It often happens that company managers find out that there are some inaccuracies in the financial reports or there is an internal fraud going on in the business. And this is where we need forensic accounting services in India.
Forensic accounting is considered to be one of the best ways to detect fraud in a company and handle its consequences. To make sure that your business has the required financial safety and security, it is significant to opt for forensic accounting services in Delhi.
In addition to this, forensic accounting also helps in dealing with financial disputes that may deteriorate a company’s image if not managed and treated carefully.
Forensic accountants are trained to go beyond numbers by addressing the reality of business problems. Through this profession, accounting knowledge and skill began to be used for matters before the law. It is possible to divide the scope of practice of the forensic accounting profession into three parts.
- Litigation Support
- Fraud Audit or Investigative Accounting
- Expert Witnessing
Litigation Support: Litigation support is the accounting support provided to the relevant lawyer before or during a lawsuit. It is more about economic loss. For example, calculating financial loss because of a breach of contract is typical litigation support. The issues that forensic accountants can help lawyers in this respect are gathered in two main points.
- Revealing the necessary data
- Analyzing the collected data
In the process of revealing the necessary data, the activity of determining and presenting relevant, sufficient, and correct data that lawyers will need in a legal action takes place.
In the analysis process, there is the aim of evaluating the financial data to be presented to the court and helping the lawyers to interpret these findings.
In general, litigation support by a forensic accountant covers the following topics:
- Obtaining the necessary documents to disprove or support a claim,
- Examining documents to identify missing points and make a preliminary assessment of the situation,
- Understanding the financial situation and additional questions to ask
- Participate in the process of examining the findings, which will facilitate the reporting of questions.
A vast no. of aspects related to the finances of a company are considered by forensic accountants when doing forensic accounting.
Hence, it is ensured that the company works in line with the standards, doesn’t have any chances of becoming a victim of internal fraud, and gets the necessary support in handling financial disputes.
Apart from participating in litigation procedures, forensic accountants perform investigative activities, like assessing the financial reports and statements of the company to search for any potential inconsistencies and anomalies that may rupture the robust financial structure of the company.
Every company has to assure that the financial information shared with its stakeholders is accurate and does not give a false impression. For this reason, having a forensic accountant working for your business should be one of your priorities as this expert will find and rectify the mistakes made by your accountant.
If you need forensic accounting services, it is best to contact the experts of CAC for this work.