What is Forensic Accounting?

Forensic accountants are often called in to testify in the following cases:

  • Divorce
  • Bankruptcy
  • Reorganization
  • Insolvency

Forensic accounting is additionally used in fraud cases, divorce cases, shareholder/partner disputes and contractual disputes, insurance claims, credit card fraud, embezzlement, securities fraud and risk consulting.

Professional forensic accounting is a diverse new tool to meet a growing need for everything from re-establishing financials after a natural disaster such as a hurricane or tornado to divorce and business partner disputes. Forensic accounting offers an accounting analysis that is acceptable in the courtroom. It can form the basis for discussion, debate, and dispute resolution. Forensic accountants are involved in litigation support, as well as investigative accounting. A forensic investigation may be grounded in disciplines like accounting, medicine, and engineering.

A forensic accountant may help with disaster relief by determining the circumstances of business interruption loss. For example, forensic accounting is currently being used by our firm to determine BP claims and whether the companies can show causation. Forensic accountants combine forensic investigation, forensic auditing and forensic accounting to deliver a specialized approach to the subject at hand. They collect and analyze financials for the purpose of shedding light on discrepancies in a courtroom or boardroom.

For information on how Forensic Accounting would
benefit your company please Contact Makara and Associates.

This information is based on facts, assumptions and representations as stated and authorities that are subject to change.  We will not update this information for subsequent legislative or administrative changes of future judicial interpretations.

LEGAL NOTICE AND DISCLAIMER:  The information within this web site is for informational and educational purposes only and is not tax advice and should not be used as such.  The facts of each individual situation can have significantly different outcomes when applying tax law.  The hiring of a CPA is an important decision not to be based solely on advertisements.