Most companies don’t think about looking for San Diego forensic accounting services until they really need them. Forensic accounting is a specialized accounting service performed at a very high level that is suitable for legal review. When a company turns to an accounting firm for this type of service, they expect the highest level of assurance that can only come from an extremely scientific auditing process. This is often performed in moments of distress, such as expected disputes or situations that may warrant litigation in the future. A forensic accounting consultant can come in and do much more than go through the numbers and analyze the basic documents – they will search every mechanism of the company for evidence of abnormal activity that may be cause for alarm. So just what kinds of scenarios merit third-party forensic accounting for San Diego businesses? Here are three possibilities to consider.
Scenarios Meriting Third-Party Forensic Accounting
- Possible Financial Discrepancies – Clients sometimes require forensic accounting consultants to determine whether their financial statements reflect current information that conforms to generally accepted accounting principles. This basically means that their records and financial statements conform to the same standards as everyone else’s. It’s especially important for any individual or company that may be vulnerable to investigation by a government entity.
- Fear of Fraud – If there is any concern about possible fraud or other potentially damaging financial activity within the company, it’s imperative to work with a third-party forensic accountant. Accounting experts can analyze your financial records and determine whether fraudulent transactions are taking place that could be prevented, or that could potentially be detected by various regulatory bodies. This is a completely proactive procedure – it is not an investigation, but more of a preventative measure to make sure no one has any reason to investigate in the future.
- Internal Auditing – There are many situations that may warrant internal auditing, depending on the forensic accounting needs of the company or individual business owner. When a client comes to a forensic accountant, they typically have a specific goal in mind, such as assessing a financial loss, calculating royalties or the impact of pension plans, or any number of other specific reasons. The experts at Allen Barron, Inc. work with a wide variety of businesses in San Diego and other cities that need to get a solid idea of where they stand now and prevent possible financial problems in the future.
For assistance with your forensic accounting or general business accounting needs, please give us a call at 866-631-3470 to schedule a complimentary consultation to speak with one of our accounting specialists.