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Forensic Accounting Thank you for your interest in forensic accounting. This page is under construction and I appreciate your patience. For now, here are some basics: What is Forensic Accounting? Forensic and investigative accounting is the art and science of applying financial investigative techniques to matters of law. (fInancialforensics(R) Newsletter, September 1993.) "Forensic and investigative 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 workings of the legal system," (1987 G. Jack Bologna and Robert L. Lindquist). Using the same methodology employed by criminal investigators, forensic accountants hunt for evidence to solve financial crimes or help settle financial disputes. But that's just one aspect of forensic accounting. Some of the other popular services that forensic accountants perform include:
What is a Forensic Accountant? Concisely, forensic accountants are professional accountants that have knowledge, training and experience in forensic accounting. There are several forensic and forensic-related certification programs and accreditation programs offering various designations to professionals who successfully complete the programs and pass certification examinations. Some programs are more specialized such as business valuation certification programs, or fraud detection and prevention certifications. During 2001, a new certification program for forensic accountants became available through the American College of Forensic Examiners Institute entitled Certified Forensic Accountant, (Cr.FA). The course of study, and the exam, covers:
A Cr.FA candidate must be a CPA in good standing with his or her state society, and meet the membership qualifications of the Institute, which includes a character background investigation and demonstrating experience in performing forensic accounting engagements. I have been performing forensic accounting services since 1986. A forensic accountant does not take sides or argue over points of law; a forensic accountant presents the financial facts of the case in a clear, concise and unbiased manner.
Why are Forensic Accountants so important to businesses? There are basically three major categories of financial fraud:
Let's take a look at some stunning findings and statistics about fraud, beginning with employee dishonesty:
Based on the findings of the 2008 Report to the Nation on Occupational Fraud and Abuse, Issued by the Association of Certified Fraud Examiners, a projected $994 billion were lost to fraud in 2008, and the median loss suffered by businesses with less than 100 employees was $200,000. Forensic and investigative accountants are trained to help deter fraud by working with business owners and management, to implement internal accounting controls and other anti-fraud programs. If fraud is suspected, forensic and investigative accountants are needed immediately in order to protect the victim organization from further fraud, by performing the various fraud detection techniques available and preserving evidence needed to convict the perpetrator.
Seminars and Speaking Engagements Seminars about fraud and fraud prevention I have developed a four-hour continuing professional education program entitled Implementing Forensic Accounting Techniques in Audit Engagements. I offer this as an in-house CPE program. If you are interested in this valuable program, please contact me for an overview and course outline, and rates. Speaking Engagements I am available as a speaker for your next luncheon or dinner event. I have a half-hour and a one-hour presentation on forensic accounting. I talk briefly about what forensic accounting is and what it involves. Throughout this discussion, I describe real life scenarios from my own experiences as a forensic accountant that are often entertaining and always informative. I also am available to speak about current income tax related matters. Robert B. Lechter CPA, Cr.FA |
