Understanding “foreign-sic,” or knowing someone who can, may have a major impact on your financial experience.
Studying a foreign language is something most of us experienced at some point in our educational careers. After a year or more of classes, you may remember feeling as if you had only learned a few sentences. Similarly, the language of accounting can seem very foreign. This blog addresses one of the most obscure, yet fastest growing accounting dialects forensic accounting.
Translation of Forensic Accounting
Consider your favorite episode of CSI, but instead of blood and fingerprints, think numbers and paper trails. There are a lot of accountants involved in criminal investigation. In fact, they make up a significant portion of positions at both the FBI and CIA.
Forensic accounting uses auditing, investigative, and other professional skills to analyze financial information and extract pertinent data. It is commonly used in matters involving potential or actual civil or criminal litigation. However, the possibilities are almost endless.
The following are a few examples of specific techniques/models that are used:
- Benford’s Law (also called the first-digit law – an observation about the frequency distribution of leading digits in many real-life sets of numerical data)
- Regression Analysis (statistical process for estimating the relationships among variables)
- Financial Statement Analysis & Building
Most people have heard of the term audit and may have an idea of what it involves. Auditing and forensic accounting have similarities, but the latter involves digging much deeper into a specific area and often requires specialized knowledge. The main areas of forensic accounting include (but are not limited to):
- Fraud Prevention, Detection, and Response
- Litigation (Domestic/Corporate)
- Bankruptcy, Insolvency, and Reorganization
- Economic Damages Calculations and Due Diligence
- Electronic Data Analysis
Specific training, earned professional designations, expertise and experience are all of high value in this field. Fortunately, Price CPAs’ team of professionals has all of them. The most important designations to have in forensic services, along with CPA, ABV and CVA, include:
- CFF – Certified in Financial Forensics; and,
- CFE – Certified Fraud Examiner
We can help
Situations requiring forensic services are often unanticipated, time-sensitive, intense, and emotional. You need experienced, objective professional support at those times. Price CPAs is a trusted provider of those services and is ready to assist you personally or your company. Contact us through our website (www.pricecpas.com) or at 615.385.0686.