Forensic accounting is another branch of accounting which collaborates various techniques of accounting and auditing and investigatory experiences. Using the tact of forensic accounting , forensic accountants provide services to their clients in the areas of civil lawsuits. Forensic accountants have an indispensable role in resolving the legal disputes of their clients. Qualified forensic accountants have the ability to modify the complex presentation of evidence to simpler ones before presenting them to the jury in court proceedings.
Thus, when dealing with litigation, the crucial role of a forensic accountant cannot be neglected.
- Forensic accountants help in assessing the position of the organization in terms of economic losses and damages, post-dispute costs and detection of frauds.
- As a consultant, forensic accountants provide their clients with the advice needed while dealing with a legal environment. They guide their clients in making strategies related to the case and advising them, how to present the case in trial after core SW analysis of the case.
- Forensic accountants can be asked to attend the trial and act as an expert witness to defend the client against the opposing litigation. They further understand the financial issues and form additional questions that can be asked during the legal proceeding.
- In cases concerning valuation of property, a forensic accountant can be called upon to calculate the damages purposely caused to the property and intellectual rights of the business due to fraud. For this purpose, they make full use of financial information relating to the property.
- A forensic accountant, by making efficient use of resources made available to him, can obtain documentation that is mandatory to settle a claim. The documents are also valuable to form an assessment to calculate and identify losses.
- When it concerns commercial litigation, a forensic accountant communicates with the litigation team. The discussions relate to the case and calculations are entirely based on the assumptions and difference in opinions. These variations are regarding what the situation could be if the other party behaved differently.
- During the cases of frauds, the accountant is required to interpret and investigate the causes of frauds having understood all the legal compliances associated with fraud detection and prevention.
- Forensic accountants suggest various techniques of presenting financial information in the case by eliminating the pre-existing flaws and errors.
- Dispute settlement with opposition to negotiations and discussions is another role portrayed by forensic accountants.
- The support provided by forensic accountants may differ in respect of determining the extent of damages or assisting in research work.
- They provide aid in initial stages of proceeding by reviewing the documents and makings assessments thereof.
- Forensic accountants, when hired in the very beginning, help in reducing the costs and maximizing the overall benefits by discovering, depicting, and discussing the areas of disputes.
A forensic accountant should be hired externally to take the advantage of his professional services pertaining to the calculation of damages and losses and valuation of intellectual rights of a business.