Forensic accountants can undertake a range of financial investigations. For example, they may look into allegations of fraud, instances of financial irregularities, suspicions of misappropriation of assets, regulatory or legal breaches, or other financial wrongdoing.
Generally, a forensic accountant will look to establish what happened, when it happened and how it happened. Alongside other specialists depending on the types of issues uncovered, they can then help identify ways to prevent recurrence. Often a suspicion or evidence of one issue is the tip of an iceberg.
How the investigation is conducted
An investigation will include a detailed review of financial records, such as bank statements and accounting software, alongside other documents, including emails and correspondence. The investigators may conduct interviews with employees, third parties and other people potentially involved. There is often a need to gather and preserve evidence in line with the relevant legal standards, and that may include electronic data and work alongside solicitors in this regard. There may also be a need to undertake research and background checks to identify further line of enquiry which may not be immediately apparent.
Given the nature and sensitivity of investigations, forensic accountants will often work alongside legal teams and other specialists, as part of a multi-disciplinary investigative team.
