Forensic accounting is a term that you might have stumbled across before, but didn’t fully understand. This brief guide sets out the main aspects of forensic accounting in layman’s terms.
The Oxford English Dictionary defines forensic accounting as: ”the use of accounting skills to investigate fraud or embezzlement and to analyze financial information for use in legal proceeding”.
Rather like the word ‘forensic’ suggests, forensic accounting is theprocess of using financial data and accountancy skills to garner evidence of or onpotential financial wrong doings.
If you are in need, or feel that you are in need, of a forensic accountant, it is important that you choose someone that you trust and that is fully certified and accredited. The work that they will do could have a major bearing on your future, particularly if there may have been an instance of fraud within your business.
Much like a detective, a forensic accountant will compile and collate financial evidence. They will also analyse their findings and, rather than just looking at the numbers on the page, they will also look at the bigger picture and are trained to seek out the reality of a business situation.
Forensic accountant Kent, and elsewhere, too, often have a large amount of litigation experience and legal knowledge as the work that they do is frequently required in court as evidence. They may also be called upon to testify and supply visual aids in court as evidence.
If you think you may need a forensic accountant, be sure that you choose someone with a proven track record.