Forensic Auditor and Fraud Investigator: Necessity to contact such experts

The national and international press reports daily news relating to various types of fraud, many of which affect companies and, indirectly their stakeholders also that is, shareholders, creditors, employees, the banking system, etc.

Then there is the reader who often remains intrigued by the news concerning corporate fraud, but remains unaware of its dynamics, convinced that it is a world in some ways complex, almost foreign.

Without thinking that, on the contrary, the logic and mechanisms underlying the fraud as a whole are simpler than you can imagine. The professionals who deal with this issue are well aware of this, namely the fraud investigator and the  forensic expert/professionals

These professionals know well that it is of fundamental importance not only to know and study the models of fraud but also the elements that have allowed a person to commit a fraudulent act. Also to be able to identify potential warning signs that can hide further fraud not yet identified.

A series of activities are therefore entrusted to the forensic accountant, from the investigative and reconstructive one of the fraudulent cases to the identification of the subjects involved and their responsibilities, up to the collection of evidence that may be produced in court.

The forensic accountant therefore often finds himself operating not only in emergencies but also in delicate contexts to prepare a document that describes, in clear and schematic language, the results of the investigation and that allows the internal company functions involved, together to the board of directors of the company and the external lawyers of the latter, to understand the events and to take the necessary decisions in an informed manner.

What is forensic accounting and how has it become an increasingly important component of the accounting profession?

There is nothing mysterious about this branch of accounting, although the term itself suggests some complexity. It is only an activity related to accounting used to establish evidence in a dispute and leading to the expression of an expert opinion in court (Section 45 of Indian Evidence Act, 1872).

The accountant, by his version of the facts, then serves as an expert witness. Forensic accounting is used in various cases of criminal or civil proceedings: fraud, divorces, bankruptcies, matrimonial disputes, insurance claims, manslaughter lawsuits, personal injury claims, automobile accidents, malpractice, business losses, professional negligence, disputes involving shareholders or partners, valuations of companies with a view to sale, commercial disputes, etc.

Forensic accounting can be divided into two main categories: assistance in financial litigation and investigative accountancy.

Financial litigation assistance, as the name suggests, is offered in cases of ongoing litigation, especially in civil lawsuits where it is necessary to quantify the pecuniary damage suffered as a result of a breach of contract, for example.

Investigative accountancy, on the other hand, often includes an investigation related to criminal activities such as theft by an employee, embezzlement, Ponzi scheme.

The main objective of CAC is to provide efficient, effective, and real accounting support. The firm has professionals with extensive experience in the organization, registration, analysis, and consolidation of the economic transactions incurred in your company, at the level of financial statements.

We suggest you resort to the Forensic Accounting & Fraud Detection services provided by CAC as the firm has one of the best professionals working in it. The expert team of CAC will help you in preventing criminal or other illegal activities in your business.

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