What types of assignments does a Forensic Accountant perform?
The following is a brief list of sample assignments:
Business Interruption Insurance Claims
Insurance policies specify what the insurer will cover with a claim. These types of assignments involve a detailed review of the policy to investigate coverage issues and the appropriate method of calculating the loss as well as calculating the losses in accordance with the policy.
A Forensic Accountant is often asked to assist from either an insured or insurer's perspective in the settlement of a case.
Specific types of insurance claim examples include business interruptions, property losses and employee dishonesty or fidelity claims.
Business/Employee Fraud Investigations
Business investigations can involve funds tracing, asset identification and recovery, forensic intelligence gathering and due diligence reviews.
Employee fraud investigations often involve procedures to determine the existence, nature and extent of fraud and may concern the identification of a perpetrator. These investigations often entail interviews of personnel who had access to the funds and a detailed review of the evidence.
Shareholders' and Partnership Disputes
These types of projects often involve a detailed analysis of numerous years accounting records to quantify the issues in dispute. For example, a common issue that often arises is the compensation and benefits received by each of the disputing shareholders or partners.
Personal Injury Claims / Motor Vehicle Accidents
A Forensic Accountant is often asked to quantify the economic losses resulting from a motor vehicle accident or other type of personal injury claim.
Family Law Matters
Calculating the Marital Standard of Living is often needed by the courts in matrimonial disputes. Forensic Accountants are also retained to calculate the Cash Flow Available for Support. Other tasks may involve the tracing, locating and evaluation of assets.
Business Economic Losses
Examples of assignments involving business economic losses include; contract disputes, construction claims, product liability claims, trademark and patent infringements and losses stemming from a breach of a non-competition agreement. Lost profits or unjust enrichment calculations are performed in many of these claims.
Mediation and Arbitration
Forensic Accountants may also be involved with alternative dispute resolution (ADR). ADR services include both mediation and arbitration and are designed to help individuals and businesses resolve disputes with minimal disruption and in a timely fashion and without the expense of a lengthy trial.
Other FAQ's
- What is Forensic Accounting?
- What is Litigation Support?
- What is a Certified Fraud Examiner
- What does a Forensic Accountant do?
- What is Business Valuation
- What is Certified in Financial Forensics
