims
In case of marital disputes, the forensic accountants play a major role. During divorce cases, forensic accountants help their clients to resolve issues on the division of assets. Division of property can be pretty complicated. There are different issues of pre-nuptial agreements, alimony and child support disputes, and hidden assets to be taken care of. The forensic auditor has to trace all possible assets of the parties involved. Disputes can arise over income, assets, business valuation, or other property valuations. A forensic accountant can help in find a suitable solution. In case disputes arise over valuation and property division among an estate’s inheritors, forensic accountant can come to their rescue.
Forensic accountants have knowledge in accountancy and auditing standards, business and financial reporting systems, and evidence gathering, interviewing and discovery methods and have sound knowledge about legal procedures and requirements. Solving intricate issues without proper knowledge of the law, and forensic accounting techniques can adversely affect your business.