Woodbury, NY (PRWEB) December 02, 2013
Gettry Marcus CPA, P.C., summarizes the role of the forensic accountant in the present day litigation process.
For many attorneys, retaining the services of forensic accountants has become an integral part of resolving their clients’ legal disputes, either before or during litigation. This need for forensic accountants in litigation matters is a result of financial issues that require specialized knowledge in multiple financial disciplines that a forensic accountant possesses.
Attorneys can use forensic accountants to assist in translating complex financial issues into a more understandable manner. Frequently, these financial issues are a key factor in the ultimate outcome of the lawsuit. In today’s computerized society, the attorney’s deployment of forensic accountants to inquire, identify, investigate, test, examine, analyze and interpret financial documents and data is required more than ever before.
With the forensic accountant’s acumen in the financial arena, and a sleuth mentality, this brand of accountant has been compared to Sherlock Holmes. Similarly, the forensic accountant is proficient at investigating, identifying and analyzing financial information, in conjunction with determining the people associated with the case, in an effort to follow the money. Ultimately, the financial forensic results could uncover hidden assets, identify unreported income, determine lost profits, or aid the attorney in whatever specific financial issues the case requires.
There are several definitions of forensic accounting, one such definition being the art & science of investigating people & money. In this manner, financial forensic tools, techniques, and methodologies are employed in tandem with an investigation of the people, many of whom may initially appear to be unrelated to one (or both) of the litigants. Often, the money-related deception, which can occur through journal entries, financial statement manipulation, and other fraudulent methods, cannot be detected without the forensic accountant having an understanding of the people involved.
The application of forensic accounting involves a combination of special financial skills, such as accounting, auditing and finance, along with certain non-financial qualities, such as persistence, creativity, judgment, discretion and concise communication skills. This collection of attributes, combined with an inquisitive mind, enables the forensic accountant to investigate and assess the financial merits, as well as the integrity, of the distinct aspects of a litigation case for the attorney. By integrating these varied disciplines, the forensic accountant’s examination of both the financial and non-financial information can furnish the retaining attorney with invaluable insight at every juncture during the case, as additional events occur or facts become known.
Some of the types of litigation cases where the forensic accountant can be of assistance include shareholder/partner disputes, matrimonial dissolutions, breach of contact, lost profits and damage calculations, white-collar criminal investigations, breach of fiduciary duty, estate litigation and bankruptcy.
The timing of when the forensic accountant is hired can play a vital role in the outcome of the case. Hiring the forensic accountant as early as possible allows the forensic accountant to assist the attorney in a variety of ways, including making a preliminary determination as to the merits of the litigation.
For the full article about the forensic accountant’s role in the litigation process, click here.
Gettry Marcus CPA, P.C. is a Top 200 firm nationally with offices in Woodbury, Long Island and New York City. We provide accounting, tax, and consulting services to commercial businesses, high net worth individuals and various industries which include Real Estate and Health Care. We have one of the premier and most credentialed Business Valuation, Litigation and Forensic Accounting Groups in the New York Area. Our experience in diverse industries and a highly talented and experienced professional staff gives us the ability to share valuable insights into our clients’ businesses, to better understand their goals and problems and to help them attain the vision they have for their company.
Gettry Marcus is "Always Looking Deeper" to build value for our clients.
Media inquiries: Contact Fayellen Dietchweiler at 516-364-3390 ext. 225 or via email at fdietchweiler(at)gettrymarcus(dot)com.