The accounting industry as a whole must continually evolve and progress in order to keep up with the changing demands and needs of the individuals and businesses in which they serve. Relatively speaking, forensic accounting is a fairly new profession. As society, the economy, technology, and relevant legislation shifts, forensic accounting must mold to address these new requirements. In a world where information is available at virtually anyone’s fingertips, both individuals and businesses are extremely susceptible to fraud. Over the course of the last five years, forensic accounting has seen an approximate 7.1 percent annual growth, according to IBISWorld’s market research report.
One of the most famous forensic accounting cases started with Al Capone’s tax evasion. Since then, the opportunities for forensic accountants have expanded significantly. In 2002, Sarbanes-Oxley opened the door to a new arena of forensic accounting and the need to protect both the public and shareholders from fraudulent practices in reporting and accounting. With whistleblowers’ newfound protection and business practices now being looked at under a magnifying glass, forensic accounting is imperative to ensure that audits are conducted regularly and that financial statements are near perfect. Additionally, Sarbanes-Oxley brought to light the need to hire an external investigation. As a result, organizations rely heavily on forensic accounting for investigative accounting and litigation support.
With a versatile skill set, forensic accountants are tasked with wearing many hats – accounting, ethics, law, technology, and criminology to name a few. From high-profile divorces to corporate fraud, a notable growth in the forensic accounting industry can be attributed to:
- A rise in fraudulent activity
- Advancements in technology
- A growing litigious environment
- A careless accounting staff
The history of forensic accounting is consistently dictated by the evolving world. Fraud examination skills will continue to be a necessary expertise. A true emphasis on compliance has large organizations running to call on external controls. At Moore, Ellrich & Neal, P.A., our firm’s litigation services department provides professional services to participants in the legal process. These services include forensic accounting, fraud detection and prevention, assistance with discovery matters, consultation, and expert witness testimony.
We provide litigation services in both federal and state courts in a wide variety of cases including brokerage fraud, shareholder disputes, class action litigation, personal injury, marital dissolution, contract claims, business damages, lost profits, business and contract disputes and criminal cases. Contact us today to learn more about our expert forensic accounting team!