A forensic accountant specializes in using accounting to conduct criminal investigations. Typical duties of a forensic accountant include:
- Analyzing financial records to develop a “financial profile” of an individual organization suspected of illegal activity
- Gathering evidence and preparing affidavits based on financial analysis
- Interviewing witnesses during financial investigations
- Identifying funding sources and related transactions
- Compiling financial investigative reports
- Discussing strategies with attorneys and testifying as expert witnesses in court
Many forensic accounting experts work directly for local and federal law enforcement agencies; others work on a contract basis with these agencies or with private investigators. Depending on who is conducting the investigation, you may work directly with a forensic accountant or with a law enforcement officer or agent. In either case, the process will be similar.
- Gathering Documentation
The first step in any financial investigation is to gather all documents that concern the case. You may be asked to assist with this process or law enforcement may impound your records.
- Preliminary Investigation
Once the necessary documents are assembled, one or more forensic accountants will conduct a preliminary investigation to get a big picture overview of the situation.
- Interview Subjects and Witnesses
The preliminary investigation is focused on the large scale. Now, investigators must fill in the details. Subject and witnesses may be brought in for questioning. Their statements will be analyzed for discrepancies. Depending on what is uncovered, investigators may conduct additional interviews.
- In-Depth Investigation and Report
With the additional details gathered, forensic accountants will conduct a more in-depth investigation. This phase of investigation is intended to compile all available information and determine what is relevant to the case. A forensic accounting expert will compile all of the relevant information into a report.
- Prepare for the Court Case
If the investigation uncovers criminal activity, there may be a court case. In this eventuality, both the prosecution and the defense may hire forensic accountants. The accountants will help the attorneys plan strategies and questions. They may also be called on to testify in court as expert witnesses.
The job of a forensic accountant may not be as glamorous or exciting as the job of an agent or forensic investigator who works in the field, but this work is just as crucial. Most investigators simply do not have the expertise to conduct financial investigation.
Whether you are the subject of investigation or a victim of financial fraud, a certified forensic accountant is a professional that you need on your side.
Additional Related Blog Articles Worth Reading:
- Common Fraud Problems and Strategies to Avoid Them
- Questions To Ask When Hiring An Investigative Accounting Firm
- What You Need To Know About Fraud Investigation Process And Procedures
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Veriti Consulting LLC a certified fraud investigative firm that provides various fraud and forensic accounting services for individuals and businesses across the United States. Veriti is also a licensed private investigation agency. If you would like to learn more about the types of investigative accounting services we offer call 855.232.4410.