General Forensic Accounting is “the specialty practice area of accountancy that describes engagements that result from actual or anticipated disputes or litigation”.
A forensic accounting team includes experienced and registered Forensic Accountants, forensic auditors, computer forensic experts, and data analysts. They must be experienced in forensic auditing and forensic accountancy investigations. Typical industries include:
- Indigenous Organisations
- Private Businesses
- Private Individuals
- Semi Government Agencies
All work undertaken by a Forensic Accountant is to a standard that is suitable for use in a court of law if necessary. A forensic accountant must have the skills to analyse and carefully investigate a situation and, having prepared a report of findings, is then prepared to present those findings in court if requested. On a practical basis, a Forensic Accountant will often discover that the General Forensic Accounting report is not required to be presented in court, as often the parties settle out of court. However, this should not deter the forensic accountant from being prepared to present the report in court, if required.
- Forensic Accounting Investigations: These are requests to a forensic accountant to thoroughly analyse a situation which might be to settle a dispute. This is generally known as dispute resolution.
- Forensic Accounting Fraud Audit: Forensic Accountants or auditors investigate records to see if suspected fraud has occurred. Instances of fraud may occur as a result of external audits. However, when a particular request is made to investigate the forensic accountant and team is utilised.
- Forensic Accounting (Losses Through Negligence): This requires calculation of the loss that may have occurred in a negligence claim.
- Forensic Accounting (Computer Break Down Loss/Software Loss/Data Input Error): This is often an extensive area of investigation requiring computer forensic experts and data analysts.
- General Forensic Accounting: Forensic Accountancy can be required on many other instances where a particular matter must be investigated and a forensic report required for presentation to the parties or to the court.