SYNOPSIS

Introduction – Definitions
What does a forensic Accountant do?
Litigation Support
Investigative Accounting Family Law
Why should a forensic Accountant be retained.
Who needs the service of a forensic Accountant.
What skills and character should a forensic Accountant posess
Setting up the forensic Accounting unit
Essential Job functions

INTRODUCTION - Definitions

Forensic Accounting is the specialty area of accounting that describes engagements which results from real or anticipated litigation. Such engagements can be classified thus:-
- Economic damages or crimes
- Family Law
- Fraud
- Business Valuation

Forensic – defined as – “Belonging to, used in or suitable to courts of judicature or to public discussion and debate”
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 Accounting comprises primarily of Litigation Support and Investigative Accounting.
Forensic Investigation – The utilization of specialized investigative skills in carrying out an inquiry conducted in such a manner suitable to the court.
Forensic Audit – An examination of evidence regarding an assertion to determine its correspondence to established criteria carried out in a manner suitable to the court.
Litigation Support – Provides assistance of an accounting nature in a matter involving existing or pending litigation.
Eg. – Quantification of economic damages.
– Calculating economic loss resulting from a breach of contract.

Forensic Accounting is the application of financial skills and an investigative mentality to unresolved issues, conducted within the context of the rules of evidence. As a discipline, it encompasses financial expertise, fraud knowledge and a strong knowledge and understanding of business reality and the working of the legal system. Its development has been primarily achieved through on the job training, as well as experience with investigating officers and legal counseln.

Investigative Accounting – refers to the investigation of criminal matters like employee theft, securities fraud, insurance fraud, embezzlement and proceeds of crime investigations