What Is Forensic Accounting?
Forensic accounting is accounting that is suitable for legal review, offering the highest level of assurance since it is arrived at in a scientific fashion. Forensic accounting is most often utilized when there is an actual or anticipated dispute or litigation related to a business.
Not only do forensic accountants look at the numbers, but they also detect and interpret evidence of abnormal phenomena introduced into the books of a business, and provide reports on their findings.
Forensic accounting is an important element in the due diligence associated with an asset purchase, stock purchase or any other business merger or acquisition.
Why Do I Need A Forensic Accountant?
Here are a few examples of times when you may need a forensic accountant:
- Your spouse died and you need help understanding assets and liabilities that passed to you.
- You purchased or inherited a business with incomplete financial records.
- You are going through a divorce, and you are concerned your spouse is hiding money or assets and/or you want to ensure you receive an equitable share of the actual value of your spouse’s business or professional practice.
- You are being sued or suing someone in a business dispute.
- You own a business, and you suspect fraud.
Represent Spouses Of Business Owners
In the event of death or divorce, part or all of a spouse’s business may become yours. Here are examples of issues that could arise:
- The business may be undervalued.
- Your spouse may have hidden accounts and assets.
- Your spouse may not have paid taxes.
- An accountant may have committed fraud.
- The business could have liabilities you do not know about.
- Your spouse may own foreign assets, subject to FBAR reporting requirements.
Representing Business Owners
Our attorneys regularly assist business owners who need to know not only why their accounting numbers do not match but also how to prevent such problems in the future. We utilize forensic accounting for purposes of detecting fraud and identifying areas of risk. We also help businesses impose internal controls on finances and financial procedures to reduce the risk of fraud in the future.
Contact Us To Learn More About Allen Barron's Services
For more information or to discuss your tax, legal and accounting needs contact Allen Barron or call 866-631-3470 for a free and confidential initial consultation. Learn about the importance of integrated business strategy and coordination across legal, tax and accounting systems.
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San Diego, CA 92127
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