Forensic accounting is a specialty practice area of accounting that investigates whether firms engage in financial reporting misconduct or financial misconduct within the workplace by employees. Forensic accountants combine knowledge of the law with their accounting skills to assess companies and help them resolve issues such as corruption, fraud, and embezzlement. They are often used as expert witnesses to assist the judge or jury in forming the verdict. Forensic accounting is a combination of accounting and investigative techniques used to discover financial crimes. Forensic accountants analyze financial records and accounts that may be used as legal evidence and often testify in court cases as expert witnesses. They may work on cases such as fraud and embezzlement and explain the nature of a financial crime in court.

Forensic accountants utilize an understanding of economic theories, business information, and accounting practices to investigate financial issues in litigation or criminal cases. They specialize in unraveling financial systems and practices related to criminal and legal investigations. Forensic accounting involves meticulous record-keeping and often testimony in court. Forensic accountants adjust their methods and goals for each case and may use both paper- and computer-based investigation techniques. Some of the responsibilities of forensic accountants include collecting data as they research funds, assets, and similar financial information, offering testimony in court, and inspiring confidence and trust by adhering to the highest standards of professional ethics.

Forensic accounting is utilized in litigation when quantification of damages is needed. Parties involved in legal disputes use the findings of a forensic accountant to resolve disputes via settlements or court. Forensic accountants are often called upon to assist in legal disputes and litigation, providing expert testimony, calculating damages, and conducting financial analyses. Their specialized knowledge helps attorneys build strong cases and navigate complex financial disputes. Forensic accountants are frequently employed by public accounting firms, providing fraud investigation, litigation support, and regulatory compliance services to clients across various industries.

To become a forensic accountant, one needs a bachelor’s degree in accounting, finance, or a related business specialty, and/or a master’s in accounting. Forensic accountants analyze, interpret, and summarize complex financial data, compile financial evidence, develop computer applications to manage the information collected, and communicate their findings in the form ...