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The word "forensic" commonly conjures a mental image of television shows like "Bones" or "CSI". We tend to think the word "forensic" only refers to dead bodies and the gathering of evidence that follows.

In reality, the word "forensic" can also be attached to what is commonly viewed as one of the world's most staid professions: accounting. The thing is, with fraud and other white-collar crimes becoming more prevalent these days, it becomes more and more important that accountants be brought in to find the paper trail and other evidence that can be used in the event of a trial.

Essentially, any accountant can be a forensic accountant. In its most basic form, forensic accounting is simply accounting that uncovers evidence that can be used in court for litigation.This simply means that after the completion of their investigation, the accountant may be required to testify in court as an expert witness.

But don't let this give you the assumption that forensic accounting is easy. Far from it. In fact, even though it's true that every accountant can simply take up this branch of accounting, there are some additional skills that they should learn and master first. One of these skills, for example, is a familiarity with software and specific computer programs. Since most companies now store their data within their network of computers, an accountant conducting a forensic investigation will have no choice but to wade through encryptions and find a way to access hidden or even deleted data.

The job of a forensic accountant is painstaking work. In forensic accounting, the investigator will have to comb through every detail and every receipt, looking for evidence of fraud. It's not just working on computers; it requires a thorough investigation of notes, receipts, ledgers, records, e-mails, etc. Nothing is trivial. Everything and anything will have to be reviewed.

But forensic accounting is not only a post-mortem process. Some companies who already suspect fraud or similar criminal behaviour often hire accountants to investigate. This means that forensic accounting can also be preventative, looking for anomalies and bringing them out to light before they worsen enough to eat the company's finances from inside out.

It's also notable that forensics are sometimes even necessary for retrieving laundered money or other criminal proceeds. This is especially helpful when the funds are stashed overseas, and the paper trail to prove the connection between the funds and the crime is obscured. Forensic accountants definitely play an important role in fund recovery.

But in case you assume that only large corporations and governments require the assistance of forensic accountants, think again. In high-profile divorces between power couples (such as in Hollywood, or even the Paul McCartney-Heather Mills debacle), the common issue that emerges is the division of conjugal property. Forensic accounting can ensure that both spouses are reliable and truthful in their declaration of assets.

These days, accountants in the field of forensics are required to obtain their licence. If you're in need of one, make sure you find someone with ample experience, a proper licence, and the gumption of a private eye. Not only the world's most prosperous find themselves in need of these investigative number crunchers; with the economy still in a very weak state, a lot of people are tempted to venture into fraud and other illegal sources of income. Protect your company, protect your family, and protect yourself.

Forensic Accounting

By John Platten
Article Source: http://EzineArticles.com/6462464