Forensic Accounting has been playing an important role ever since the Enron era. Accountants and financial specialists, lawyers, legislators, executives and writers have been regularly consulted about this matter. What are the main issues arising in seminars and discussions about the theme?
Two important items considering potential users are:
- Where is forensic accounting being applied?
- Who can perform assignments in forensic accounting services?
Starting with the first question, forensic accounting is characterized by using the techniques of accounting, auditing, and other professional skills, in investigations involving legal issues. By legal issues we have two streams: criminal, including frauds; and civil, including commercial disputes, business losses, collections, and asset recovery.
In both areas; criminal and civil, we observe that there is currently huge growth in forensics services for public accounting firms, law firms, and IT companies. The risk factors (higher in 2002 and 2008) are still playing an important role on entities in daily life – especially because of the introduction of new legislation, the significant changes in internal controls and the intense use of electronic transactions.
Considering that white-collar crimes and financial disputes are growing, the use of specialized forensic professionals is a necessity to entities interested in better internal controls, fraud prevention policies, and legal issues solutions.
Forensic accounting is a profitable niche and growing within public accounting firms and law firms. The cost to deal with fraud and legal disputes is very high and it is not uncommon to see companies spending millions of dollars defending or prosecuting each other. Certified accountants and lawyers are members of this cost-effective service, but they are not the only ones hired to perform the assignments.
Public accounting firms and law firms engage multi-task consultants to give advice, supplying the know-how on important aspects of the case. These seasoned professionals bring the business approach in cases where losses need to be considered and when political risks need to be evaluated – and more than this, they can improve agreements because they know the ambience, and how to deal with it.
Contract disputes can be solved with less cost if the parts can count on able negotiators and mediators. Those professionals bring to the case a competitive advantage because they have years of experience dealing with contracts, but also because they have the technical tools to perform the assignments.
Boardroom Metrics provides professional assistance to work in the following commercial dispute areas:
- Loss of profits
- Patents, copyrights
- Financial Condition Analysis
- Financial Motive
- Inventory Irregularities
- Third Party Liability Losses
- Contract Disputes
- Fraud
- Business Valuations
- Audits of Projects During Reconstruction
- Political Risk
