Posted on: 12 April 2017
Accounting is a highly complex field that is essential for many aspects of modern financial management. However, some individuals may lack an awareness of the fact that these professionals often specialize in particular fields. Forensic accounting is a rapidly growing area of expertise, and there are a few ways that these professionals may be able to help you.
Help With Defending Against A Lawsuit
If you find yourself in a lawsuit, it can be possible to be accused of being liable for sizable financial damages. Unfortunately, the person that is pursuing the lawsuit against you may have the incentive to exaggerate the damages that they have suffered in an attempt to increase the compensation that they are awarded. By retaining a forensic accountant, it will be possible to verify the claimed damages so that you can better determine whether the damages being claimed against you are legitimate.
Protection From An Unethical Spouse In A Divorce
The process of divorce is supposed to give you a chance for a fresh start following a bad relationship. Over the course of this process, the assets that were accumulated over the life of the marriage will need to be divided. Sadly, this may lead to a spouse taking steps to hide assets so that they will not have to split them in the divorce. To determine whether this has occurred, a forensic accountant must research the full financial history of the marriage. When discrepancies are found, they will be reported to you and your attorney so that you can decide on the best course of action for handling the missing assets.
Prove Corporate Fraud
The members of management within a large company may have sizable latitude when it comes to procuring resources to perform their jobs. Unfortunately, there are some employees that may abuse these privileges to enrich themselves. To hide these abuses, individuals may go to great lengths to mask the nature of their transactions. However, a forensic accountant will be able to review their activity to look for patterns and other clues that could indicate how they were stealing from the company.
While you may think that this will no longer be a problem once you are rid of the employee, it can be possible for others to attempt similar actions in the future. After the forensic accountant has prepared their final report on the issue, you should thoroughly review this report to look for policy changes you should make to reduce the ability of others to abuse the system in the same way.Share