Areas that need the services rendered by the forensic accountants
Forensic accountants are in great demand these because of their services rendered in the following areas:
1) Detection of fraud where the employees commit Fraud:
In situations where the employees are suspected to be indulged in fraudulent activities within an organisation: The forensic accountant is hired when any employee is caught to have committed fraud. In such situations, the forensic accountant is responsible to locate any assets created by the fraudulent employee out of the funds defalcated and interrogate him to get the hidden truth.
2) Criminal Investigation:
In criminal investigations, the services of financial accountants are availed to solve matters relating to financial implications. The report submitted by the forensic accountants considered in preparing and presentation as evidence.
3) Outgoing Partner’s settlement:
A forensic accountant can be hired to correctly assess the dues (assets) as well as the liabilities correctly of an outgoing partner if he is not happy about his settlement
4) Professional negligence related cases
Such cases are taken up by the forensic accountants to measure the loss occurred due to due to non-conformation to Generally Accepted Accounting Standards (GAAS) or non compliance to auditing practices or ethical codes of any profession such professional negligence or shortage in services.
5) Arbitration service:
Forensic accounting presupposes special training in the area of alternative dispute resolution, they can also render arbitration and mediation services for the business community.
6) Cases related to any motor vehicle accidents:
Forensic accountants can take up cases relating to facilitating settlement regarding motor vehicle accident as they are well aware of the ins and outs of laws relating to motor vehicles and thus can help in measuring economic loss when a motor vehicle meets with an accident.
7) Settlement of insurance claims:
Insurance companies engage forensic accountants to have an accurate assessment of claims to be settled. Similarly, policyholders seek the help of a forensic accountant when they need to challenge the claim settlement as worked out by the insurance companies. A forensic accountant handles the claims relating to consequential loss policy, property loss due to various risks, fidelity insurance and other types of insurance claims.
General Dispute settlement: Business organisations hire forensic accountants to look into contract disputes, construction claims, product liability claims, infringement of patent and trade marks cases, liability arising from breach of contracts and so on. Matrimonial dispute cases are also entertained by the forensic accountants wherein their role is confined to locating and evaluating the assets involved.