Forensic Accounting and Audit

Forensic means having to do with a court of law. Forensic scientists testify about things like blood splatters and DNA. Forensic accountants testify about company finances, in such situations as fraud trials or cases related to tax evasion.

Audits happen when someone other than the original accountants takes a formal look at a company’s books. The goal is to check the work to make sure that the financial statements truly reflect what’s going on at the company.

Most audits are relatively friendly, a double-check to ensure accuracy and honesty. Sometimes, though, when a crime is alleged, or a civil court case is launched, these audits become court ordered. Those situations can bring in the forensic accountants for the kind of audit that more closely resembles a proctology exam than a financial endeavor.