Most people are aware of the basic duties and responsibilities of public and private accountants. Conducting audits, managing payroll, and financial planning are all core aspects of accountancy, and the ones that the general public are most aware of. But some specialist accounting disciplines are a mystery to most people! Forensic accounting is one example of this. So what is forensic accounting?
What Is Forensic Accounting?
Forensic accounting is a specialised field of accounting that uses investigative skills to uncover financial fraud and provide evidence for criminal or civil proceedings. A forensic accountant will audit the financial documents and records of a company or individual to identify any potential areas of criminal activity.
How Does Forensic Accounting Work?
Accountants specialising in forensic work are trained to seek out and identify discrepancies, inconsistencies, erroneous data, or any other patterns which may indicate unlawful actions or processes. An accountant can analyse accounts receivable data, inventory records and bank statements searching for any irregularities which may be indicative of fraud, embezzlement, or other potentially criminal activities.
Forensic accountants also have an intimate knowledge of tax laws which may be relevant to legal proceedings, either for the prosecution’s case or the company’s defence. This means forensic accountants are a common sight in court cases on financial matters, and makes them very handy to have on staff!
How Can A Forensic Accountant Help Your Business?
Having an experienced forensic accountant on your team is essential for conducting a forensic audit, which may uncover hidden assets or patterns of financial discrepancies that require further examination. They are also an invaluable asset for court proceedings as they can provide vital evidence required to help prosecute or defend a case. In short, having an accountant skilled in forensic work is an important tool for uncovering financial fraud and providing reliable evidence for criminal or civil proceedings.
Alongside the above, a forensic accountant can help your company ensure legal compliance, reconstruct lost or damaged financial documents, and ensure the accuracy of any court findings by confirming that all reasonable steps have been taken when gathering evidence on complex financial matters.
If you’re curious about how professional accountancy services can help manage your company payroll and improve your company finances, get in touch! Our team of expert accountants in Manchester is on-hand to answer any enquiries you may have. Browse our website for more information, or contact us today.