6 ways forensic accountants fight financial threats
Forensic accountants are experts with a unique set of training and skills. “Forensic” means suitable for use in court, and forensic accounting is a speciality practice area of accounting that deals with engagements and investigations where disputes or litigation are anticipated.
For those reasons, the training and expertise demonstrated by these professionals make them very effective in investigating and combating fraud and other financial threats. That’s why CRI Group provides forensic accounting services to help clients safeguard their financial investments and utilise best practices when a case progresses to legal action – which is happening on a regular basis as more companies make rooting out fraud a top priority.
“Forensic accountants inhabit a cloak and dagger corner of the accounting world. Their job: respond at a moment’s notice when a client spots trouble – anything from procurement fraud to a top executive cooking the books to industrial espionage.”– Justin Pope, Associated Press
Here are some ways that forensic accountants lead the fight against fraud (Source: Forensic CPA Society, titled “What is a Forensic Accountant?”).
1. Forensic accountants are suspicious
They must be able to apply their accounting knowledge to legal issues. A forensic CPA will be asked to write expert reports, assist in depositions, testify as an expert witness, conduct fraud investigations and assist in civil and criminal investigations.
2. Forensic accountants are trained investigators
They are experts at determining whether criminal matters such as employee theft, securities fraud (including falsification of financial statements), identity theft, or insurance fraud have occurred. Investigation may also occur in civil matters.
3. Forensic accountants can testify in court
Forensic accountants often have to give expert evidence at the eventual trial. Forensic accountants not only utilise their accounting and auditing skills, but also use their investigative skills to determine what events actually took place in a financial setting. Knowledge of the courtroom sets the forensic accountant apart from a typical accountant.
4. Forensic accountants provide litigation support
Litigation represents the factual presentation of economic issues related to existing or pending litigation. In this capacity, the forensic accountant quantifies damages sustained by parties involved in legal disputes and can assist in resolving disputes before they reach the courtroom.
5. Forensic accountants can assist with business valuation
Forensic accountants often assist in professional negligence claims where they are assessing and commenting on the work of other professionals.
6. Forensic accountants can help recover assets
In the aftermath, forensic accountants may be involved in recovering proceeds of crime and in relation to confiscation proceedings concerning actual or assumed proceeds of crime or money laundering.
When financial pressure leads to fraud, you need a qualified forensic accountant – or better yet, a team of them – to unravel the numbers and the facts of the case. CRI Group’s highly qualified forensic accounting experts, which include our Certified Fraud Examiners (CFEs), can quickly find discrepancies in your finances and investigate the source of the problem.
The future of your business depends on safeguarding assets and investments from fraud. Contact CRI Group today and ask us how we can help your business by preventing and detecting fraud — thereby improving your bottom line.
Who is CRI Group?
Based in London, CRI Group works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk Management, Employee Background Screening,
In 2016, CRI Group launched Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management Systems, ISO 37301 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification. ABAC® operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. As a result, CRI Group’s global team of certified fraud examiners work as a discreet white-labelled supplier to some of the world’s largest organisations. Contact ABAC® for more on ISO Certification and training.
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