Embezzlement charges can bring devastating blows to businesses and individuals alike. When allegations of financial fraud arise, providing a correct and detailed picture of your transactions is often crucial. Here’s where a specialized field called forensic accounting can come into play.
Forensic accountants are financial detectives who help uncover the truth behind suspicious financial activities. Understanding their service can help you decide whether to consider it among your options.
Following the money trail
Forensic accountants specialize in examining financial records to detect irregularities and fraud. They often work closely with law enforcement agencies, lawyers and other authorities to gather evidence and provide testimony in court.
In embezzlement cases, they:
- Scrutinize bank statements, payroll records, invoices and other financial documents
- Identify unauthorized transactions or misappropriations of funds
- Create detailed charts and reports that illustrate where the money went and how it got diverted
- Calculate the extent of financial losses
Forensic accountants also use various techniques particularly helpful for businesses, such as:
- Comparing current financial records with historical data
- Conducting interviews with employees
- Reviewing internal controls within an organization to identify weaknesses that could have allowed embezzlement to occur
By following the money trail, they can help identify the source of embezzlement, the methods used to conceal funds and the individuals involved.
Supporting legal defense
Forensic accounting plays a decisive role in many defense strategies. Information proving that financial discrepancies were due to accounting errors rather than intentional fraud can prove pivotal in exoneration.
Forensic accountants may also assist you in preparing for legal proceedings by:
- Organizing financial documents
- Preparing for depositions
- Developing strategies to counter the prosecution’s claims
Discuss forensic accounting with your criminal defense attorney to see how it can affect your case’s outcome. Information collected through this process can also provide your business with additional benefits, such as recovering stolen assets and preventing fraud in the future.