Forensic accountants are specially trained to use conventional accounting and auditing practices in combination with investigative methods to provide financial analyses admissible in a court of law. Financial crimes that span across industries require the services of forensic accounting firms, including employee theft, insurance fraud, securities fraud, tax fraud and manipulation of inventory records, financial data and other crucial company information.

Forensic accountants are not only capable of detecting illegal activity, but can also determine the absence of deception. This is good news for business owners who find themselves under investigation for a financial crime. Those with a degree in forensic accounting are trained to objectively assess financial data that can stand up to the highest level of judicial scrutiny.

Find a forensic accounting firm that can do the following for your business:

1. Detect the source of internal fraud to minimize further financial loss and bring the perpetrators to justice.

2. Develop systems and processes designed to prevent the recurrence of internal financial fraud.

3. Provide highly qualified and experienced forensic accountants to conduct investigations and make appropriate process and practice recommendations.

Action Steps
The best contacts and resources to help you get it done

Take a bite out of white collar crime with the help of a forensic accountant

Business owners fail to recognize a staggering 75 to 80 percent of internal theft. Many factors contribute to this statistic, including technological advancements, high employee turnover rates and inefficient and ineffective business accounting practices. A forensic accountant can help you catch employees with their hands in the cookie jar and advise you on how to better protect your business assets.

I recommend: RosenfarbWinters, LLC is a forensic accounting firm that can investigate and solve your business' internal theft problem, whether you suspect theft of goods, bribery, computer-based fraud or embezzlement of funds. The firms accountants focus not only on locating the source of internal fraud, but pride themselves in their ability to help their clients recover their losses. Matson, Driscoll and Damico (MD&D) is a forensic and investigative accounting firm that specializes in determining the extent of damages caused by internal financial crime and fraud and what business processes facilitated the crime. Their forensic accounts analyze everything from earning and income statements to balance sheets and employee records to get to the bottom of your case.

Avoid a scandal by hiring a forensic accounting firm to improve your internal controls

In the wake of Enron and other corporate fraud scandals, the spotlight is on business owners' financial practices. Government regulations like The Sarbanes-Oxley Act of 2002, as well as heightened public expectations for corporate transparency, have caused many business owners to examine their internal control systems to prevent fraud. Forensic accountants analyze existing business practices and processes and make recommendations for improvement, helping their clients minimize fraudulent activity.

I recommend: Eide Bailly offers fraud detection, investigation and prevention services. Their forensic accountants assess client's corporate practices, with an emphasis on internal controls and management culture, in order to develop and implement an effective fraud prevention program. The firm also offers corporate training, through its Fraudwise Academy, to help business owners better detect internal fraud. Global Atlantic Partners LLC helps business' avoid fraud through identifying high-risk company practices and offering concrete, realistic solutions. They can also help you better understand the psychological and business culture factors that often contribute to corporate fraud.

Hire a professional with forensic accounting training to cover your assets

Your company's future may depend on the quality of your forensic accountant's investigation and business recommendations. For best results, limit your search to accountants with a forensic accounting degree, preferably a masters in forensic accounting or certification in forensic accounting. As the demand for forensic accounting grows, there is a corresponding increase in the number of high quality forensic accounting schools.

I recommend: Forensic accountants at Ellin and Tucker, Chartered hold a variety of certifications, including certification in fraud examination and forensic financial analysis. Their specially trained employees work in concert to provide individual clients with the necessary combination of skills. McGovern and Green's forensic accountants have extensive fraud examination experience. Their highly qualified accountants include forensic CPAs who specialize in computer fraud and internal auditing.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Because there are no regulations in place to monitor unqualified individuals who establish forensic accounting firms, you must request and follow up on references prior to hiring.
• •  Depending on your industry, find a forensic accounting firm that supplements accounting services with that offered by certified fraud examiners with specialized business experience. Some firms, for example, employ certified fraud examiners with experience in government agencies, such as the CIA or IRS, while others recognize the value of seasoned RNs in the detection of medical industry or personal injury fraud.
• •  Although a degree from any forensic accounting school may look impressive on paper, make sure your forensic accountant graduated from an accredited institution.

Accountants can advance their careers and boost their earning potential by training for forensic accounting. Forensic accountants objectively examine figures to detect white-collar crime. Many companies are choosing to hire a forensic accounting firm to keep an eye on their bottom line in an effort to prevent internal theft and fraud.

Forensic accountants must be able present their work in a court of law. While not every investigation will lead to a trial, forensic accountants must be meticulous about documenting their work. The proper forensic accounting training prepares accountants for the scrutiny of the justice system. To find training for forensic accounting, consider the following:

1. Earn a degree or certificate in forensic accounting.

2. Continue your forensic accounting training with the appropriate courses.

3. Attend seminars and workshop featuring leading professionals in the forensic accounting field.

Action Steps
The best contacts and resources to help you get it done

Earn an undergraduate forensic accounting degree

Undergraduate students who have an interest in forensic accounting can earn a forensic accounting bachelor of science degree. This undergraduate degree will prepare students for entry-level positions in forensic accounting firms and may fulfill prerequisite courses for students who wish to pursue a masters in forensic accounting or obtain a graduate certificate. Financial managers and auditors may wish to complete the undergraduate program to increase their earning potential.

I recommend: Earn an undergraduate's degree in forensic accounting at Carlow University in Pittsburgh. Carlow University is a Catholic, women-centered liberal arts university, but men are welcomed to attend. Combine a bachelor of science in forensic accounting while simultaneously completing a master of business administration at Franklin University. The university's community college alliance allows students to complete their degrees in their own communities.

Find forensic accounting schools that offer graduate certificates

Certified public accountants and other professionals with accounting backgrounds can choose to earn a graduate certificate in forensic accounting. Earning a certificate typically requires completing 12 credit hours with a minimum grade point average. Students who are completing their MBA can a graduate certificate in forensic accounting.

I recommend: The University of Baltimore offers a graduate certificate for forensics accounting designed for accountants, attorneys, chief financial officers, certified fraud examiners as well as managers and directors with fiduciary responsibilities. Northeastern University College of Professional Studies offers a four-course graduate certificate in forensic accounting. For accounting graduates, MBA and MSM students who want to learn more about forensic accounting, St. Thomas University offers a graduate certificate in forensic accounting.

Enroll in continuing education forensic accounting courses

Forensic accountants must continue their education in order to stay current in the field. Many employers choose to pay for their forensic accountants' continuing education. Continuing education courses in forensic accounting are often appropriate for professional in the financial field.

I recommend: Attend continuing education courses in forensic accounting at The University of North Carolina at Charlotte. The courses are ideal for forensic accountants who want to expand their knowledge, accountants and accounting managers who want to earn a graduate certificate in forensic accounting and non-accounting professionals who want to gain a basic knowledge of forensic accounting. Find continuing education courses in forensic accounting at New York University School of Professional & Continuing Studies. For online continuing education courses, visit the American College of Forensic Examiners.

Gain valuable forensic accounting training by attending a seminar

Forensic accounting seminars often are attended by financial professionals from various firms across the nation. It's also possible to schedule a private seminar for your employees. These seminars typically focus on one specific aspect of financial accounting and spend several days discussing it.

I recommend: Contact the American Management Association to schedule an on-site seminar at your workplace. The workshop is ideal for chief financial officers, financial managers, vice presidents of finance, accountants and auditors. Attend a national seminar offered by Forensic Accounting Services.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  A forensic accountant must testify in court, so taking a public speaking class is advisable.

Forensic accountants are highly specialized in the areas of finance and law to objectively review financial information when a financial crime is suspected. Forensic accountants combine knowledge of standard accounting and audit principles with investigative methods to conduct financial analysis that is admissible in a court of law. They can investigate anything from employee theft to securities fraud. As you explore this topic, you will find some terms that need clarification.

Action Steps
The best contacts and resources to help you get it done

Money laundering

Money laundering is the practice of acquiring funds illegally and then disguising the identity, source or destination of the money. It can also involve activities such as tax evasion or false accounting to conceal how the money was acquired or where it was sent. Forensic accounting firms can help with determining whether or not money laundering has occurred in a business.

I recommend: Farlex has a comprehensive discussion.

Fraud detection

A fraud is a crime or offense that comes about because of someone deliberately deceiving someone else in order to damage them or to acquire services or property. Forensic Accounting firms can help detect whether or not fraud has occurred.

I recommend: Syfact International describes how they can assist with fraud detection.

Expert witness

An expert witness is an individual who has been educated and trained or who has experience or knowledge of forensic accounting beyond the average person. The individual's expertise is sufficient enough for others to legally rely upon their specialized opinion about evidence. Forensic accountants can be expert witnesses in legal proceedings where illegal financial activities have occurred.

I recommend: Go to Lectric Law Library for more information. Expert Law expands on the various fields, and industries, that might use the services of an expert forensic accountant.

Breach of fiduciary duty

Breach of fiduciary duty is referred to as constructive fraud when acts, omissions or concealments are considered fraudulent and that give one party advantage over another because of the conduct. Insider trading is another type of breach of fiduciary duty and is deemed such when an insider or related party makes trades in a company's securities because they have access to non-public information. Forensic Accounting firms can help investigate claims of breach of fiduciary duty.

I recommend: USLegal has a detailed definition.

Embezzlement

Embezzlement is exploiting, secreting or misappropriating financial assets by someone within a company to whom the assets have been entrusted. It is a type of financial fraud. Types of embezzlement include clerks handling money can embezzle cash from an employer or lawyer can embezzle funds from trust accounts. Forensic accountants can investigate and identify when embezzlement has occurred.

I recommend: Einstein Law defines the term and explains some of the warning signs to look for.

Product liability

Product liability is a specific area of the law that relates to the way in which manufacturers, distributors, retailers or suppliers who make or sell products are held responsible for any injuring the products cause. Forensic Accounting firms can help investigate claims of product liability.

I recommend: See CBS Interactive for a more descriptive definition.