Most business owners reach out to their Brisbane accountant regularly for help with forecasting, budgeting and tax planning/preparation, but sometimes a little more help is required in the form of forensic accounting.
This more complex type of accounting is needed under a few different circumstances, for example when there are issues around potential financial fraud, when assets go ‘missing’ or when there is a legal dispute about money.
If you think you may need a forensic accountant in Brisbane, here’s an idea of how they can help you or your business.
What is forensic accounting?
Forensic accounting is a specialised area of accounting that involves examining complex business and financial transactions. Specialist forensic accountants use a combination of investigative skills and financial analysis to find and review financial data, often in the context of legal disputes or investigations.
If you operate a business and are having difficulty figuring out exactly what’s been going on with your finances, your forensic accountant can help you uncover financial fraud and locate hidden assets. They can also provide expert testimony in court cases where required.
Skills and qualifications of a forensic accountant
Your forensic accountant in Brisbane will typically have a strong background in accounting, finance and auditing. Their so-called ‘soft skills’ include the ability to think critically and stay curious about their investigation. As shared by Investopedia, a forensic accountant is often on the lookout for what will end up being evidence a crime has been committed. They may be called in by an insurance or legal firm as well as the owner of a business.
Forensic accountants often find themselves looking through a great deal of data to analyse financial performance, identify anomalies and figure out what has caused them. Once they have the information they need, they will present it so their clients (or a court judge) find it easy to understand.
What Forensic Accountants in Brisbane Do
Some of the most common tasks forensic accountants perform include:
Assessing Damages and Losses: Forensic accountants are often called in to calculate damages or losses resulting from a particular event, such as a breach of contract or a sudden drop in revenue. They may use financial modelling techniques and analysis to figure out how much money has been lost.
Tracking and Tracing Funds: Forensic accountants are often asked to trace the flow of funds in a complex financial transaction, in order to identify any irregularities or potential fraud. This may involve analysing bank records, financial statements, and other financial documents to track the movement of money.
Identifying and Recovering Assets: Forensic accountants may be engaged to identify and locate assets that have been hidden or transferred in an effort to avoid being detected or seized. This may involve analysing financial records, conducting interviews with key personnel, and working with law enforcement agencies or other stakeholders.
Researching and Documenting Findings: Your forensic accountant may conduct a due diligence review for your company and present their findings to your business, insurer or legal team.
Testifying in Court Cases: Forensic accountants may be asked to testify in court as an expert witness. This may involve presenting complex financial information in a way that is easy for a jury or judge to understand, by using charts, graphs or diagrams.
Conducting Financial Audits: Forensic accountants may be engaged to conduct financial audits with a view to identifying potential areas of financial mismanagement or fraud.
Gathering and Analysing Data: In Brisbane, forensic accountants are often called upon to gather and review data in the context of a legal dispute or investigation. Not all information is spreadsheet-based, sometimes they have to interview staff or other stakeholders.
Assisting in Alternative Dispute Resolution: If your company is involved in a dispute with another business, a forensic accountant can help by sharing their knowledge or reviewing data and giving their opinion on the subject.
Supporting Individuals and Families: A forensic accountant may be called in to help find funds or assets that have gone missing, or review finances as part of a dispute over a separation, divorce or deceased estate.
Having the help of a forensic accountant can fast-track the process to figure out how and why money has gone missing, and identify the parties responsible. It’s handy to have one in your list of contacts for when you need it.
Need a forensic accountant in Brisbane or on the Gold Coast? Reach out to Crest Accountants today.
