Financial reporting misconduct is more common than you might realize. And yet, it can be difficult to explain and detail this type of fraudulent activity in front of a jury. Testifying in court without the assistance of a forensic accountant can be difficult, or even impossible.
Sometimes, this type of fraudulent activity can be a mistake as opposed to a financial crime. It often takes the skills of a forensic accounting consultant to detect the difference.
And though you have certainly heard of financial crimes, perhaps you are less familiar with what forensic accounting is. Or, more importantly, why a forensic accounting consultant is necessary.
When it comes to testifying in court, a certified public accountant that specilizes in fraud examination can provide overwhelming litigation support. In fact, forensic accounting is the only way to ensure that financial records have been thoroughly analyzed, deciphered, and conveyed.
Let’s break down how forensic accounting works, and what makes forensic accounting so important.
Forensic Accounting Consultant
Forensic accounting is a particular area of accounting finance. Specifically, this role investigates whether accounting firms, insurance companies, or other businesses engage in financial reporting misconduct.
Forensic accountants are CPA’s who specialize in fraud examination. They are skilled in deciphering financial transactions and exploring fraud investigations on a deeper level. Essentially, the role of a forensic accountant is to review all types of financial information. Once reviewed, this fraud examiner can provide expert witness testimony about any discovered financial behaviors.
Forensic accountants need to be certified public accountants (CPA) through the American Institute of Certified Public Accountants (AICPA).
Common Examples of How Forensic Accounting Works
Hiring a forensic accountant can be done for all sorts of reasons pertaining to accounting finances. However, some examples of financial crimes are more popular than others. Some such examples are tax evasion, money laundering, embezzlement, misappropriation of funds, check kiting schemes, fraudulent inducement, etc.
These are terms you have certainly heard of, in addition to the larger notion of financial fraudulent activity as a whole. But did you know that the role of a forensic accounting consultant was created to help identify and address these types of crimes? In order to adequately and efficiently investigate financial fraud, one must be a CPA that is highly experienced in fraud examinations. And this is precisely why a forensic accountant is so important.
There is a misconception that forensic accountants only testify in court, or provide expert witness into financial fraudulent activity. While these duties are certainly part of the role, they do not paint a complete picture.
Hiring a forensic accountant can be done by a firm for any reason. For instance, a business might simply want help monitoring certain parts of its operations, or its operations as a whole. This might not be because there is any suspicious activity occurring. Perhaps the firm just wants a level of oversight into the financial transactions and reporting of the in-house accountants.
In this way, accounting forensics makes sure a firm’s financial records are accurate and there is no foul play. This can help a business with its overall finances, enabling it to remain accurate and compliant in ongoing financial reporting. Additionally, these services help a business navigate audits, law suits, allegations, litigation, and/or other financial record examinations with confidence.
Not Just Financial Crimes
The role of a forensic accountant is not merely to testify in court to prove fraudulent activity or financial crimes. Sure, this is an important part of accounting forensics, but not the entire slate of responsibility.
Certified fraud examiners can also ensure that accounting finance is done cleanly and that mistakes are addressed immediately. After all, any type of organization (or individual) is responsible for providing accurate and complete financial information, for taxes, business partners, shareholders, or otherwise. Forensic accounting consultants can both help prevent financial crime, as well as expose it.
Because of this range of specific skills, these CPA’s with extensive experience in fraud examination are in high demand.
Let Joey Friedman Handle Your Forensic Accounting Needs
Hiring a financial accountant is a smart move when it comes to certifying financial transactions as either fraudulent or not. And Joey Friedman knows the difference; he has a proven track record of successful fraud investigations and detection. Simply put, Joey Friedman is the CPA for the job.
Whether you need professional expert court testimony or a fraud examiner to investigate the books, Joey Friedman is your man. Not only that, but he gets the job done in a timely fashion, and to the satisfaction of the hiring parties.
Take your accounting finance needs seriously by letting Joey Friedman handle your forensic accounting needs.
