Jeff is a brand new worker with corporation Abc. He’s got gotten an excellent position and also he has even been offered a completely new buying card within his position. After a couple of weeks on-the-job, several coworkers start to notice a thing incredibly distinct about Jeff. Could it be his flashy new watch? Maybe the designer suits or his shiny, french manicured nails. No, it’s definitely the hot red sports car he’s got parked in the lot beside a 15 year employee’s beat up Pinto. The 15 year employee decides there’s definitely something wrong and brings it up to a senior manager who, after a few quick checks, notices some discrepancies in the credit card statements from the card issued to Tom. What to do? Forensic accountants can be utilized to sort through the information and create a case for financial fraud. Company XYZ can use the information from the forensic accountant to take Jeff to court. If Tom is found guilty, he could be required to pay back all the company money he used on his personal purchases.
Now, it just so happens that our friend Tom has had some previous experience with forensic accountants who determined, after his divorce, that he would be able to afford a certain amount of money each month as payment in support of his 3 kids. Now that Tom is in the hot seat at work, it looks like his ex is going to have one more reason to be upset with him.
The definition of ‘forensic’ means, according to dictionary.com, “pertaining to, linked with, or used in courts of law or public discussion and debate”. Forensic accountants gather information having a various resources including familiarity with economic theories, financial reporting systems, data management techniques and electronic discovery amongst others. They then take advantage of the information they accumulate to spell out complex issues in a fashion that is readily understood for use in the court system. A forensic accountant can be used as a coordinator of other experts including PI’s, forensic document examiners or consulting engineers. They could also help a victim in recovering assets through criminal prosecution or civil action.
In considering utilizing a forensic accountant there are certain things which might be worth noting. One is the experience and qualifications of the FA. Another is to confirm to have one at the earliest opportunity to ensure that you get the most benefit.