While the forensic accounting profession has technically been around since the early 1900s, the evolution of the industry has been drastically transformed in light of progress in the economy, society, and technology. This progression has opened the doors to the massive importance of forensic accounting investigations in all types of fraud today. From Ponzi schemes to corporate corruption, financial scandals have rocked the world time and time again. Forensic accounting has grown in prominence and reach since the passage of Sarbanes-Oxley and its momentum will continue as fraud remains widespread in today’s economy. As a more than $6 billion industry, forensic accounting has become one of the most interesting, and more essential, aspects of accounting.
With a range of fundamental ethical principles underlying their work as a whole, forensic accountants are tasked with an incredibly important job. Take a look at some fascinating facts about forensic accounting below:
- Forensic accounting is sometimes called “fraud examination accounting”
- The two main categories are: 1) investigation and dispute resolution and 2) litigation support
- The capture if Al Capone was one of the most prominent forensic accounting cases and gave a spotlight to the industry
- Many forensic accountants today have become a CFE (Certified Fraud Examiner) or a CrFA (Certified Forensic Accountant)
- Expert witnesses are in high demand, as judges often make rulings based upon their findings
- Forensic accounting is used in both civil and criminal cases, as well as family law matters such as divorce
- As fraud continues to grow, the forensic accounting field becomes more and more indispensable
- Technology has made fraud easier and thus creates a massive opportunity for forensic accountants to utilize their expertise
- While technology has reduced the number of accountants used in the workplace, this reduction is likely to lead to more fraud and theft
- Settling divorce disputes is one of the most common tasks for a forensic accountant
- Unlike an auditor, a forensic accountant is typically called upon once suspicion of fraud has been detected
- Fraud-related engagements are necessary to unearth potential scandal within an organization
Far too many people misunderstand the general role of a forensic accountant. At Ellrich, Neal, Smith & Stohlman, P.A., we provide services including 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 professional service offerings and how they may align with your personal or business needs.