Forensic accountants involved in litigation support provide factual reporting of economic issues related to existing or pending litigation. Forensic accountants quantify damages sustained by parties involved in legal disputes and assist in resolving disputes, even before they reach the courtroom. If a dispute reaches the courtroom, the forensic accountant may testify as an expert witness.
Forensic accountants also act in an investigatory capacity, deciding whether criminal matters such as employee theft, securities fraud (including falsification of financial statements), identity theft, and insurance fraud have occurred. As part of the forensic accountant’s work, he or she may recommend actions that can be taken to minimize future risk of loss. Investigation may also occur in civil matters. For example, the forensic accountant may search for hidden assets in divorce cases.
Forensic Accounting Professional Duties include:
- Investigating and analyzing financial evidence such as forged documents and bookkeeping records
- Developing computerized applications to assist in the analysis and presentation of financial evidence
- Communicating their findings in the form of reports, exhibits and collections of documents
- Assisting in legal proceedings, including testifying in court as an expert witness and preparing visual aids to support trial evidence