By Joey N. Friedman, CPA, ABV, MAcc, MIB — President, Joey Friedman CPA PA. This article is published by Joey Friedman CPA PA, a Florida professional association. All forensic accounting, business valuation, expert witness, and litigation support services described herein are provided by Joey Friedman CPA PA. Mr. Friedman’s professional credentials and experience are exercised in his capacity as an officer, agent, and licensed CPA practicing under and on behalf of Joey Friedman CPA PA.
Quick Answer
A forensic accountant is a CPA who applies investigative and analytical skills to financial records for litigation, disputes, fraud examinations, or regulatory matters. In Florida, the most common engagements are divorce (hidden assets, income normalization, business valuation), shareholder disputes, economic damages, and elder financial exploitation. A forensic accountant typically holds the CPA license plus credentials like ABV (Accredited in Business Valuation) for valuation work or CFE for fraud examination — and is expected to testify as an expert witness.
The internet has lots of definitions of forensic accounting. Most of them are accurate but not very useful — generic descriptions that could apply to a hundred different jobs in financial services.
This article is the honest definition from a working Florida forensic CPA: what forensic accounting actually is, when you actually need one, and what credentials matter when you’re choosing.
The Definition That Matters
A forensic accountant is a CPA (Certified Public Accountant) who applies accounting, investigative, and analytical skills to financial questions arising in litigation, disputes, fraud investigations, or other matters where the financial picture is contested or unclear.
Three things matter in that definition:
CPA license. Forensic accountants are CPAs first. The license requires passing the four-section CPA exam, completing 150 college credit hours, accumulating professional experience, and meeting continuing education requirements. Without the CPA license, someone calling themselves a “forensic accountant” is using a label without the underlying credential.
Investigative skill set. Forensic accountants specialize in situations where the standard accounting framework needs to be adapted — fraud is suspected, records are incomplete, parties are disputing, or the question being asked isn’t the question the standard records were designed to answer.
Litigation context. Most forensic accounting work supports a legal matter: divorce, fraud lawsuit, partnership dispute, expert witness engagement, criminal case, regulatory matter. The work product is typically created with the expectation that opposing counsel will challenge it.
If those three elements aren’t present, the work isn’t forensic accounting — it’s something else.
What Forensic Accounting Is NOT
Equally important is understanding what forensic accounting is not:
It’s not auditing. A financial audit follows standardized procedures applied uniformly to financial statements. Forensic accounting addresses specific questions with methodology tailored to the matter. The two can overlap (a forensic audit is a hybrid) but they are distinct engagement types.
It’s not tax preparation. Tax preparers complete tax returns. Forensic accountants might analyze tax returns to identify unreported income or fraud, but they’re not preparing them.
It’s not bookkeeping or accounting services. Forensic accountants don’t typically keep books or perform regular accounting close work. Their work is engagement-specific and focused on investigation.
It’s not financial planning or investment advice. A financial planner helps individuals plan their finances. A forensic accountant analyzes the financial past — typically because someone alleges something went wrong.
It’s not just “fraud detection.” While fraud investigation is a major part of forensic accounting, the field is much broader. Business valuation in litigation, economic damages calculation, marital asset tracing, expert witness testimony, and corporate investigations are all forensic accounting work that may not involve any allegation of fraud.
When You Actually Need a Forensic Accountant
You need a forensic accountant when:
You suspect financial misconduct. Embezzlement at a business, a partner skimming funds, an employee falsifying expenses, a fiduciary mismanaging an estate — anywhere financial misconduct is suspected and the financial picture needs to be investigated.
You’re going through a high-asset divorce. Especially when one spouse owns a business, has variable compensation, has significant investment assets, or where there’s any suspicion of hidden assets or income suppression.
You’re a party to commercial litigation. Breach of contract claims, business torts, intellectual property disputes — anywhere the financial damages need to be quantified or contested.
You need an expert witness. Court matters involving financial analysis often require a credentialed expert to testify. Forensic accountants are routinely retained for this role.
You’re managing an estate or trust. Complex estates, trust disputes, or fiduciary breach allegations often require forensic accounting analysis of the financial activity.
You need to evaluate the opposing side’s expert report. When the other party submits an expert report (business valuation, damages calculation, financial analysis), a forensic accountant can evaluate it and prepare a rebuttal.
When You Don’t Need a Forensic Accountant
You probably don’t need a forensic accountant when:
You need ordinary accounting work. Tax preparation, bookkeeping, monthly financial statements — your regular CPA handles these.
You’re going through a simple, uncontested divorce. If there are no business interests, no concealment concerns, and the asset division is straightforward, the forensic accounting expense isn’t justified.
You’re looking for “an accountant to look at the numbers.” Without a specific question or dispute, a forensic accountant doesn’t have a defined engagement. Engage one when there’s a particular issue to investigate.
Credentials That Matter
When selecting a forensic accountant, several credentials are particularly relevant:
CPA (Certified Public Accountant). The foundational credential. State-licensed.
ABV (Accredited in Business Valuation). Issued by the AICPA exclusively to CPAs. The leading credential for valuation work performed by CPAs. Required for any forensic accounting engagement involving business valuation.
CFF (Certified in Financial Forensics). Also AICPA-issued, focused on broader forensic accounting work.
CFE (Certified Fraud Examiner). Issued by the Association of Certified Fraud Examiners (ACFE). Focused on fraud investigation.
CVA (Certified Valuation Analyst). Issued by NACVA. Alternative valuation credential.
MAcc / MBA. Advanced accounting/business education. Useful but not specific to forensic work.
For a Florida divorce with a closely-held business, the ideal credentials would include CPA + ABV. For a fraud investigation, CPA + CFE or CPA + CFF. For broader forensic work, CPA + multiple specialty credentials.
Joey Friedman, CPA, ABV, MAcc, MIB holds the CPA license, the ABV credential from the AICPA, a Master of Science in Accounting (Florida Atlantic University), a Master in International Business (University of Florida), and is a member of ACFE (Association of Certified Fraud Examiners). The credential combination supports forensic accounting work across divorce, fraud, business valuation, and expert witness contexts.
What a Forensic Accounting Engagement Looks Like
A typical forensic accounting engagement involves:
Initial consultation. A confidential discussion of the matter. The forensic accountant identifies the question to be answered, the records likely needed, and the scope of the engagement. The accountant typically provides a scope letter and fee estimate.
Document collection. Through formal discovery (in litigation matters) or direct production (in non-litigation matters), the relevant financial records are obtained.
Analysis. The forensic accountant applies appropriate methodology to the records — bank deposit analysis, source-and-use schedules, normalization adjustments, valuation calculations, fraud examination procedures, or whatever the matter requires.
Documentation. The analysis is documented in workpapers that support the conclusions and can withstand opposing-side scrutiny.
Deliverable. The forensic accountant produces the deliverable the engagement requires — typically a written report, often supplemented by oral consultation with counsel or expert testimony.
Testimony (if required). In matters going to trial, the forensic accountant may provide deposition and trial testimony as an expert witness.
Florida-Specific Practice Considerations
Forensic accounting in Florida operates within several state-specific frameworks:
Florida CPA license. Forensic accountants practicing in Florida must hold a current Florida CPA license (or appropriate reciprocity).
Florida divorce statutes. §61.075 governs equitable distribution of marital property. Forensic accountants working divorce cases need to understand this framework, including the dissipation factor, the equitable distribution principle, and the valuation date considerations.
Florida case law. Florida appellate courts have developed substantial case law on forensic accounting issues, particularly in divorce: Beers, Roth, Heinrich (on dissipation), Vogt (on goodwill), and many others. A forensic CPA experienced with Florida matters knows this framework.
Florida court culture. Florida state courts and federal courts in Florida have specific expectations for expert witness disclosure, deposition, and testimony. Experience with the specific court framework matters.
What Forensic Accounting Costs
Costs vary widely:
| Engagement type | Typical range |
|—|—|
| Initial consultation | Often free; sometimes $500-$1,000 |
| Single-issue focused engagement | $5,000-$25,000 |
| Multi-issue complex engagement | $25,000-$100,000+ |
| Business valuation for divorce | $15,000-$50,000+ |
| Multi-year fraud investigation | $30,000-$150,000+ |
| Expert witness engagement (analysis + testimony) | $30,000-$200,000+ |
Most forensic accountants bill hourly (typically $300-$500/hour for principal-level work in 2026). Engaging early in a matter generally reduces total cost.
Frequently Asked Questions
What’s the difference between a forensic accountant and a regular CPA?
A regular CPA handles tax preparation, bookkeeping, audits, and general accounting work. A forensic accountant specializes in financial investigations, litigation support, fraud examination, and expert witness work. Many forensic accountants are also CPAs, but not all CPAs are forensic accountants.
How long has forensic accounting been a recognized specialty?
The work has existed for decades, but the formal credentials (CFE, ABV, CFF) and the recognition of “forensic accounting” as a distinct specialty have developed primarily since the late 1990s and 2000s. High-profile fraud cases (Enron, WorldCom, and many others) and the growth of expert witness practice have driven the specialty’s evolution.
Do I need a forensic accountant or can I just use my regular CPA?
For specific forensic questions (suspected fraud, divorce involving a business, litigation), a credentialed forensic CPA is the right choice. Your regular CPA may not have the specialty training or the credentials that hold up in court.
Can a forensic accountant testify as an expert witness?
Yes. Forensic accountants regularly testify in depositions and at trial as expert witnesses on financial issues. The work product is prepared with the expectation of opposing-side challenge.
How is a forensic accountant compensated?
Typically hourly, with rates varying by experience and specialty (often $300-$500/hour for principal-level forensic CPAs). Contingency fee arrangements are generally NOT allowed for expert witness work, as they compromise independence.
What if my matter is in another state?
Forensic accountants can work across state lines (subject to licensing rules in each state). For matters requiring Florida CPA licensure (e.g., signing a Florida tax return or auditing a Florida business), a Florida-licensed CPA is required. For most forensic accounting work involving Florida residents or businesses, a Florida-licensed CPA is preferred for the local knowledge.
Does Joey Friedman CPA PA handle these engagements?
Yes. Joey Friedman CPA PA, through its President Joey N. Friedman, CPA, ABV, MAcc, MIB, provides forensic accounting services throughout Florida and nationally, with experience including international matters (Canada, Iceland) where appropriate.
Working with a Forensic CPA
If you’re trying to determine whether a forensic CPA is the right resource for your matter, start with a confidential consultation. Describe the situation, the timeline, and the key questions. A credentialed forensic accountant can identify whether the matter fits, the scope of work likely required, and the cost range to expect.
Joey Friedman CPA PA, through its President Joey N. Friedman, CPA, ABV, MAcc, MIB, provides forensic accounting services to attorneys, businesses, and individuals throughout Florida and beyond. Contact the firm to discuss your specific situation.
About Joey Friedman CPA PA
Joey Friedman CPA PA is a Florida professional association providing forensic accounting, business valuation, expert witness, and litigation support services. The firm is led by Joey N. Friedman, CPA, ABV, MAcc, MIB, who serves as the firm’s President.
All services described in this article are provided by Joey Friedman CPA PA. Engagement letters and professional services are issued by the firm. Joey N. Friedman signs in his capacity as the firm’s President — as an officer and agent acting on behalf of Joey Friedman CPA PA, not in any personal or individual capacity. Mr. Friedman’s professional credentials — including CPA license, ABV (Accredited in Business Valuation, AICPA), and ACFE membership — are exercised under the firm.
To engage Joey Friedman CPA PA, contact the firm:
- Phone: 954-282-9615
- Contact form: Contact the Firm
Disclaimer: This article is for informational purposes only and does not constitute legal, accounting, or tax advice. Engagement of Joey Friedman CPA PA is subject to a written engagement letter executed between Joey Friedman CPA PA and the engaging party. No attorney-client or accountant-client relationship is created by reading this article.
Related coverage from Joey Friedman CPA PA
- Forensic CPA vs Regular CPA: When You Need Each
- Forensic Accounting vs Forensic Audit: What Attorneys Need to Know
- Divorce CPA: When You Need an Accountant Who Specializes in Divorce
- Fraud Investigator: When You Need a Forensic CPA vs Other Investigators
About This Service
This article is part of Joey Friedman CPA PA’s broader practice in forensic accounting service overview. Visit the main service page for a complete overview of how we support attorneys, businesses, and individuals across Florida and nationally in financial disputes, litigation, and forensic engagements.