DFW, TX CPA / Samuel H Moore, CPA, CFE

What is Forensic Accounting?

The integration of accounting, auditing and investigative skills yields the speciality known as Forensic Accounting.

According to the Webster's Dictionary, the term "Forensic" means

"Belonging to, used in or suitable to courts of judicature or to public discussion and debate."

Therefore, "Forensic Accounting", provides an accounting analysis that is suitable to the court which will form the basis for discussion, debate and ultimately dispute resolution. Forensic Accountants are trained to look beyond the numbers and deal with the business reality of the situation.

As forensic accountants, we utilize accounting, auditing and investigative skills when conducting an investigation. Equally critical is our ability to respond immediately and to communicate financial information clearly and concisely in a courtroom setting.

Forensic Accounting services are part of two basic service areas:

Investigative Accounting; and
Litigation Support

What is Investigative Accounting?

Investigative Accounting, also known as Fraud Examination, is often associated with investigations of criminal matters. A typical investigative accounting assignment would be an investigation of employee theft. Other examples include securities fraud, insurance fraud, kickbacks and proceeds of crime investigations.

What is Litigation Support?

Litigation Support provides assistance of an accounting nature in a matter involving existing or pending litigation. It deals primarily with issues related to the quanification of economic damages. A typical litigation support assignment would be calculating the economic loss resulting from a breach of contract.

How can a Forensic Accountant be of assistance?

Investigative Accounting

Review of the factual situation and providing suggestions regarding a course of action.
Assistance with the protection and recovery of assets.
Co-ordination of other experts
Assistance with the recovery of assets by way of civil action or criminal prosecution.

Litigation Support

Assistance in obtaining documentaion necessary to support or refute a claim.
Review of the relevant documentation to form an initial assessment of the case and identify areas of loss.
Assistance with the production and examination of Discovery documents including the formulation of questions to be asked at deposition or trial regarding the financial evidence.
Review of the opposing expert's reports and conclusions and reporting on both the strengths and weaknesses of the positions taken.
Assistance with settlement discussions and negotiations.
Assistance with questions for cross-examination of opposting experts.
If qualified as an expert by the Court, presenting testimony at any trial or hearing.