Forensic Accounting Services might not be so popular in some countries for example in Asian countries. But it is the high pay services in some country like the USA.
In this post, I will list downs in detail about the most popular Forensic Accounting Services often engaged with.
As you may know, most of the engagements that they normally engage with are fraud investigation, partners or shareholders dispute, insurance claims, etc. Here is the detail of those 4 Forensic accounting services:
1) Criminal Investigation Service:
Here is number one. It sounds like FBI, Forensic Accountant also involves the criminal investigation.
Of cause, most people in some country normally though that auditor is the one who performs fraud investigation or criminal investigation, but actually they are not.
And the one who performs criminal investigation is a forensic accountant or sometimes called a forensic investigation.
You probably wonder what this job should be done by the police. And why now we said that it could be done by a Forensic Accountant.
The thing is some kind of job police might need more technical skill like in reviewing the documents, accounting records, accounting documents etc. That is why most of the forensic accounting job need CIA, CPA, or equivalence skill like ACCA or CA.
2) Dispute Resolution Service:
You might know that in some companies the shareholders have some dispute with each other. And the problems are bigger and bigger lead to hard dispute.
In this case, the engagement with forensic accounting may require to figure out some object involve with the dissolution which majorly requires accounting skill.
3) Insurance Claim Review Services:
So, forensic accounting’s services do play a very important rule to solve such a problem.
Forensic accounting does play a very important role related to the insurance claim. Ranking from the low claim, small accident like motor and personnel injure to large claims like fire and aviation.
Sometimes, insurance claim and settlement involve reviewing and checking the financial and accounting records, business performance review if it is involved with a business interruption.
Yes, most of the companies now buy insurance to over its business interruption and if CEO of those companies plays around with insurance companies, it will be the big loss a result of fraud.
4) Fraud investigation Service:
Fraud investigation is the popular jobs for a Forensic Accountant. This fraud could be started from staff level to management level and from small cash to high-value assets.
There are many other services but I would love to list the last one from my list is professionally negligent.
Professional negligence just simply means that the person who provides professional service negligently finds out the mistake or fails to do something that the normal professional should do.
As a result of this negligence, someone whose professional liable for, make a loss. To find out whether professionals have negligence or not, the company would normally engage with a Forensic Accountant.
The above is the popular 4 Forensic accounting services that normally see in the market. But, in most of the case, the service could be tailor base in the requirement.
Written by Sinra