The Role of a Forensic Accountant

Forensics, from the Latin forensis, means “before the forum”. So how does that play into accounting? Because of legal connotations, a forensic accountant is defined as one “employed in proceedings pertaining to legalities”. A forensic accountant will often find himself testifying under oath in an effort of discerning where, who and why the money is owed, sometimes who stole the money and even whether or not money was stolen at all. In order to come to these conclusions, they must be able to accurately, professionally and legally investigate the evidence. This evidence is usually in the form of bank records, reports, company records, spreadsheets, and other documentation. They work alongside attorneys, company heads and of course, their own staffs.

 

Those professional accountants who specialize in forensic accounting will find themselves investigating white collar crimes. They will often be called upon to verify the degree of fraud and/or embezzlement. Further, they will examine bankruptcy filings to ensure they’re both legal and accurate and will often mediate contract disputes. Money laundering is also an area where forensics and accounting come together – all in an effort to seek the truth.

Once an investigation is complete, the forensic accountant must then, while maintaining the information’s integrity, put into a format that judges and juries will understand. He must not only be an expert in accounting, but he must also understand the intricacies involved in legal settings, including courtroom decorum and ethics.

Accountants, including forensic accountants, require at a minimum, a bachelor’s degree in accounting. Certification and licensing compliance are mandatory, as is a willingness to stay current on local, national and even global laws and regulations. An unblemished history is often required, depending on the position and the employer. After all, accountants must ensure accuracy and efficiency. If their reputations are marred in any way, it weakens a company’s stance in a legal proceeding.

 

Technology is another crucial area a forensic accountant must master. Because of the ever changing digital environment, those who are most successful in this specialty are the ones who stay current with the many advances. They must be able to literally “read between the lines”. The latest in both computer hardware and software are must-haves as is the right support personnel.

 

So what does a client of a forensic accountant look like? Usually, it’s a company’s legal team that will contact a forensic accounting service. The legal team will work closely with the financial minds in an effort to put together a solid case that will either prove a client innocent or prove money is indeed owed him. Of course, there are those times when the evidence proves anything but. A professional accountant will ensure the information, good or bad, comes to light. Those who have no ulterior motives and who are focused on the truth are the ones who will enjoy the most success.

Whether it’s a divorce proceeding or a commercial or international litigation case, forensic accountants work to level the playing field in an effort of ensuring no injustices are done or in some cases, allowed to continue. For those who choose this remarkable career choice, they agree it can be both rewarding and emotionally draining. It takes a level of commitment few other fields require and for those who operate by legitimate ethics and an honest desire to seek and reveal the truth, accounting is a dream career.