Fraud is the most common crime in the UK and beyond today. It costs the nation billions of pounds every year and can have a devastating impact on people and company’s finances. Forensic accountants represent the most skilled professionals in their field, the front-line against shielding people and businesses from fraudulent activity thanks to their unmatched technology and training.
The role of a forensic accountant is to utilise their specialist expertise and state of the art equipment to protect you, your assets, and your money. In a constantly growing financial landscape with innovation always on the horizon, the importance of forensic accountants is growing year on year to assist against new-age, sophisticated fraud techniques.
While most major companies have an accountant in-house to monitor finances and protect them from fraudulent activity, innovation in technology and fraud mean that this is not always enough and businesses are finding themselves being caught out more and more.
We have summarised below what is forensic accounting and how it assist individual and companies to fight with crime and fraud.
What is Forensic Accounting?
Forensic accounting is an in-depth analysis of misrepresentation and fraud in the financial information of an entity by conducting a detailed investigation of financial data.
The main aim of forensic accounting services is to determine the validity and accuracy of accounting entries and financial statements.
Forensic accounting is a widely used accounting discipline. It resolves various financial conspiracies like bankruptcy, embezzlement, tax evasion, financial fraud, asset misappropriation, money laundering, and any financial theft.
Numerous companies offer forensic accounting services. One is Parker Russell International, a leading global tax, audit and financial services network.
How Does Forensic Accounting Help Companies?
Following are some ways in which forensic accounting can help companies. Let us know about them!
Increased Efficiency:
As discussed already, forensic accounting services involve investigating and examining the financial process. The whole process revolves around detecting problems and areas of improvement in business which leads to enhanced efficiency of businesses.
Reduced Losses:
This aspect is one of the most important reasons a company should conduct forensic accounting. Fraudulent activities and financial discrepancies can cause enormous expenditure.
Enhanced Brand Reputation:
Fraud can impair the business’s brand reputation to such an extent that it gets impossible to fix. Forensic accounting firms help prevent that.
We work as one integrated team and cultural understanding to deliver exceptional and tailored services in audit and accounting, as well as tax, financial advisory, consulting and legal services.
Need for Forensic Accounting
With the advancement of technology, corporate scams are rising each day. Therefore, the need for forensic accounting has also increased.
However, a single individual can not carry on the whole process of forensic accounting. Forensic accounting firms carry it out with a structured team of professionals, who may be forensic or certified public accountants.
We, along with Parker Russell International, a leading network of audit, tax, and other related services, offer quality services globally.
Let us now know about the various applications and requirements for forensic accounting.
Business Fraud Investigation:
Business investigation requires a detailed review of financial documents. Forensic accountants, through asset identification, reviews of due diligence, and forensic intelligence, identify offenders and reduce the risk of business fraud.
Asset Misappropriation:
Often, companies hide or misappropriate assets to evade tax. Forensic accounting firms/companies, like those associated with Parker Russell international, detect those misappropriations. These misappropriations include embezzlement, property theft, etc.
Insurance Claims:
Throughout the whole process of forensic accounting, forensic accountants quantify losses in accidents and medical negligence cases. They also settle claims, review insurance policies, investigate property losses and calculate potential losses.
Tax Fraud:
To reduce tax liability, companies usually furnish false records. Forensic accounting is of great use to prevent or detect and correct such a type of fraud. Forensic accountants catch tax evasion easily.
Money Laundering:
Money laundering involves concealing the origin of the money derived from illegitimate sources like corruption, embezzlement, and drug trafficking. Members of forensic accounting firms are trained to identify those illicit sources of money.
Bankruptcy and Economic Losses:
Business losses include patents and trademark infringement, breach of contract, and product liability claims. Getting forensic accounting done helps quantify the loss and damage. Forensic accountants not only probe the circumstances leading to such disputes but also carry out recovery procedures in case of bankruptcy.
Family and Marital Disputes:
Forensic accountants also assess financial compensation for the family, divorce, and property disputes and quantify compensation for alimony in divorce cases.
Parker Russell UK has been providing clients with expert forensic accounting services and has built a excellent reputation as one of the top firms in the country.
Our devoted team of forensic accountants’ assurance that they will leave no stone unturned and no file unread in the hunt for answers.
With experts in the field who have seen it all and done it all when it comes to forensic accountancy, they know what to look for, and how to guide you through what can be a difficult time.
Parker Russell UK team specialises in providing an excellent forensic accountancy service that is designed to help keep you and your business safe. For further support and information on how we can help, contact us at info@parkerrussell.co.uk, our team today, or Contact us.
