Understanding Forensic Accounting: The Basics

Forensic accounting is a valuable tool for uncovering financial wrongdoing and can be used in a variety of legal proceedings. It is important to find a qualified and experienced professional to conduct these services. This article will discuss the basics of forensic accounting and what you need to look for when hiring a forensic accountant. ​

What Is Forensic Accounting?

Forensic accounting is the application of accounting principles and techniques to investigate and analyze financial information for use in legal proceedings. It involves the examination of financial records and documents to determine if there has been any fraudulent activity or mismanagement. Forensic accountants often work closely with law enforcement agencies, lawyers, and other legal professionals to gather and analyze evidence in criminal and civil cases. ​

When Is Forensic Accounting Needed?

In general, forensic accounting is needed whenever there is a need to examine and analyze financial information in a legal context. This can apply to any lawsuit that is suing for financial compensation. Forensic accounting can be used in a wide range of situations, including divorce proceedings, partner or shareholder disputes, and financial fraud investigations. 

Who Should You Hire for Forensic Accounting?

Forensic accounting requires a thorough understanding of accounting principles and financial statements, as well as the ability to think critically and analyze complex data. Forensic accountants may be called upon to testify in court as expert witnesses. If you are in need of forensic accounting services, you will want to find a qualified accountant who is experienced in making court appearances.

It is best to work with an accountant who has attained the Certified in Financial Forensics (CFF) credential through the American Institute of Certified Public Accountants. The CFF credential is granted exclusively to CPAs who have demonstrated expertise in forensic accounting, and very few CPAs ever receive this specialty designation. Those who are certified in financial forensics have credibility and are recognized as experts in their field. Their testimony is often given weight in legal proceedings, and their findings are considered reliable and trustworthy.
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Larry Bradford, CPA, is certified in financial forensics and has been awarded the CFF credential. He has over 40 years of experience in investigative accounting and has made over 400 court appearances. If you are looking to hire a certified and experienced CPA for your forensic accounting needs, contact Larry Bradford today. Call 512-402-0049 or send an email to [email protected] to set up an appointment.