FORENSIC ACCOUNTING

FORENSIC ACCOUNTING

Forensic accounting, sometimes called investigative accounting, involves 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 provide litigation support to attorneys and law enforcement agencies investigating financial wrongdoing.

Many different organizations consult foren-
sic accountants. Corporations hire forensic
accountants to investigate allegations of fraud on
the part of their employees, suppliers, or cus-
tomers. Attorneys consult forensic accountants
to obtain estimates of losses, damages, and assets
related to specific legal cases in many areas of the
law, including PRODUCT LIABILITY, shareholder
disputes, and breaches of contract. In criminal
investigations, forensic accountants analyze
complex financial transactions such as those in
STOCK MARKET manipulations and price fixing
schemes. They also help governments achieve
compliance with various forms of regulation.
Forensic accountants typically become
involved in financial investigations after fraud
auditors have discovered evidence of deceptive
financial transactions. After conducting an
investigation, they write and submit a report of
their findings.When a case goes to trial, they are