Forensic Accounting

Forensic accounting or financial forensics is the specialty practice area of accountancy that describes engagements that result from actual or anticipated disputes or litigation. “Forensic” means “suitable for use in a court of law”, and it is to that standard and potential outcome that forensic accountants generally have to work. Forensic accountants, also referred to as forensic auditors or investigative auditors, often have to give expert evidence at the eventual trial.

All of the larger accounting firms, as well as many medium-sized and boutique firms, have specialist forensic accounting departments. Within these groups, there may be further sub-specialisations: some forensic accountants may, for example, just specialise in insurance claims, personal injury claims, fraud, construction or royalty audits.

Financial forensic engagements may fall into several categories, for example:

• Economic damages calculations, whether suffered through tort or breach of contract
• Post-acquisition disputes such as earnouts or breaches of warranties
• Bankruptcy, insolvency, and reorganization
• Securities fraud
• Business valuation
• Computer forensics/e-discovery

Sourced from http://www.forensicacctg.com.au/forensicacctg/