Similar to the way that medical examiners perform autopsies of a body to determine the cause of death, forensic accountants perform financial autopsies to determine the cause or value of a financial related dilemma. As a result of the accounting scandals at Enron and WorldCom, among others, forensic accounting has emerged as the in-demand industry for 2002. Forensic accounting is an accounting analysis that, once completed, will be used as the basis for discussion, debate and ultimate dispute resolution of a financial quandary.

Forensic accountants are typically hired by attorneys to assist them by analyzing, quantifying and explaining a situation that involves anything financial. Services include helping a business owner in identifying if an employee is stealing; fraud investigations when business partners suspect fraud; analyses to determine the damage value in the event of a breach of contract; searches for hidden assets in a divorce; and providing several property division options in a marital dissolution. Further, forensic accountants can value a construction claim or a business income loss for an insurance claim or litigation. They are specialists that can pore over financial documents, reconstruct records, interview people and present a report that interprets and explains complicated financial information in terms that non-accountants--and if necessary juries--can understand.

Forensic accounting has typically been a little-discussed area of practice. Because a business usually calls in forensic accountants when it has a substantial problem to be solved, often no one besides the business owner, his attorney and the accountant know the forensic accountant has been retained. Businesses typically just want to know what the problem is, how bad it is, how to prevent it from happening again, without reading about it in the morning paper. But often, individuals and smaller businesses don’t hire forensic accountants because most people don’t realize that an accountant may be able to help them resolve financial problems that have nothing to do with taxes.

Importantly, because forensic accounting often involves litigation, forensic accountants can be subjected to intense verbal attacks by lawyers in a courtroom or in deposition. These attacks are an attempt by the opposing counsel to make the forensic accountant appear less credible to a judge or jury. However, the experienced and professional forensic accountant will be well prepared, confident in the accuracy of his analysis and will not be flustered by rigorous cross-examination. In addition, because the forensic accountant is first a Certified Public Accountant, he must always adhere to the professional and ethical standards set forth by the state accounting board.

Your BP team consists of several forensic accountants capable and willing to assist you in a dispute. Feel free to contact Patrick DeLangis, Director of Litigation Services and Forensic Accounting, with any questions you may have.