About Forensic Accounting Firms

Forensic accountants are certified public accountants (CPAs) who have received further specialized training to be able to work with accounting cases involving possible fraud. Forensic accounting firms employ accountants that are frequently asked to financially investigate companies that are about to be purchased as well perform interviews with the company employees. Audits of companies are commonly performed by forensic accountants.

Dealing With Fraud

If a forensic accountant receives the necessary additional training, they will become eligible to receive the designation of certified fraud examiner (CFE). The training involved includes intensive study in examining financial statement in order to be able to detect fraudulent or otherwise illegal activity as well as to uncover misappropriated funds. CFE specialists are employed by an accounting firm when there is suspicion of illegal financial activity.

Legal Proceedings

Forensic accountants are often brought in to give court testimony in legal matters involving executive compensation disputes, corporate theft and falsified financial reports. Forensic accountants receive training specifically to know how to give expert testimony. They can offer their expertise in both civil and criminal lawsuits.

More Than Just Accounting

CPAs are trained in order to be able to balance and read company finances. However, forensic accountants are further trained to investigate transactions more deeply in order to identify possible red flags that may require deeper examination. They are often brought in by a higher governing body in order to investigate possibly questionable accounting practices and to set controls against theft and fraud.

Locating a Good Forensic Accounting Firm

Accounting firms that offer specialized services in forensic accounting will advertise themselves as such. The sub-specialty field is new, beginning to gain popularity in just 2001, but it is continuing to grow significantly. The best way to find a good forensic accountant is to ask for referrals from professionals in the accounting field. You may also consider using resources like the blog Embezzlement Lawyer to read reports and reviews on a variety of forensic accounting firms.