When Would You Need a Forensic Accountant?

Fraud Investigationswell as an analysis of the directors' shareholdings.
The services of a forensic accountant are usedA business valuation is not only essential as part
to assist companies uncover financial fraud as wellof the sale of the business. It could also be
as identify and evaluate fraud risks. They arerequired when dealing with matters of bankruptcy,
skilled at uncovering crimes such as bribery,a shareholder dispute or as part of a criminal
money laundering, forgery and insider trading. Aproceeding.
fraud investigation could result in the companyDivorce Proceedings
taking legal action. In this event, the investigativeDissolving a marriage financially can be a complex
accountant would be able to offer credible litigationprocess, especially where one spouse has
support.deliberately hidden assets. In such instances, the
help of a forensic accountant can be invaluable.
Forensic accountants assist companies resolveThe forensic accountant reviews the financial
financial issues in disputes. Examples of commercialinformation available to determine if it is accurate
disputes include breach of contract, negligence,and reasonable. A thorough investigation is
loss of profits, due diligence, merger andconducted to determine if there is any deferred
acquisition disputes as well as lending andincome or hidden assets. One method is to
negligence disputes. They can act for the claimant,compare expenditure versus reported income. If
defendant or as an independent expert witness.there is a business involved, the process can
Their value lies in their ability to identify key issuesbecome even trickier. The forensic accountant
and act as an objective facilitator in the disputecan value the business accurately for purposes of
resolution process. If the matter is settled out offairly dissolving the party's financial affairs.
court, all parties concerned save time and money.As can be seen from the examples listed above,
Business Valuationsthe services of these professionals extend
The process of valuing a business accurately is abeyond traditional accounting knowledge and
complex one. The accountant has the skillsexperience. The forensic accountant combines
needed to conduct a detailed investigation of allknowledge of accounting with knowledge of
areas of the businesses finances to uncover theeffective investigative techniques and the litigation
true value. These include investigating the value ofprocess to deliver a highly specialised service.
the assets, property, goodwill, profits, turnover as