Forensic Accounting Defined
Forensic accounting involves the application of special skills in accounting, finance, auditing, economics, and law, as well as investigative skills to gather and analyze financial data and to interpret and communicate findings. Simply put, forensic accounting means investigating the flow of funds. Our forensic services include both litigation and investigative services. For more, see our article “What To Look For in a Forensic Accountant”
Litigation Support | Expert Witness
We provide litigation support services to attorneys and other professionals involved in current and pending cases ranging from funds tracing and support calculations to business valuations and forensic investigations. We assist attorneys throughout the entire litigation process in the analysis, compilation, and explanation of relevant case facts to clarify the crucial aspects of a given case.
Embezzlement involves the premeditated theft or misappropriation of cash or other assets that have been placed in one’s trust. This may include an employee or agent of a company who is placed in a position of responsibility who fraudulently uses the company’s assets for personal gain. We analyze and quantify damages resulting from embezzlement as well as other forms of financial fraud.
Product Liability | Often there are damages associated with a defective, contaminated, or tampered product. We are able to calculate physical damages, lost profits, extra expenses and costs to recall or rehabilitate a product.
Personal Injury | We are skilled at computing past and future wages and other economic damages resulting from personal injury and wrongful death. In performing a personal injury computation we evaluate trends, consider future wages and pension benefits, project future medical costs, and work with other experts to determine future earnings capacity as well as expected costs.
We have experience in tracking, evaluating and auditing of costs associated with the replacement or repair of property. We can aid the insurance adjuster in presenting the claim data in a clear and concise manner and work with adjusters and the insured to assist in resolving the claim. We work closely with construction engineering consultants and other experts to collaborate and evaluate both the necessity and reasonableness of costs presented. We verify and categorize incurred expenses, perform inventory counts and use historical information to calculate the amount of lost stock. We assist adjusters on all types of claims and are able to quantify and categorize the different types of costs associated with each loss.
We have experience in construction losses, construction defect, and construction funds diversion. We are skilled at reviewing the general contractor and subcontractor contracts, performing evaluations to ascertain if there were duplication of charges, overcharging of materials, overcharging of man hours, disallowed mark-ups and other areas of construction billing often prone to errors or dishonest practices.
Lost Profits Due to Business Interruption, Contingent Business Interruption, and Extra Expenses
We have expertise in computing loss of income that a business suffers after a disaster. We work with insurance providers to identify, quantify and prove the value of the loss. We can perform a rough order of magnitude calculation up front to assist the adjuster in setting appropriate reserves with some basic financial information. This is very helpful with a large loss where multiple insurers and multiple layers of coverage are involved. We can evaluate, audit and measure extra expenses that are incurred to avoid or minimize the suspension of business. Initially, we meet with or have a discussion with the insured to better understand the loss and to gather the records necessary (financial statements, tax returns, reports, payroll records, etc.) to evaluate the loss. In projecting income, we consider the trends of the industry and compare the projected revenue to the actual revenue for the period of restoration and offset lost revenue by saved expenses. We also consider other factors that may have had an impact on sales that may have been unrelated to the insurable event (for example, decline in the economy, or a change in business model).